By Mike Cherney

SYDNEY--Australian supermarket chain Coles Group Ltd. said its statutory net profit fell in the fiscal year ended in June, but sales revenue rose as consumers spent more time at home during the coronavirus pandemic.

Coles said statutory profit was 978 million Australian dollars (US$705 million), a drop of 32%. However, the company said that was impacted by new accounting rules regarding leases, one-off items and its demerger from former parent Wesfarmers Ltd. Profit from continuing operations, which Coles said better reflects the underlying business, was A$951 million, a rise of 7%.

Statutory revenue from ordinary activities fell by 2% to A$37.8 billion, reflecting a change in how fuel sales are recognized. On an underlying basis, sales revenue rose by 7% to A$37.4 billion, Coles said. Underlying group earnings before interest and tax was A$1.4 billion, up 5%.

The company declared a final dividend of 27.5 Australian cents per share, a nearly 15% rise compared to the prior year's final dividend. That brings the full-year payout to 57.5 Australian cents.

"For our many shareholders, we have successfully executed the first year of our strategic plan, restored group profit growth for the first time in four years, and are on track to grow long-term shareholder value," said Chief Executive Steven Cain.

Looking into fiscal year 2021, which is currently underway, Coles said in the first six weeks, comparable supermarket sales are broadly in line with levels achieved in the fiscal second half. However, it said there is significant variation between states and store locations given uneven coronavirus restrictions around Australia. 



  Write to Mike Cherney at mike.cherney@wsj.com