Coles net profit falls after demerger restructuring costs

Company News

by Anna Napoli

Coles has announced its half year results for financial year 2019 with net profit slipping 29 per cent to $381 million compared to the same period a year earlier.

Including discontinued operations, as a result of the demerger from Wesfarmers, net profit was down 14 per cent to $738 million.

Sales revenue increased 2.6 per cent to $20.35 billion.

Group earnings EBIT (Retail calendar basis excluding significant items) declined by 5.8 per cent to $733 million primarily driven by lower Express EBIT and additional corporate costs associated with being a standalone ASX company.

Like-for-like sales growth slowed to 1.3 per cent in the second quarter due to the impact of New Years Eve.

Coles Group CEO Steven Cain said the result for the first half of the 2019 financial year was a solid outcome in a challenging retail environment.

Shares in Coles (ASX:COL) closed 0.08 per cent lower to $12.59 yesteday.