Supermarket operator Coles has posted a surge in revenue from its groceries business, underpinning an 8.3% rise in annual profit to $1.1bn even as shoppers grappled with rising household costs.
Australia’s second largest supermarket chain significantly expanded its profit margins from its supermarket business to 5.2% from 4.8% a year ago, and recorded a jump in the number of people shopping online as well as those buying its own brand groceries.
Coles attributed a big lift in supermarket sales to $39bn to its seasonal campaigns, collectibles programs, trade events such as Christmas and Easter, as well as sales improvement from its digital channels.
Revenue derived from its liquor businesses was up by a modest 0.5% in 2023-24.
The strong boost to its supermarket profit margins could attract political attention, given relentless price rises for essential items, from food to housing and utilities, have emerged as a central political issue for the next federal election, as many voters weigh up which party is best placed to ease cost-of-living pressures.
Elevated prices for essential items have also been a large driver of inflation in recent years.
Coles and its bigger rival Woolworths were the main focus of a Senate inquiry held earlier this year that scrutinised prices paid to suppliers, including many Australian farmers.
The supermarket sector is also subject to a 12-month probe by the competition regulator.
More details soon …
