By Stuart Condie


SYDNEY--Coles Group Ltd. said its third-quarter sales were lifted 3.6% and said it expects supplier cost inflation seen over the period to continue into its next fiscal year.

The Australian supermarket-chain operator on Thursday reported gross retail sales for the 12 weeks to March 27 of 9.30 billion Australian dollars (US$6.62 billion), up 3.6% on-year on a comparable basis. Supermarkets sales rose 3.9% to A$8.23 billion.

Coles said that suppliers were being faced with increased raw material, commodity, shipping and fuel costs. It expects that to continue through the remainder of its 2022 fiscal year and into FY 2023.

It estimated A$30 million of costs from the loss of stock, asset write-offs and increased freight costs through rail and road disruptions due to the heavy rains that inundated swaths of Australia's eastern seaboard.

Coles was forced to temporarily close 130 stores in the period and said the costs didn't include the loss of profits. It said it is working through an insurance claim process.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

04-27-22 1912ET