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Supermarket Giant’s Sales Revenue Reaches $22.2 Billion, Slight Decrease in Profit

Coles shares rose nearly 8 percent in early morning trade, before pulling back slightly.

Australian supermarket giant Coles has reported a $594 million (US$388 million) net profit after tax in the first half of the 2024 financial year, 3.6 percent less than the first half of 2023.

However, the company reported a nearly 7 percent boost in sales revenue (pdf) to $22.2 billion in the first half of 2024, up from $20.8 billion in the prior corresponding half.

Coles also provided an insight into the first eight weeks of the third quarter, noting supermarket sales revenue has already grown 4.9 percent.

Shareholders appear to have responded positively to the results, with the company’s share price up 5.67 percent to $16.78 at the time of writing. In earlier trade, Coles shares soared nearly 8 percent to $17.13.

The company reported a group earnings before interest, taxes, depreciation and amortisation (EBITDA), another key measure of profitability, of $1.854 billion, up 2.5 percent on half one 2023. Underlying EBITDA rose 4.1 percent to $1.9 billion.

Supermarket group sales revenue rose 4.9 percent to $19.8 billion, while liquor revenue jumped 1.8 percent to $1.99 billion.

Management Pleased With Results

Commenting on the results, Coles chairman James Graham said it was pleasing to deliver a net profit after tax of $594 million considering the “significant cost pressures within the business.”

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“During the half year, we remained focused on delivering for all of our stakeholders. We are committed to continuing to invest in value for Australian households, supporting our suppliers and communities and delivering returns to our shareholders,” he said.

Chief Executive Officer Leah Weckert expressed sympathy for customers facing cost of living pressures, noting the company has reduced costs of hundreds of products.

“We understand the cost of living pressures that many of our customers face, such as higher rent, mortgage, energy, and other household bills. That’s why we are working hard to deliver value to our customers every day,” she said.

“Over the last six months, we lowered the prices of hundreds of products through our ‘Great Value, Hands Down’ campaign and we delivered additional value through a wide range of Exclusive to Coles products, weekly specials, and our Flybuys loyalty program. We know that price matters to our customers, especially during the festive season.”

Coles Insight Into Australian Economic Landscape

Looking to the future, Coles said Australia has the “highest population growth of developed and undeveloped countries.”

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