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Highlights
- In 1HFY25, sales revenue of Metcash increased by 8.1% YoY to AUD 8,470 million.
- Recently, Director Mark Graham Johnson has acquired 25,000 shares for AUD 85,250.
- Metcash expects to maintain a debt-to-leverage ratio of 1.0x to 1.75x for FY25 and FY26.
Metcash Limited (ASX:MTS) is a wholesale marketing and distribution company that operates through the hardware, liquor and food segments. In the first half of the financial year 2025 (1HFY25), sales revenue of MTS jumped 8.1% YoY to AUD 8,470.0 million, EBITDA increased by 5.6% YoY to AUD 360 million and net profit jumped 0.6% YoY to AUD 141.8 million.
Latest performance of food pillar
In 1HFY25, food pillar (excluding tobacco and including charge-through) recorded 18.8% YoY increase in sales. The growth in food pillar sales is driven by the performance of Supermarkets and Campbells & Convenience, along with positive impact of the Superior Foods acquisition. Notably, in the first four weeks of 2HFY25, total food sales, excluding tobacco increased by 22.6% YoY.
Latest performance of liquor pillar
In the challenging market the liquor pillar outperformed with total sales increasing by 2.1% YoY in 1HFY25, underpinned by the IBA network’s localised, competitive offerings and a diversified customer strategy. In the first four weeks of 2HFY25 liquor sales jumped 4.4% YoY and wholesales sales to the IBA customers increased 5%, while on-premises sales were flat.
Increasing interest of company’s director
According to the latest update dated 6 December 2024, the interest held by Director Mark Graham Johnson has changed with the acquisition of 25,000 shares for consideration of AUD 85,250.
Outlook
In FY25 and FY26, the company anticipates being in the mid to upper end of its expected debt-to-leverage ratio of 1.0x to 1.75x. Moreover, the company is on track to record annualised cost savings of AUD 15 million through its cost-out program along with synergies from recent acquisitions.
Top 10 Shareholders
The top 10 shareholders of MTS have ~39.16% shareholding in the company, with the top four shareholders having nearly 23.49% stake. Perpetual Investment Management Limited and The Vanguard Group, Inc. have the highest stake in the company with shareholding of ~6.97% and ~5.98%, respectively.
Share performance of MTS
MTS shares closed 2.39% lower at AUD 3.27 apiece on 9 December 2024. MTS stock price has recorded a rise of ~5.48% in the last one month, while in the last one year, the share price has dropped by ~7.89%.
52-week low of MTS is AUD 3.000 and 52-week high is AUD 4.060.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 09 December 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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