Metcash has reported its half-year results, which have shown sales growth across the business, with a strong earnings performance for the food division.
Overall group revenue increased 1.3 per cent to $7.8bn, and while group underlying EBIT decreased by 3.4 per cent to $246.5m, statutory profit after tax increased 12.2 per cent to $141m.
Speaking about the result, Group CEO Doug Jones said the diversity and resilience of the portfolio of businesses are clearly evident in the first half results for FY24.
“Standouts for the half include continuation of sales growth on a very strong comparative period, and in more challenging conditions, as well as the outstanding cash performance. Sales growth was delivered in all pillars and in our independent retail networks, with the differentiated offer of the independent network and its compelling value proposition continuing to resonate with shoppers, builders and tradespeople.
“Our independent retail networks are healthy, and importantly they are continuing to reinvest to further lift their overall store quality and competitiveness.
“Our food and liquor pillars performed particularly well, delivering increased earnings on the strong comparative period.”
Total food sales (including charge-through and excluding tobacco) increased 5.7 per cent, with strong growth in both supermarkets and convenience. Food EBIT increased $3.5m or 3.6 per cent to $101.7m reflecting the strong trading performance ex-tobacco, continued strong support from suppliers, and effective management of costs.
Tobacco sales declined 12.2 per cent due to an acceleration in illicit trade and the trend to alternatives.
The company stated that the differentiated offer of the retail network, supported by continued improvement in prices, ranges, and store quality, resonated with shoppers, resulting in the retention of IGA in their shopping repertoire. There were 18 new IGA stores opened in the half and eight closures.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.