Coles Says First-Quarter Sales Revenue Rises, Inflation Moderates

By Mike Cherney

SYDNEY--Australian grocer Coles, one of the country's main supermarket chains, said sales revenue in the fiscal first quarter rose 4.7% and that food-price inflation moderated overall.

The chain said supermarket sales revenue rose to nearly 9.2 billion Australian dollars (US$5.8 billion) in the 13 weeks to Sept. 24. Liquor sales revenue rose 1.8% to A$851 million. Overall, sales revenue from continuing operations rose 6.7% to about A$10.2 billion.

Looking ahead, the grocer said early second-quarter sales revenue growth in supermarkets and liquor is broadly in line with the first quarter. It also said that technology solutions to limit stock loss are expected to be operational in over 250 of the most impacted stores by the end of the calendar year.

Coles said total supermarkets price inflation declined to 3.1% from 5.8% in the fiscal fourth quarter, due to deflation in the fresh category. Excluding tobacco and fresh, inflation continued to moderate but remained elevated at 5.7% due to higher milk and commodity prices, including cheese, eggs and oil.

Coles said the fresh category, including produce, meat and bakery experienced deflation of 2.3% due to elevated prices last year when severe flooding and cool weather impacted growing conditions.

Write to Mike Cherney at [e-mail]

(END) Dow Jones Newswires

10-25-23 1807ET