What can owners of Coles shares expect at next week's AGM?

There will be plenty on shareholders' minds at the AGM.

| More on:
A company manager presents the ASX company earnings report to shareholders at an AGM.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Coles Group Ltd (ASX: COL) shares have sold off sharply in recent weeks. They have slipped from mid-September highs of $19.22 apiece to currently trade at $17.55 apiece.

Shareholders in the supermarket giant may have a few key points in mind as the company prepares for its annual general meeting (AGM) next week.

Here's a look at what owners of Coles shares might expect at the AGM.

Created with Highcharts 11.4.3Coles Group PriceZoom1M3M6MYTD1Y5Y10YALL1 Nov 20235 Nov 2024Zoom ▾Nov '23Jan '24Mar '24May '24Jul '24Sep '24Nov '24Jan '24Jan '24Apr '24Apr '24Jul '24Jul '24Oct '24Oct '24www.fool.com.au

Coles shares prep for AGM

While Coles has already disclosed its FY24 results, the AGM will likely recap the company's major achievements over the financial year.

Coles also reported an increase in revenue for its first quarter of FY25, driven by its Supermarkets division.

Overall, group revenue rose by 2.9% to $10.55 billion, with a 3.5% lift in supermarket revenue to $9.5 billion.

Notably, e-commerce in the supermarket division surged by 22.4%, a key area of growth as consumer shopping habits evolve.

Beyond sales, Coles has focused on brand development, with its "Exclusive to Coles" range growing in appeal.

The supermarket also announced a major investment in automated distribution centres (ADCs) in Victoria. More on this a bit later.

These highlights will likely receive attention at the AGM as management reiterates its strategic roadmap. But it is not certain that they will directly impact Coles shares.

Insights into FY25

For investors, the AGM will be an opportunity to hear how Coles has fared so far in FY25. Early trading data indicates that Supermarkets sales growth has kept pace with Q1.

Management says this was supported by seasonal promotions and various campaigns.

Its liquor division, on the other hand, faced a sales revenue slowdown, with comparable sales dipping by 4.4%.

Management may provide more details on cost control measures and efficiency initiatives that are in place to counter rising operational costs.

The focus on cost-of-living pressures, which remain a concern for many consumers, will likely be reinforced with updates on pricing strategies and promotional activities.

Given where it and its rival supermarket peers have been in the news cycle lately, this could be received well and impact Coles shares.

Updates on growth plans

Coles' investment in its supply chain transformation is one of the more significant developments shareholders might be interested in hearing more about.

The company committed $880 million to a new automated distribution centre in Truganina, Victoria.

It is being designed in partnership with WITRON Australia and is expected to handle 4.6 million cartons weekly.

That's 920,000 cartons every single workday.

The AGM is also a chance for Coles to elaborate on its environmental, social and governance (ESG) initiatives, such as its drive for more sustainable packaging and reducing food waste.

It mightn't be the appeal of all, but there will be many owners of Coles shares seeking out this information.

Coles shares takeout

Coles shares have been weak leading into the company's annual meeting next week. After a big year, shareholders will undoubtedly have plenty to look forward to from management.

In the last 12 months, the stock is up 14%.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Stock market crash concept of young man screaming at laptop on the sofa.
Share Fallers

Guess which ASX 200 stock just crashed 31% on slumping sales

The $1.3 billion ASX 200 stock is getting hammered today.

Read more »

Photo of a happy couple with their new car and car keys.
Consumer Staples & Discretionary Shares

Up 55% this year, why Macquarie believes Eagers Automotive shares can charge higher

Eagers set to capitalise as BYD’s Australian sales surge.

Read more »

Two race cars on a track at sunset.
Consumer Staples & Discretionary Shares

Down 36% in a year, this ASX 300 stock is one to watch

After a major sell-off, this high-performance cooling specialist might be gearing up for a turnaround.

Read more »

Two laughing young women hold shopping bags and ride an escalator up to another level in a Scentre Group shopping centre.
Broker Notes

3 ASX consumer sector shares to buy in July: expert

A leading expert has named its top 3 picks.

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

Person taking out a slice of pizza from a pizza box.
Consumer Staples & Discretionary Shares

Why now is the time to buy the big dip on Domino's shares

Down 46% in a year, a leading expert forecasts brighter days ahead for Domino’s shares.

Read more »

Three people sit on safe cheering with pizza on table
Consumer Staples & Discretionary Shares

Food fight! Have Guzman Y Gomez shares outperformed Domino's since ASX debut?

Lets find out who’s topping the menu for investors

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Consumer Staples & Discretionary Shares

Here's the Coles dividend forecast from top analysts through to 2029

Can this defensive business provide pleasing payouts? Let’s take a look…

Read more »