Australian consumer firms set for worst half-year since 2018

Graincorp

30/06/2022 01:14

** Australian consumer index  .AXSJ  set to drop 3.6% in H1,
set for their first half-yearly drop since H2 2018
    ** Decline in the sub-index modest, compared with a 10% fall
in the ASX 200 benchmark  .AXJO  
    ** Major supermarket chain Woolworths Group Ltd  WOW.AX  set
to lose 5% in H1, its worst half-year since June 2016
    ** No. 2 grocer Coles Group Ltd  COL.AX  is on track for a
marginal 0.4% gain in H1 
    ** Smaller rival Metcash  MTS.AX  set for a 5.6% loss this
HY
    ** "We expect rising food inflation to lift sales and
earnings for supermarkets" - analysts at brokerage Citi 
    ** Retail sales in the first five months of HY have either
met or beaten market expectations as inflation has not hampered
consumer demand  urn:newsml:reuters.com:*:nL1N2YG02Q 
    ** Analysts at Jefferies say inflation will continue to
constitute a sales tailwind for food sales in the forthcoming
months
    ** Best performer in the index over the half-year is
Graincorp  GNC.AX , boosted 14% by manifold jump in earnings and
forecast due to higher demand for Australian grains amid supply
concerns originating from Ukraine war  urn:newsml:reuters.com:*:nL3N2X24LI 
    ** Worst performer in the index is Bega Cheese  BGA.AX , set
to shed 32% this half-year, its worst since 2H 2018

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))