Coles posts strong half-year profits, up 11.4 per cent to $616 million 

The half-year financial report to January 1, 2023, painted a picture of solid sales growth despite continuing supply chain challenges for the supermarket giant. 

Steve Cain, the outgoing CEO of Coles Group, said as one of Australia’s most trusted brands, Coles’ success came down to restricting inflation as customers face increasing economic pressures.

“We continue to make progress on growing long-term shareholder value by executing our strategy whilst recognising the significant ongoing challenges facing many of our customers and suppliers. 

“Coles continues to be one of Australia’s most trusted brands and for our customers, we delivered hundreds of DROPPED & LOCKED prices to help keep inflation below the national average, an improved Flybuys program, and free glassware in Supermarkets, alongside our popular Price Drops campaign in liquor. 

“The good news is that supplier cost inflation is starting to ease in the third quarter, particularly in produce,” he said. 

Coles stated that selling its Express fuel and convenience business to Viva Energy for $300 million in late 2022 will allow the supermarket giant to focus on its profitable omnichannel and liquor business. 

Key metrics for the Express business show that both c-store and fuel sales were on the up as fuel sales and foot traffic increased coming out of COVID-19 lockdowns as compared to 1H22.

Going forward, Coles warns shoppers will likely cut spending as cost of living pressures, such as mortgage payments and energy prices, continue to rise.  

“We are well positioned to navigate the current macro environment and as we look to the future, we expect improving availability, population growth and moderation in out of home dining, which has been elevated post-COVID-19, to positively impact the business and provide further opportunities for growth,” they stated. 

To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top