Coles says there are some key highlights in its results:

• Supermarkets sales revenue of $36.7 billion for the year increased by 6.1% on the prior year, with growth in the second half up 7.7% over the prior corresponding period compared to 4.6% in the first half. 
• Gross retail sales of $38.0 billion for the year increased by 6.6% and comparable sales grew by 5.8%. 

It says sales growth was delivered through the ‘DROPPED & LOCKED’ value campaigns and the successful execution of trade plans, including festive events such as Easter, Christmas and Mother’s Day.

Volumes improved throughout the year, with volume growth moderately positive in the second half.

Volume growth in the second half was positive across all major categories, with the exception of health and home, which continued to cycle elevated volumes in the second half of FY22 as a result of COVID-19 (Omicron) and the flu season.

Inflation and deflation

Coles says in the fourth quarter, total Supermarkets price inflation of 5.8% continued to moderate (6.2% in the third quarter) with inflation in the fresh category of 2.3% (4.1% in the third quarter).

In the fresh category, deflation in fresh produce was driven by vegetables, particularly cucumbers, broccoli and capsicum, while inflation in meat, deli and seafood moderated largely due to red meat.

However, bakery inflation remained elevated due to higher wheat commodity prices.

In the packaged category, dairy inflation increased as a result of an increase in the farmgate milk price. Higher commodity prices, such as eggs and oil, also impacted the category.

The level of supplier cost price increase requests remained elevated but was lower compared to the first half, with the main drivers of the requests relating to raw materials such as wheat, dairy and sugar, and utilities.