Coles Liquor has announced a 2.3 percent increase in sales revenue for the 2024 financial year, with a normalized growth rate of 0.5 percent. The company’s growth was constrained by a challenging liquor market and reduced discretionary spending due to economic pressures.
The report highlights that Coles Liquor’s sales growth was also affected by the transition away from less profitable bulk sales and adjustments in promotional strategies across third-party eCommerce channels throughout the year. Sales were notably subdued in the latter half of the year, though there was some improvement in the trajectory, with fourth-quarter revenue declining by 0.4 percent on a normalized basis compared to a 1.9 percent decline in the third quarter.
The division saw robust performance in digital platforms and eCommerce, with revenue increasing by 9.2 percent (normalized). This growth was driven by the expansion of on-demand delivery services, which now include Menulog in over 400 stores, alongside existing partnerships with DoorDash and Uber Eats in more than 600 stores.
Coles Liquor also expanded its exclusive brands portfolio by adding 244 new lines, focusing on growth categories such as craft beer and Ready-to-Drink options, and offering products across various price points.
For FY24, overall sales revenue increased from $3.6 billion to $3.7 billion, reflecting a 53-week year compared to the previous year’s 52 weeks. However, reported EBITDA fell from $279 million to $261 million.
CEO Leah Weckert commented on the year’s performance, acknowledging the financial strain on households and the company’s efforts to deliver value through its supermarket, liquor, and online offerings. She highlighted advancements in availability and quality, improvements in loss prevention, and progress in digital capabilities, including the completion of the second Automated Distribution Centre (ADC) and two Central Fulfillment Centres (CFCs).
Looking forward, Weckert expressed confidence in Coles’ strategic direction, emphasizing the anticipated benefits from the ADCs and CFCs, along with a commitment to maintaining value through everyday low prices, promotions, and Coles Own Brand. She also noted that the first eight weeks of FY25 have seen a 1.4 percent decline in liquor sales revenue, impacted by a CrowdStrike outage in July and continued adjustments away from bulk sales.
The group completed 97 store renewals, opened 45 new stores, and closed 10 stores across its Liquorland, Vintage Cellars, and First Choice banners during FY24. This includes the acquisition of 20 stores in Tasmania, bringing the total portfolio to 992 stores by the end of the period.
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