(Reuters) -Australia's second-largest grocer, Coles Group Ltd ( CLEGF ), on Wednesday reported a 3.4% rise in third-quarter revenue, driven by robust performance in its supermarkets division as consumers responded favourably to value campaigns and promotions.

Shares of the company rose as much as 0.8% to hit their highest level since April 23 as of 0115 GMT.

Australian household spending rose for a fifth consecutive month in February, but the gains were slim and overall growth remained modest as consumers struggled with cost-of-living pressures.

The company recorded a 3.7% increase in third-quarter supermarket sales revenue to A$9.4 billion ($6.00 billion), spurred by value-conscious consumer behaviour, strong promotional campaigns and a surge in online sales.

Excluding tobacco, supermarket revenue grew by 4.7%. Coles attributed this growth to successful value offerings such as its Summer value campaign and trade events over Australia Day and Valentine's Day.

The country's retail sales rose modestly for a second successive month in February as a long-awaited cut in interest rates, combined with slower inflation, boosted consumer sentiment and spending power.

Coles posted total group sales revenue of A$10.38 billion for the quarter, a rise from A$10.03 billion in the previous year.

The company reported modest supermarkets inflation at 1.5%, with higher costs in fresh meat and produce balanced by deflation in health and home categories. Severe weather events, including Queensland flooding and Cyclone Alfred, disrupted fresh produce supply, leading to localised price pressures, Coles added.

Coles also noted a 25.7% leap in e-commerce sales to A$1.1 billion for the quarter, with penetration increasing to 11.3% due to enhancements to Coles' app and website, which expanded delivery services.

Additionally, the grocer reported a 3.4% rise in third-quarter liquor sales revenue to A$813 million, helped by 31 new stores opened over the last 12 months.

($1 = 1.5672 Australian dollars)