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Coles Shares Fall After Earnings Warning and Collapse of Greencross Sale
Coles shares fall after chief executive Leah Weckert flags flat earnings and the Greencross sale collapses.
Key points
- Coles shares dropped 7.6 per cent on Friday and another 2 per cent on Monday.
- Chief executive Leah Weckert flagged flat earnings for the half, after rival Woolworths outpaced Coles in the supermarkets race.
- Greencross, TPG's pets-and-vets business, was meeting its limited partners last week to discuss its own performance.
Why it matters. For Coles shareholders, the flat earnings outlook and the collapsed Greencross sale are the immediate concerns raised in the article.
Coles shares fell 7.6 per cent on Friday and a further 2 per cent on Monday after chief executive Leah Weckert flagged flat earnings for the half. The article says rival Woolworths has outpaced Coles in the Australian supermarkets race, a shock to shareholders delivered last week. Greencross, TPG's pets-and-vets business that the article calls Weckert's jilted M&A target, was also meeting its limited partners last week to discuss its own performance.
Latest updates
Coles Shares Fall After Earnings Warning and Collapse of Greencross Sale
Coles shares fell 7.6 per cent on Friday and another 2 per cent on Monday after chief executive Leah Weckert flagged flat earnings for the half. The report said Coles was overtaken by rival Woolworths in the supermarket race. The collapse of the roughly $4 billion sale of Greencross to Coles has left Greencross's owners looking for other options. Greencross chief executive Lucas Barry has told limited partners that the business is growing. The source does not show the detailed financial figures behind either company's claims, so the growth outlook is not independently verified.