Supermarket retailer Coles delivered its annual results this morning, reporting a net profit of $1.128 billion for its 2023-24 financial year ended June 30, citing stronger retail food and grocery sales as a key factor.

Revenue from continuing operations of $43.6 billion was up 4.4 percent, with growth in supermarkets sales revenue of 4.3pc and liquor sales revenue of 0.5pc. Supermarkets sales revenue of $39 billion increased by 6.2pc on the previous year.

Supermarket price inflation in the past year fell to 2.5pc, down from 6.7pc the year before, Coles said. In the fourth quarter ending 30 June, supermarkets price inflation moderated to 1.5pc (third quarter: 2.2pc). Fresh foods inflation of 1.3pc in the fourth quarter was largely driven by fresh produce which moved into inflation, including bananas and tomatoes, while meat remained in deflation, reflecting lower livestock prices and promotional activity.

Coles group chief executive Leah Weckert said the financial pressures on households and families had been front of mind for the company this year, as it had endeavoured to deliver value across its supermarket, liquor and online offerings to help customers balance household budgets.

“At the same time, we have worked hard to deliver improvements in availability and quality, made significant inroads in addressing loss, accelerated our digital offering, continued to maintain a strong focus on costs and completed the construction of our second ADC and both our CFCs,” she said.

Supermarket sales revenue growth was driven by a positive customer response to Coles ‘Great Value, Hands Down’ seasonal value campaigns, strong growth in eCommerce and improvements in availability, she said.

“Providing value to our customers is a key priority for the business. This was delivered through our seasonal value campaigns, with price investments made in key categories such as meat, vegetables and pantry staples, and thousands of weekly specials and every day low prices,” Ms Wechert said.

Reflecting the growing consumer trend in demand for heat-and service type ready meals, Coles expanded its convenience offering with Coles Kitchen Meals range now offering more than 300 products.

eCommerce sales grew by 30.1pc during the year, with penetration (percentage of all shoppers using online) increasing to 9.4pc.

During the year, Coles completed 50 store renewals, opened 12 new stores and closed two stores, taking the total network to 856 supermarkets across Australia.

Coles shares jumped 1.9pc or 35c on the financial year results this afternoon, closing at $18.81.

• Major retail competitor Woolworths announces its annual results tomorrow