Coles Group Limited (COL)
All research reports and stock updates for Coles Group Limited.
Stock Updates
Research Reports
Inflation has peaked
Supermarket inflation has peaked and will fade across the year and into 2024. We lower our recommendation to Hold as consumers tighten their belts.
Milk shake up
Coles has acquired two automated milk processing facilities for $105m that currently supply COL with its own-brand milk.
Air pocket
Coles’ first quarter sales hit an air pocket with growth of 1.3%, an aberration compared to what should transpire for the rest of FY23f.
Bangers and mash
Coles Group will benefit from the disappearance of the substantial COVID-19 costs it has worn for the past two years. Sales are up, boosted by inflation, but volumes are beginning to slip as customers feel the pinch.
A pinch of inflation
So far, as inflation heads higher in Australia, there has been little impact on volumes given strong household finances.
Up Up, for costs
Coles reported a fairly stable result in what could be characterised as a chaotic period. It has managed its costs well and stabilised market share in supermarkets. Higher food inflation is beginning to feature, and this will push sales up, but cost management generally is now a key factor to watch.