Coles Q1 results improve on inflated prices

by | Oct 26, 2022 | Australia, News

Coles announced an increase in group sales of 1.3% to $9.9bn for the first quarter of 2023, with supermarket sales increasing 1.6% to $8.8bn. Comparable supermarket sales increased 2.1%, while supermarket eCommerce sales penetration increased to 7.6% from 7.4% in Q4 2022. The growth was delivered despite the prior year comparables being affected by increased sales due to COVID lockdowns in NSW, ACT and Victoria and increased eating out in 2023. Volumes were impacted from cycling elevated volumes in the prior corresponding period and declines in fresh produce availability because of floods.

Supermarkets price inflation was 7.1% for Q1 2023 compared to 4.3% in the previous quarter. Fresh inflation was 8.8% and continued to be driven by increased wheat prices affecting bakery and fresh produce – particularly fruit such as berries and bananas. Coles said raw material, commodity, shipping and fuel costs remained the key factors of supplier input cost requests in the first quarter affecting inflation in packaged products.