Kalkine Media
Published Aug 24, 2022 21:39
Coles (ASX:COL) shares fall 4% as inflation impacts FY23 outlook
Australian supermarket group Coles Group Ltd (ASX:COL) reported its full-year results today (24 August 2022) for the financial year 2022 through an ASX filing.
Coles said in the ASX filing that despite substantial COVID-19 and flood delays, the third year of strategy execution resulted in good Supermarkets sales and earnings.
Meanwhile, shares of Coles were trading 4.01% lower at AU$17.95 per share on ASX today at 10.48 AM AEST. This underperforms ASX 200 Index, which was 0.54% up at 6,999.10 points today at 10.49 AM AEST.
Total supermarket price inflation was 1.7% for the year, and 4.3% in the fourth quarter. Fresh inflation was 4.7% in the fourth quarter, driven by both bakery - which reflected increased wheat prices - and fresh produce, which impacted supply of vegetables such as tomatoes, capsicums, and broccoli.
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Data Source- Company announcement dated 24 August 2022
For much of the first half, extended lockdowns in New South Wales, the Australian Capital Territory, and Victoria resulted in greater sales and customers preferring or being forced to buy locally rather than in larger shopping centre stores. As limitations were removed, sales growth remained high, with a strong Christmas business period and increased contribution from shopping center stores.
Local purchasing trends re-emerged as Omicron became more dominant in the second half, despite the lack of legal limits.
With no explicit COVID-19 limits, local shopping patterns slowed, with shopping center retailers contributing more to the fourth quarter.
Early in the second half, highly disruptive flood events in South Australia, New South Wales, and Queensland produced major road and rail logistics disruptions, including the longest recorded road and rail outage to Western Australia, which affected availability.
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Written By: Kalkine Media
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