Woolworths reported 1Q23 sales growth of 1.8%. This low rate of growth simply reflects a high hurdle from lockdowns over the past two years. We expect sales growth to recover to 5%-6% from here and the growth gap to Coles will narrow. The market remains orderly around price inflation, which will support earnings growth. Moreover, the headwinds in NZ should ease soon and margins are likely to recover in calendar 2023.