Annual profit rises 2.1 to A1.13 bln
Co raises final dividend amid strong performance
Shares hit twoyear high, last up 2.4

Reuters Australian grocer Coles reported annual profit ahead of expectations on Tuesday, driven by robust supermarket sales and enhanced inventory control to curb theftrelated losses, sending its shares to a twoyear high.

The country39;s secondlargest grocer bolstered its competitive position through privatelabel offerings and ecommerce sales, while moderating inflation fostered a more stable pricing environment and aided in attracting pricesensitive customers.

Shares in the Australian supermarket operator were up 2.4, as of 0035 GMT, after rising as much as 3.2 earlier in the day to A19.050, their highest since August 2022. The benchmark SPASX 200 index advanced up to 0.3.

The grocer reported a 2.1 rise in net profit after tax from continuing operations to A1.13 billion 765.01 million for the year ended June 30, beating a Visible Alpha consensus estimate of A1.08 billion.

EP Capital retail analyst Phillip Kimber said the figures were amplified by an extra trading week, which yielded higherthantypical gains for the grocer.

However, with the softer start to FY25 and higher transformation costs our initial thoughts are for 12 minor downgrades to VA consensus estimates in FY25, Kimber wrote in a client note.

Coles also noted a trend of moderating dairy inflation and fewer supplier price hikes, allowing more stable pricing for customers…