Coles announces $1.1 billion profit while millions of Aussies struggle with the cost of living crisis as inflation pushes up the price of food

Coles has announced a $1.1billion profit as millions of Australians battle a cost of living crisis.

The supermarket giant’s net profit after tax, for the year to June, surged by 4.8 per cent to $1.098billion, up from $1.048billion.

Supermarket inflation also climbed by 6.7 per cent, a level higher than Australia’s broader 6 per cent consumer price index.

Despite that, Coles promised it would be focused on value as Australia’s second largest supermarket chain after Woolworths.

‘Cost of living pressures are likely to remain for many Australian households and we will continue to focus on delivering trusted value,’ it said on Tuesday.

But Coles also hinted there were customers with savings able to pay more for premium products. 

‘At the same time there are still customers looking for premium offerings and we will continue to innovate across our exclusive brand portfolio and tailor our ranges to meet the full range of customer needs,’ it said.

Revenue from the supermarket operations climbed by 6.1 per cent to  $36.746billion but liquor turnover was flat at $3.61billion.

Shareholders have benefits from higher dividends, getting back 66 cents per share compared with 63 cents in 2021-22.