Full Year 2024 Coles Group Ltd Earnings Call Transcript
Key Points
- Coles Group Ltd (CLEGF) reported a 5.7% increase in group EBIT from continuing operations to $2.1 billion and a 2.1% increase in NPAT to $1.1 billion on a normalized basis.
- The company achieved its highest-ever team member engagement score, indicating strong internal morale and satisfaction.
- Significant progress was made on key projects, including the commencement of operations at all four ADC and CFC facilities.
- E-commerce sales saw robust growth, with a 30.1% increase in supermarkets and a 9.2% increase in liquor on a normalized basis.
- The company declared a final dividend of $0.32 per share, fully franked, representing a 3% increase on FY23.
- The liquor segment faced challenges, with a 13.9% decline in underlying EBIT due to wage growth, fixed cost deleverage, and increased D&A.
- The company is still dealing with cost inflation and loss headwinds, which have impacted overall financial performance.
- Despite improvements, availability metrics are still below pre-COVID levels, indicating ongoing supply chain issues.
- The company expects significant implementation and transition costs for its ADC and CFC projects in FY25, impacting short-term profitability.
- The first eight weeks of FY25 showed a 1.4% decline in liquor sales revenue, partly due to the CrowdStrike outage, indicating potential vulnerabilities in the segment.
Good morning. It's great to be taking you through our full-year results this morning. Several members of our executive leadership team are in the room with me: Charlie Elias, our CFO; Matt Swindells, our Chief Operations and Sustainability Officer; Anna Croft, our Chief Commercial Officer; Ben Hassing, our Chief Digital Officer; Michael Courtney, Chief Executive, Liquor; and Amanda McVay, our Chief Customer Officer.
Before I begin, I would like to acknowledge the traditional custodians of this land on which we meet today, the [Wurundjeri] people of the Kulin Nation. We acknowledge their strength and resilience and pay our respects to their elders past and present.
Moving now onto slide 3. It's been one year since we unveiled our refreshed strategy, and I am pleased with the significant progress we have made. Looking back on the year, we have had a focus on investing in our customer offer whilst navigating a challenging cost environment in the form of cost inflation and loss headwinds.
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