Initiation on Australian supermarkets and liquor

Inflation the crucial ingredient

Published: 06 July 2021

We have a positive outlook for both revenue growth and profit margins for Coles, Metcash and Woolworths. Higher food inflation is likely to show through and offset the pressures from lower population growth and lapping COVID-19 induced sales growth. Higher inflation is not simply transitory, but has been evident since 2019. The market structure in both supermarkets and liquor add to the investment appeal. We also see a strong recovery for Endeavour Group and can make acquisitions in Hotels.

Not already a member?
Join now to get all the latest reports in full and stay informed.

Get started