- Earnings of Australia's top supermarket chains are likely to show constricted spending presenting a challenging outlook for Woolworths and Coles, as consumers deal with painfully high mortgage rates and sticky inflation.
Consumers are becoming more discerning by trading down in items such as food by choosing lower-priced items and more at-home consumption, UBS analysts wrote in a note. "With cost-of-living pressures remaining a hot topic, I expect that the profit margins of the big supermarket chains will again be under the microscope," said Tim Waterer, KCM Trade's chief market analyst.
Net profit after tax from continuing operations for fiscal 2024 is expected to come in at A$1.10 billion for Coles, slightly higher than A$1.04 billion in the prior year, according to Jefferies' estimates.