Coles-Myer has record pre-abnormal profit

The figure is up 9.3% on last year, on the back of a 7.7% increase in sales for the 53 weeks to the end of July.

CEO, Dennis Eck, says the result is pleasing.

"The great strength of CML is its diverse portfolio which enabled it to deal with a shortfall in one of the groups. As an indication of our confidence we have increased the final dividend, by one cent, to A13.5 cents per share, bringing the total to A27 cents for the year."

Coles-Myer says restructuring costs - primarily Katies, World 4 Kids and Kmart New Zealand - and the repositioning of Myer Direct to an e-tail business, coupled with the GST and Y2K costs contributed to an after tax abnormal of A$183 million.

CML has also announced a market buy-back programme of up to A$220 million, and a review of its successful shareholder discount scheme.

Mr Eck says the scheme forms a valuable part of the company's marketing mix, and since its introduction in 1993 shareholder numbers have increased nine-fold from around 62,000 to 565,000, with 400,000 holding between 500 and 1000 shares.

"Given this dramatic growth we were approaching the day when the program would not be a net benefit to the company or its shareholders overall, and the growing administrative burden could see it become a net cost. This review will ensure the program remains a net benefit for the company and all shareholders, big and small."

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