Coles Liquor has announced its FY22 results, with sales revenue for the year at $3.6 billion, an increase of 2.5% on the prior corresponding period.
Gross retail sales of $3.6 billion increased by 2.4%. For the fourth quarter, Liquor sales revenue increased by 1.6% and 14.3% on a three-year basis (12% on a three-year basis in the third quarter) while comparable sales growth was 1.9%.
Coles Group said sales revenue growth was delivered as a result of solid trading across the year, particularly in the first half during the lockdowns in NSW, Victoria and the Australian Capital Territory when on-premise venues were closed.
It said the Christmas and Easter trading periods were strong. Liquorland was the strongest performing banner with 191
Black and White Liquorland renewals completed, providing customers with an enhanced range of local wines,
craft beers and boutique spirits.
Looking ahead, the Coles share price could be facing some headwinds after the company said both its liquor and supermarket sales growth are expected to be impacted by the cycling of COVID-19 lockdowns in the first half of FY22 and price inflation in the second half of FY22.
The categories driving growth
At a category level, RTDs and spirits were the key drivers of growth.
eCommerce sales grew by 49% with penetration of 4.6% in FY22, compared to 3.1% in the prior corresponding period. During the year, capacity was increased through the continued roll out of Click & Collect, the expansion of on demand (immediacy delivery) which is available in more than 400 stores, while 1400 products were added to the online range.
Coles said its Exclusive Liquor Brand (ELB) and local product contribution grew strongly, delivered through improved range planning and market-leading sustainability innovations such as the 100% recyclable eco-bottle wine range launched during the year featuring Accolade Wines and Taylors Wines brands.
The ELB portfolio continues to be recognised with more than 420 awards received during the year including ELB brand Smithy’s winning the Australian Lager of the Year at the Melbourne International Beer Competition.
Liquor completed 208 store renewals during the year including nine Vintage Cellar Evolution stores, in addition to
the 191 Black & White Liquorland renewals. For the year, 16 new openings and 12 closures were completed. At the
end of the period there were 933 Liquor stores.