Shares in Coles Group, Australia’s second largest grocer, saw a decline as much as 6.73% to A$16.07.

This marks the steepest intraday fall since March 2020.

The grocer revealed a net profit after tax of A$1.10 billion for FY23.

While this is a 4.8% rise from the previous year’s figures, it falls short of the Visible Alpha consensus estimate of A$1.13 billion.

Coles (ASX:COL) also announced a final dividend of 30 Australian cents per share, consistent with the corresponding year.

Despite this, Coles' share price has dropped 4% since the beginning of June.

The FY23 result, according to E&P Financial, will likely exert further pressure on the share price.

While supermarket volumes in the early part of FY24 have been modestly positive compared to the corresponding period, there have been early signs of customers moving away from dining out, according to Coles (ASX:COL).

The stock reached its lowest level since November 4, 2022 and as of the last close, the stock has risen 3.1% year to date.

Coles Group (ASX:COL) is Australia’s second-largest grocery store operator.