Australian grocer Coles's first-quarter revenue mildly misses estimates

Oct 30 (Reuters) - Australia's Coles COL.AX, which reported first-quarter revenue slightly below market expectations on Friday, said competitors' promotional activity influenced consumers who were already struggling with cost-of-living pressures.

The country's second-largest grocer posted total group sales revenue of A$11.21 billion ($7.88 billion) for the three months ended September 30, missing Visible Alpha's estimate of A$11.31 billion. It reported A$10.96 billion a year ago.

Customers remained value-conscious, with continued cross-shopping across retailers and channels and increased participation in promotions and loyalty programs as households managed cost-of-living pressures, Coles said.

Rising cost of living, a higher interest rate environment and high energy costs strained household budgets, forcing consumers to increasingly opt against eating out.

As a result, sales revenue at Coles' Supermarkets division grew 3.6% to A$10.32 billion in the three months to September 30, marginally missing the Visible Alpha consensus estimate of A$10.39 billion.

First-half Supermarkets EBIT is expected to be in line with the prior corresponding period, Coles added.

($1 = 1.4221 Australian dollars)