Cost of living pressures dominated discussion at Coles’ Group F23 results announcement on Tuesday, with Coles Liquor sales revenue remaining “broadly flat” despite a return to growth in the second half of F23.
In a year that saw Michael Courtney appointed as the new Chief Executive of Coles Liquor, Liquor sales revenue in F23 remained steady at $3.6 billion, a 0.1 per cent increase on F22 having declined in the first half of the year by 2.4 per cent.
Liquor sales picked up in Q4 after recovering from cycling COVID-19 elevated demand in FY22, with second-half growth underpinned by an 8.5 per cent revenue increase in the Exclusive Liquor Brands (ELB) portfolio and strong eCommerce sales growth of 34.2 per cent in Q4, with an overall growth of 2.9 per cent in Q4.
EBIT decreased 3.7 per cent to $157 million in the 52 weeks to 25 June, with sales growth benefitting from supplier-led cost price increases and the government’s spirits excise increase.
The Liquorland banner performed well, with the Ready-to-Drink (RTD) category being the most lucrative category supported by 35 new liquor stores and 236 liquor store renewals, including the 475th Black & White Liquorland upgrade in Ocean Grove, Victoria.
259 new ELB and 627 new local lines were added to the Liquor portfolio, with a total of more than 500 awards across Liquor, including the Tasmanian Gin of the Year trophy for Pure Origin Tasmanian Dry Gin at the Melbourne International Spirits Competition and Tinnies Pale Ale being awarded the Best English Beer Pale Ale Trophy in the Pale Ale category, at the World Beer Awards Competition.
eCommerce sales revenue reached $203 million, an increase of 22.6 per cent compared to the F22, accelerating throughout the year with growth in the fourth quarter at 38.2 per cent.
Leah Weckert, CEO of the Coles Group, said: “I wish to thank our team members for their dedication to delivering for our customers and the communities we serve and for their resilience during several years of challenges. I would also like to thank our suppliers and customers for their continued support.”
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