Being on the All Ordinaries [ASX:XAO] for just under two years, Coles Group Ltd [ASX:COL] solidified itself in the top 50, which will come as no surprise considering they are one of the biggest supermarket chains in the country.
In the first quarterly report for FY21 the company announced improved results, pushing the COL share price up 2.32% to $17.61 at time of writing.
What’s Happening at Coles Group?
Back in 2018, Coles demerged from Wesfarmers Ltd [ASX:WES] to be listed on the market on 21 November 2018 at a price of $12.49.
Since then, the COL share price has risen 41.05%.
Coles now has a $22.96 billion market cap.
After solid growth through 2019 and 2020, the company recently announced their results for Q1FY21:
- ‘Group sales revenue increased by 10.5% to $9.6 billion
- ‘Supermarkets comparable sales growth of 9.7%, and online sales growth of 57%
- ‘Liquor comparable sales growth of 17.8% and online sales growth of 80%
- ‘Express convenience (c-store) comparable sales growth of 10.2%’
Online sales for both supermarkets and liquor have been huge for Coles, which in the context of this year must been seen as a symptom of the COVID-19 lockdown across the nation.
Steve Cain, Coles Group CEO, said of the results:
‘We have made further progress executing our strategy to ensure the long-term growth of Coles, particularly in digital and online. This is despite significant COVID related restrictions in Victoria related to our main Store Support Centre, our distribution centres, our meat suppliers and of course, our customers.’
Where to from here for the Coles share price?
The COL share price took a dip into the March low but rebounded strongly to move up to a new all-time high.
After a relatively weak move down over the last two weeks, the share price moved back up to where it sits at time of writing. If the momentum can stay with the move up, then the levels of $18.09 and the previous all-time high of $19.26 may come into focus.
On the downside, should the price fall back then the levels of $16.70 and $15.60 may be enough to halt a further fall.
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