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Highlights
- Metcash shares fell 3.9% to AU$3.170, their lowest level since December 2020, marking four consecutive days of losses.
- The company expects underlying net profit after tax for H1 FY25 to be between AU$132 million and AU$135 million, down from AU$142.5 million in H1 FY24.
- Year-to-date group sales have risen 6.3%, but the independent hardware division is experiencing further margin pressures.
Shares of Metcash Ltd (ASX:MTS) have taken a significant hit, falling by as much as 3.9% to AU$3.170, marking their lowest point since 4 December 2020. This decline positions the stock on track for its fourth consecutive day of losses.
The company's recent updates have investors concerned. Metcash projected a group underlying net profit after tax for the first half of FY25 between AU$132 million (approximately $87.57 million) and AU$135 million. This represents a decline compared to the underlying profit after tax of AU$142.5 million recorded in the same period last year (H1 FY24).
Despite this profit forecast, Metcash reported a year-to-date increase in group sales of 6.3% compared to the previous year. However, the company has faced challenges in maintaining margins, particularly within its independent hardware division, which has experienced further margin pressures in September and October.
As of the last trading session, Metcash's shares are down 5.4% year-to-date, reflecting the ongoing struggles the company faces in a competitive market.
