AUS
NZ
UK
CA
USA
IND
Highlights
- In early 2HFY25, the company reported an 8.0% YoY increase in total group sales with Superior Foods sales rising by 6.1%.
- In 1HFY25, MTS’ sales revenue rose 6.3% YoY to AUD 9,571.6 million, while net profit edged up by 0.6% YoY to AUD 141.8 million.
- Metcash aims to achieve AUD 15 million in annual cost savings and synergies from its recent acquisitions.
Metcash Limited (ASX:MTS) is an ASX-listed wholesale distribution and marketing company that demonstrated resilience and growth across its core business segments of food, liquor, and hardware during the first half of the financial year 2025 (FY25). The financial performance in 1HFY25 was underpinned by acquisitions.
The market share was maintained in the hardware and food segments and growth was recorded in the liquor segment through localised offering and improved customer strategy execution.
Financial Highlights for 1HFY25
- Sales Revenue: AUD 9,571.6 million, up 6.3% YoY from AUD 9,000.9 million in 1HFY24.
- Earnings Before Interest and Tax (EBIT): AUD 246.1 million, marginally lower by 0.2% YoY.
- Net Profit: AUD 141.8 million, an increase of 0.6% YoY.
The company’s operating cash flow for the period stood at AUD 164.0 million.
Performance in first four weeks of 2HFY25
During the reported period, group sales surged by 8% YoY. Meanwhile, total food sales (excluding tobacco) grew by 22.6% YoY, while overall food sales (including tobacco) saw a 12.4% YoY rise.
During the reported period, supermarket wholesale sales increased by 2.3% YoY and wholesale price inflation moderated to 0.2%, excluding tobacco and fresh produce.
In first four weeks of 2HFY25, liquor sales increased by 4.4% YoY and IHG sales in hardware segment rose by 3.6% YoY, although sales (excluding acquisitions such as Alpine Truss and Bianco) declined by 2.1%.
Outlook and Strategic Initiatives
Metcash expects to achieve its targeted debt-to-leverage ratio within the mid to upper range for FY25 and FY26. The company intends to realise AUD 15 million in annual cost savings and synergies stemming from recent acquisitions.
Superior Foods continues to be a growth driver, supporting the broader food segment’s performance and the IBA network in liquor has been gaining market share, leveraging its localised focus and strategic retail partnerships.
While hardware trading conditions remain subdued, IHG is expected to drive earnings in the second half through cost efficiency and targeted growth initiatives. Total Tools is expecting an improved performance in 2HFY25 compared to FY24.
Share performance of MTS
MTS shares closed 0.32% higher at AUD 3.11 per share on 20 January 2025. In the past year, MTS’ share price has dropped by almost 11.14% and recorded a fall of 12.39% in the last three months.
52-week high of MTS is AUD 4.06, recorded on 13 March 2024 and 52-week low is AUD 3.00, recorded on 13 November 2024.
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 20 January 2025. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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