Retail News CRM

Tag: underpinned

  • Coles Reports Robust Fiscal Year Results: Supermarket Sales Surge, E-commerce Thrives, Liquor Division Shows Moderate Growth

    Coles Reports Robust Fiscal Year Results: Supermarket Sales Surge, E-commerce Thrives, Liquor Division Shows Moderate Growth

    Coles has announced a 3.6% increase in group sales, reaching $44.3 billion, with an EBITDA rise of 11% to $3.9 billion for the current fiscal year. The group’s net profit after tax also increased, up by 2.4%, yielding a total of $1.07 billion.

    Driving Growth Through Supermarkets

    The company attributes much of its sales growth to its supermarket division, which showed a robust performance, growing by 4.3% and reaching $40 billion. The supermarket division’s EBITDA also rose by 9%, jumping from $2 billion to $2.1 billion. In addition, the division saw a rise in gross margin, from 26.6% to 27.4% on a year-on-year basis.

    This increase in supermarket sales revenue was bolstered by strong volume growth across transactions and basket sizes. Customers reacted positively to the company’s seasonal ‘Great Value, Hands Down’ value campaigns. Notably, the company had strong performance across several special occasions, such as Christmas, Easter, Halloween, and Mother’s Day. The success of collectible and continuity programs, such as the Curtis Stone Glassware and Harry Potter Magical Discs campaigns, played a significant role in bolstering Coles’ supermarket results for this financial year.

    Evolving E-commerce Performance

    Coles’ e-commerce sector within the supermarket division witnessed a rise of 24.4%, reaching $4.5 billion. The increase in penetration to 11.2% was driven by digital campaigns, Black Friday, Coles Fest, and the May Mega Sale.

    However, the group’s liquor division reported a slight increase of 1.1% in sales revenue, amounting to $3.6 billion, with a flat gross margin at 23.5%. The division’s EBITDA saw a decrease of 8.6%, falling from $133 million to $113 million on a year-on-year basis. Despite the decrease, Coles saw positive results in the liquor sales due to new store openings, a Tasmanian acquisition, and the curating of its wine category to meet local customer preferences.

    Liquorland and Future Plans

    Coles’ simplified ‘Simply Liquorland’ banner pilot was well-received in selected stores across South Australia, Victoria, and Queensland. The company plans to complete the ‘Simply Liquorland’ by the third quarter of the next fiscal year at a one-time cost of approximately $20 million. In addition, they plan to open about 19 new liquor stores, close 25 stores, and renew roughly 130 stores.

    Looking forward, Coles’ Chief Executive Officer, Leah Weckert, emphasized that the primary focus for the company will be on cost control and the delivery of the first full year of annualised benefits from its ADC program.

    Questions & Answers

    What drove the growth in Coles’ sales?
    The growth in Coles’ sales was largely driven by a strong performance in its supermarket division and positive customer response to its seasonal value campaigns.

    How did Coles’ e-commerce sector perform?
    Coles’ e-commerce sector within the supermarket division showed a significant rise of 24.4%, reaching $4.5 billion.

    What are the future plans for Coles’ ‘Simply Liquorland’?
    The ‘Simply Liquorland’ is planned to be completed by the third quarter of the next fiscal year, with approximately 19 new liquor stores being opened, 25 stores getting closed, and about 130 stores being renewed.

  • The A2 Milk Company Reports Robust Financial Growth Amid Challenges; Declares First Dividends

    The A2 Milk Company Reports Robust Financial Growth Amid Challenges; Declares First Dividends

    The A2 Milk Company has reported a significant increase in its revenue for the current financial year. The group’s revenue rose by 13.5 per cent, reaching $1.9 billion, a notable increase from last year’s $1.67 billion.

    Financial Growth and Profit

    This upward trend can also be seen in the company’s EBITDA, which increased by 17.1 per cent to $274.3 million. Furthermore, the company’s net profit after tax saw an impressive boost of 21.1 per cent, reaching $202.9 million.

    In China, a key market for the company, revenue grew by 18.9 per cent, totalling $1.3 billion. The company’s EBITDA also saw substantial growth, increasing by 14.6 per cent to $332.4 million. This growth has solidified the company’s position as a top-four brand in China’s infant formula market.

    Segment Performance

    The A2 Milk Company’s infant formula business reported a 10 per cent growth overall, largely propelled by its English label business that saw an increase of 17 per cent.

    However, the company’s Australia and New Zealand (ANZ) segment experienced a slight dip, with revenue declining by 0.4 per cent to $316 million. The ANZ segment’s EBITDA also fell, decreasing by 8.7 per cent to $57.5 million.

    In contrast to the ANZ segment, the company saw significant growth in the US, with revenue increasing by 22.5 per cent to $139.3 million. Despite this, the company did report losses in its EBITDA, though these were reduced to $9.3 million, down from the previous financial year’s $15.5 million.

    Company Milestones and Acquisitions

    “I’m proud of what our team has achieved this year, reporting record sales of $1.9 billion and double-digit earnings growth in our 25th year since The A2 Milk Company was formed,” said CEO David Bortolussi.

    The company has achieved a significant milestone this year, declaring its first-ever dividends with a 71 per cent payout ratio. This marks a significant moment for the company’s shareholders.

    In addition, the company has acquired Yashili New Zealand’s fully integrated nutritional manufacturing facility located in Pokeno, New Zealand. The facility comes with two existing China Label product registrations. Bortolussi described the acquisition as a pivotal moment for the company and a crucial part of their supply chain transformation strategy.

    Future Outlook

    Looking ahead, the company expects single-digit revenue growth in the next financial year. The company also anticipates an EBIDTA margin between 15 and 16 per cent and a similar net profit after tax as the current financial year.

    Questions & Answers

    What was the percentage increase in the company’s group revenue?
    The A2 Milk Company’s group revenue increased by 13.5 per cent.

    What was the growth rate of the company’s infant formula business?
    The company’s infant formula business saw a growth rate of 10 per cent.

    What does the company expect for the next financial year?
    In the next financial year, the company anticipates single-digit revenue growth, an EBITDA margin between 15 and 16 per cent, and a similar net profit after tax as the current financial year.

  • Treasury Wine Estates Records Robust Financial Growth; Penfolds Brand Sales Surge 7.3%

    Treasury Wine Estates Records Robust Financial Growth; Penfolds Brand Sales Surge 7.3%

    Treasury Wine Estates (TWE) has seen a substantial growth pattern in its financial performance for the present fiscal year. The company’s net group sales have experienced a 7.2% increase, elevating the figure from $2.7 billion to $2.9 billion.

    Growth in Profit and Profit Margin

    The gross profit of the group has witnessed a 15% surge, amounting to $1.4 billion. This growth is mirrored in the company’s gross profit margin, which has moved up from 45.3% to 48.6% year-on-year.

    The firm’s Earnings Before Interest and Taxes (EBITS) has also seen a significant growth, marking a 17% increase to reach $770 million. The company’s net profit after tax followed suit, with an 8.1% increase, amounting to $450.7 million.

    Brand Performance

    The company’s renowned brand, Penfolds, has also reported a positive net sales revenue growth of 7.3%, reaching $1 billion. The brand’s EBITS has also risen, showing a 13.2% increase to reach $477 million.

    The Treasury Americas brand of the group has reported a notable 16.8% surge in its net sales revenue, bringing the total to $1.2 billion. This growth was accompanied by a 33.9% increase in its EBITS, reaching $308.6 million.

    However, TWE’s Treasury Premium Brands reported a decrease in its net sales revenue by 5.9% year-on-year, with the figure standing at $693.5 million. The brand’s EBITS also plummeted, reflecting a 27.6% drop to $55.1 million.

    CEO Statement

    Tim Ford, CEO of Treasury Wine Estates, expressed his satisfaction with the company’s fiscal performance. Despite facing challenges in several markets, the company remained committed to executing its business strategies, strengthening the company’s long-term growth.

    Ford attributed the company’s strong financial performance to Penfolds’ continued momentum and the successful integration of Daou Vineyards into their luxury portfolio. He also highlighted the company’s recent transition to a new luxury portfolio-led operating model that enhances strategic clarity and positions the firm well for the future.

    Questions & Answers

    What is the reported increase in Treasury Wine Estates’ group net sales?
    The group net sales have seen a 7.2% increase, moving from $2.7 billion to $2.9 billion for the current fiscal year.

    What has been the performance of Penfolds and Treasury Americas brands in terms of net sales revenue?
    Penfolds reported a 7.3% increase in net sales revenue to $1 billion, while Treasury Americas revealed a 16.8% rise, amounting to $1.2 billion.

    What measures has the company undertaken for long-term growth as per the CEO’s statement?
    The CEO revealed that the company has remained focused on executing its business plans, integrating Daou Vineyards into their luxury portfolio, and transitioning to a luxury portfolio-led operating model.