Supermarket giant Coles reports profit slide even as earnings lift

Supermarket giant Coles has reported an 8.4 per cent fall in half-year profit after tax to $589m.

The result came despite a 5 per cent increase in earnings to $148m and a 3 per cent jump in revenue to $22.3bn.

The retailer, which has come under increased scrutiny in recent months amid allegations of price gouging, also declared an interim dividend of 36c a share, fully franked.

Speaking to media on Tuesday, Coles boss Leah Weckert recognised the business faced significant pressure due to cost-of-living challenges.

“We acknowledge the scrutiny and debate facing supermarkets right now, particularly as customers face ongoing budget pressures,” Ms Weckert said.

“As the year continues, Coles will continue to work hard to deliver value when Australians need it.”

Ms Weckert said the business’s investments in new automated distribution and customer fulfilment centres had weighed on profitability, while profits for continuing operations were broadly flat.

More to come

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