Coles reported a profit of over $1.1 billion for the financial year 2024, marking a 2.1% increase from the previous year, driven by a surge in grocery revenue amid rising household costs.

This profit increase was largely attributed to robust supermarket sales and improved inventory management that effectively reduced theft-related losses.

Theft at Coles has been a significant issue, primarily linked to organized crime targeting high-value items for resale.

In response, Coles has implemented measures to combat theft and improve cost control, which have positively impacted their earnings.

Additionally, the company saw a notable increase in online shopping and sales of its own brand groceries, reflecting changing consumer preferences.

Coles CEO Leah Weckert anticipates continued consumer demand for home cooking, which is expected to further benefit the supermarket's financial performance.

Supermarkets were Coles' strongest segment, with revenue from supermarket sales increasing by 4.3% to over $39 billion, supported by a shift towards at-home dining.

Meanwhile, revenue from Coles' liquor businesses saw a modest increase of 0.5% for the 2023-24 period, with liquor sales remaining stable at $3.7 billion.

Coles' shares reached a two-year high, reflecting a positive market response to the company's financial results.

Despite the positive results, critics, including the Greens party, have accused Coles of price gouging, although the company argues that revenue alone does not support this claim.

The political climate remains tense for supermarkets, with increased scrutiny from politicians amid rising cost-of-living concerns.

Inflation in supermarket prices has eased, with growth excluding tobacco dropping to 1.5% in the first half of 2024, down from 2.9% in the previous half.