Metcash has reported a 6.1 per cent rise in total sales for FY24 but expects “challenging” times ahead.
At its Annual General Meeting (AGM), Metcash delivered a trading update where it revealed that for the financial year up to 8 September, the group’s food sales, excluding tobacco, increased 17.9 per cent reflecting volume growth and inflation moderation.
Supermarket and convenience total sales increased 3.5 per cent, excluding tobacco, while its Superior Foods division increased 8.7 per cent.
Peter Birtles, Chairman of Metcash, said all pillars demonstrated resilience in softer market conditions successfully leveraging their competitive strategies.
“In Food, strong earnings growth was delivered in the most value-conscious shopping environment in recent memory, providing further evidence of its shift to a sustainable and resilient business model.”
Group revenue increased 0.7 per cent to $18.2 billion, while Group EBIT declined 0.9 per cent to $496.3 million, with growth in Food and Liquor earnings being offset by lower earnings in Hardware and increased corporate costs.
Looking ahead to FY25, Birtles said the current economic conditions remain challenging and continue to impact consumer confidence.
“As a result, we expect the shift in consumer behaviour to more value-conscious choices to remain in FY25.
“The company’s platform of three diversified businesses is fundamentally strong, and we have the right plans, teams, and capabilities in place to deliver future growth as we work through the current economic cycle.”
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