Coles year profit up, inflation impacting

"As examples, we are beginning to see our customers buying significantly more $1 Coles pasta and our $1 coffee at Coles Express has never been more popular."

Group net profit for the year ended June 26 was $1.05 billion, up from $1.01 billion the year before, after a two per cent lift in sales revenue to $39.37 billion.

Underlying earnings (or EBITDA) for the supermarket division totalled $3.02 billion in the year, a rise of 0.7 per cent, while the liquor division earned $278 million.

In the month following the end of its fiscal 2022, Coles saw further cost price inflation in its produce, bakery and packaged groceries segments.

This was variously due to the impact of recent flooding, higher wheat commodity prices and supply-chain costs.

"Consistent with our suppliers and customers, we are also seeing inflationary pressures impacting our own cost base with increasing wages, rent, fuel, supply chain and capital costs," it said.

But it has also locked the price of 1168 products across its supermarkets and online until at least January 31 next year and started cutting the prices of another 500 products. 

Coles will pay a final dividend of 30 cents, taking the total payout for the year to 63 cents, up from 61 cents in fiscal 2021.