Coles posts $1.1bn profit as grocery costs rise in Australia

Supermarket giant Coles has posted an annual profit of $1.1 billion, mostly due to a staggering surge in revenue in its grocery business.

As Australian shoppers battle rising supermarket prices and cost-of-living pressures, the second-largest grocery chain in the country saw an 8.3 per cent rise in profit for the 2024 full year.

Coles lifted its profit margins in the supermarket business from 4.8 per cent the previous year to 5.2 per cent, which was recorded at $39 billion.

It also noted an increase in shoppers choosing to buy online and a jump in customers opting for its home-brand groceries.

The supermarket credited this revenue jump to a mix of seasonal campaigns, collectibles, major trading events such as Christmas and Easter and online sales.

It also reported a slight 0.5 per cent rise in liquor sales to $3.7 billion.

Continuing operations also saw a 7.6 per cent in sales revenue.

Leah Weckert, Coles Group CEO, said the company is keenly aware of the cost-of-living crisis impacting shoppers.

“The financial pressures on households and families have been front of mind for us this year and we have endeavoured to deliver value across our supermarket, liquor and online offerings to help customers balance the household budget,” Weckert said.

“At the same time, we have worked hard to deliver improvements in availability and quality, made significant inroads in addressing loss, accelerated our digital offering, continued to maintain a strong focus on costs and completed the construction of our second ADC and both our CFCs.”

This year also marks 110 years since Coles first opened doors in Smith Street in Collingwood, Victoria.

It comes as both Coles and competitor Woolworths were subject to a Senate enquiry grilling over price gouging, high profits and conduct towards suppliers.

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