Overall profit boost for Coles while c-stores decline in FY2022 results

Coles has revealed an increase of 4.3 per cent in its net profit after tax, up to $1.05 billion, in its recently released FY2022 results.

Despite the overall profit increase, Coles reported that c-store sales revenue had dropped 5 per cent on the previous year, however it still showed an increase of 8.1 per cent on a three-year basis.

The supermarket giant said that c-store sales growth was negatively impacted by lower forecourt traffic due to lockdowns in New South Wales, Victoria, and the ACT in the first half, while reduced mobility from the Omicron variant and flood events in New South Wales and Queensland impacted sales in the second half.

Although by excluding tobacco, c-store sales grew by 0.9 per cent with strong growth in coffee, hot fast food, food-to-go, and drinks.

Steven Cain, CEO of Coles Group, said with the increased cost of living, Coles’ commitment to delivering value remains more important than ever.

“As examples, we are beginning to see our customers buying significantly more $1 Coles pasta and our $1 coffee at Coles Express has never been more popular.”

Coles Express successfully rolled out its Shell Coles Express App, which provides customers with Pay at Pump and Store Locator functionality, as well as monthly c-store offers.

Over the course of the year, one Express site opened while seven closed, taking the total network to 711 sites.

James Graham, Chairman of Coles Group, said the year reflected significant progress across all areas of the business and the critical role of investment in new technology and new systems to underpin long-term performance.

“The need for the Group to evaluate and respond quickly to a changing operating environment has never been more important as we focus on ensuring value for customers in an inflationary environment.”

Cain acknowledged the hard work of team members, suppliers, and the community in overcoming significant supply chain challenges including managing the impact of flooding on product availability, and Covid-19 and flu cases which have resulted in higher levels of absenteeism.

“It is encouraging to see that domestic product availability is steadily improving whilst the international supply chain remains more volatile due to the ongoing shipping disruptions and the conflict in Ukraine.”

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