Coles Group Ltd (ASX:COL) shareholders will be a little happier today after the supermarket giant released a trading update and improved profit guidance.
3 things you don’t know about Coles
After 10 years being owned by Wesfarmers Ltd (ASX: WES), Coles Group was split from the broader Wesfarmers conglomerate (which owns Bunnings Warehouse) in November 2018.
The Coles name has operated in Australia for 100 years.
Today, Coles is one of the largest retailers in the country, serving 21 million customers per week across its supermarkets, Coles Express, Online, Vintage Choice and others.
Coles Group Ltd’s trading update
The Rask video above explains what EBIT or operating profit means and how to calculate it. For more videos, subscribe to the Rask YouTube channel.
Chrissie result turns positive
This morning, Coles provided investors with a trading update ahead of its official half-year financial results release on February 18th.
Previously management told shareholders to expect a slower period and result in the first half, saying:
“In its 2020 first quarter sales results on 29 October 2019, Coles reported that in the early part of the second quarter, Supermarkets comparable sales growth had trended towards the level achieved in the fourth quarter of the 2019 financial year.”
In its update today however management noted a 3.6% increase in comparable supermarket store sales in the second quarter and 2% for the half. The company’s liquor and express businesses improved their results by 1.5% and 2.9%, respectively.
As a result of mostly positive conditions, some internal efficiencies and accounting, the supermarket giant now expects to report an operating profit (EBIT) result between $710 million and $730 million. Last year, Coles’ full-year EBIT result was $1.3 billion.
Coles Group shares were last seen trading at $16.65, giving the company a market capitalisation more than $20 billion, according to Google Finance.
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