Metcash has reported impressive results for the first half of FY25, with its food and convenience pillar standing out as a significant growth driver.
Metcash’s food business, which includes IGA supermarkets and Campbells & Convenience, delivered a standout performance, with sales (excluding tobacco) rising 18.8 per cent to $4.2 billion.
Doug Jones, Group CEO of Metcash, highlighted the division’s role in the company’s overall success.
“Our Food business is now much larger, more diversified and resilient, and positioned with significant growth opportunities.”
A key contributor to this success was the acquisition of Superior Foods in June 2024. The new addition generated strong sales growth of 6.1 per cent and secured new contracts.
“Pleasingly, Superior Foods has continued to perform well as part of the Metcash Group, winning new contracts and delivering strong sales growth.”
The IGA network also showed resilience, with supermarket sales rising 3.1 per cent (excluding tobacco). Private-label products saw a notable 9 per cent increase, while promotional items continued to drive shopper interest.
Tobacco sales declined 16.5 per cent, which was primarily driven by the acceleration in illicit tobacco trade, even as Metcash Food’s share of the legal market increased.
The Campbells & Convenience business recorded a 4.1 per cent rise in sales, reflecting increased customer numbers and a wider product range. Jones attributed this success to Metcash’s ability to adapt to consumer demand.
“Our focus on competitive pricing and quality continues to resonate with value-conscious shoppers navigating cost-of-living pressures.”
While Metcash’s food and liquor pillars demonstrated strength, the hardware division faced challenges due to weaker trade activity. Group revenue climbed 6.3 per cent to $9.6 billion, though underlying profit after tax declined by 5.5 per cent to $134.6 million.
Reflecting on the overall performance, Jones said, “Our diversified portfolio strategy continues to deliver in the face of a challenging external environment.
“Conditions were difficult for all our pillars, but particularly in Hardware where the decline in Trade activity accelerated in the second quarter.
“The independent value propositions continue to resonate with shoppers in a highly value-conscious environment, underpinned by the improved quality of those offers, including competitive pricing positions.”
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