Which delivered better returns in 2024: Woolworths, Metcash, or Coles shares?

We review the performance of these ASX supermarket shares.

| More on:
Family shopping for groceries

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

It's fair to say that Australia's inflation pain has been most acutely felt in the aisles of the supermarket giants, Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Metcash Ltd (ASX: MTS).

Many Australian consumers have felt taken aback by the level of price increases for everyday items.

Amid a public outcry over prices and profits, the supermarkets were heavily scrutinised in 2024.

There was much discussion about the high level of concentration and, thus, potentially uncompetitive nature of the supermarket sector, with Coles, Woolworths, and Metcash commanding 80% market share.

The Federal Government directed the Australian Competition and Consumer Commission to begin an inquiry into the supermarkets' pricing practices and the relationship between wholesale and retail prices.

The Supermarkets Inquiry 2024-25 will publish its report by 28 February.

The Federal Government also conducted its own inquiry into the fairness of supermarkets' payments to suppliers, such as farmers.

The Independent Review of the Food and Grocery Code of Conduct found there was a significant power imbalance between the supermarkets and suppliers.

It recommended making the voluntary code mandatory and introducing significant penalties for breaches to improve protections for growers and other suppliers.

Amid all this, all three supermarkets reported high profits in FY24.

Coles reported an underlying net profit after tax (NPAT) of $1,210 million in FY24, up by 4.1%.

Woolworths reported NPAT before significant items of $1,711 million, down 3%.

Significant items totalled $1.6 billion and were primarily related to an impairment in the New Zealand food business impairment and a mark-to-market loss on Endeavour Group Ltd (ASX: EDV).

Metcash reported an underlying NPAT of $282.3 million, down 8.2% due to lower hardware earnings and increased corporate costs.

In order to determine whether Metcash, Woolworths, or Coles shares delivered better returns for investors last year, let's examine their share price growth and dividend income.

On share price growth, Coles shares outperform

Among the ASX supermarket shares, Coles outperformed Woolworths and Metcash, as this chart shows.

Not only did Coles outperform its peers, it was the only ASX supermarket stock to gain value in 2024.

The Coles share price increased by 17% to close out the year at $18.89 per share.

The Woolworths share price dropped 18% over the 12 months to finish at $30.49 per share.

The Metcash share price also declined in 2024. Metcash shares fell by 11% to close at $3.10.

By comparison, the market benchmark S&P/ASX 200 Index (ASX: XJO) rose by 7.49% in 2024.

On dividend payments, Metcash shares win

In 2024, Coles shares paid an interim dividend of 36 cents per share in March and a final dividend of 32 cents per share in September.

This totalled 68 cents in fully franked annual dividends for Coles shareholders.

Woolworths shares paid an interim dividend of 47 cents per share in April.

It also paid a final dividend of 57 cents and a special dividend of 40 cents per share in December.

This brought total annual dividends to $1.44 per share, partially franked.

Metcash paid an interim dividend of 11 cents per share in January and a final dividend of 8.5 cents per share in August.

So, Metcash shares investors received 19.5 cents in total annual dividends, with full franking.

So, in dollar value terms, Woolworths shares win.

But what about dividend yield terms, which are much more important to investors?

Based on the closing values on 31 December, Coles shares paid a dividend yield of 3.6%.

This compares to 4.7% for Woolworths shares and 6.3% for Metcash shares.

So, Metcash shares delivered the best income yield for ASX supermarket shares investors.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bronwyn Allen 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

Young girl drinking milk showing off muscles.
Dividend Investing

Up 41% in 2025, how this ASX 200 dividend stock is primed for 'continuing growth'

A leading expert expects ongoing growth from this high-flying ASX 200 dividend stock.

Read more »

Happy couple doing online shopping.
Consumer Staples & Discretionary Shares

What are Macquarie's top 3 ASX stock picks in the consumer sector?

These are the brokers top picks from this side of the market.

Read more »

Anxious people gambling
Earnings Results

Star Entertainment share price leaps…then crashes on first day of trade since February

Star Entertainment shares are trading on the ASX once more today. And they’re plenty volatile!

Read more »

Family shopping for groceries
Dividend Investing

Should I buy Woolworths shares for the 4% dividend yield?

Woolworths shares even delivered two fully franked dividends during the pandemic-addled year of 2020.

Read more »

A person in the dark background of a casino gambling room places his hands either side of a large pile of casino chips.
Consumer Staples & Discretionary Shares

How will the latest news from Star Entertainment affect your ASX shares?

The casino operator's biggest shareholder will subscribe for a third of Bally's $300 million takeover offer.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Consumer Staples & Discretionary Shares

Why Macquarie forecasts a 92% upside for this beaten down ASX 200 stock

Macquarie expects a BIG turnaround for this ASX 200 stock in the months ahead.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Consumer Staples & Discretionary Shares

Should I buy Coles shares today amid the Trump tariff market tantrum?

Coles shares have smashed the benchmark returns over the past year. Can this continue?

Read more »

A gambler at a casino bets a pile of chips on one number
Consumer Staples & Discretionary Shares

Own Star Entertainment shares? Here are the takeover details and when you'll get to vote

Star Entertainment has released details of the takeover deal with US casino giant Bally's.

Read more »