Overview
- Coles reported Q1 group revenue of about $10.96 billion, with supermarket sales up roughly 4.8% to $9.97 billion for the 13 weeks to September 28, outpacing Woolworths’ slower growth for a seventh consecutive quarter.
- Supermarket eCommerce sales at Coles jumped 27.9% to about $1.3 billion, reaching a record 13.3% of supermarket sales and underpinning transaction growth from new and more frequent shoppers.
- Tobacco revenue fell approximately 57% and now contributes under 2% of sales, which Coles attributed to new regulation and an expanding illicit market.
- Coles’ liquor sales declined about 1.4% to $842 million as the company accelerated store conversions to Liquorland, with 112 outlets now switched and a target of 160 by year-end.
- Food-price inflation moderated to 1.2% excluding tobacco as fresh produce prices eased on abundant supply, though Coles flagged rising beef and lamb costs outpacing shelf prices; Woolworths said recent results remain below expectations as it works to rebuild price trust and execution before Christmas.