Key Highlights
- Revenue Growth: Group revenue increased by 6.3% to $9.6 billion (8.1% to $8.5 billion excluding charge-through sales).
- Profitability: Underlying EBIT was stable at $246.1 million, while underlying profit after tax decreased by 5.5% to $134.6 million. Statutory profit after tax rose slightly by 0.6% to $141.8 million.
- Interim Dividend: An 8.5 cents per share dividend, fully franked, was declared, maintaining a payout ratio of ~70% of underlying profit after tax.
Performance by Division
Food
- Revenue: Total Food sales rose 18.8% (excluding tobacco), driven by strong performance in Supermarkets and Campbells & Convenience, and the acquisition of Superior Foods.
- Earnings: Food EBIT increased 17.9% to $119.9 million.
- Highlights:
- Supermarkets saw a 3.1% increase in wholesale sales (excluding tobacco).
- Superior Foods delivered robust growth with new contract wins.
Liquor
- Revenue: Total Liquor sales grew by 2.1% to $2.5 billion.
- Earnings: EBIT decreased slightly by 3.3% to $49.1 million due to reduced strategic buying and higher costs.
- Highlights:
- Independent retailers continued to gain market share, supported by localised and competitive offers.
Hardware
- Revenue: Total Hardware sales increased by 2.5% to $1.8 billion, supported by acquisitions and new stores.
- Earnings: EBIT declined by 15.1% to $93.9 million, reflecting softer Trade activity and increased cost pressures.
- Highlights:
- Total Tools’ network sales rose by 4.3%, with strong growth in exclusive brands and online channels.
Financial Health
- Debt: Net debt rose to $725 million, primarily due to the acquisition of Superior Foods. The debt leverage ratio (DLR) is within the target range of 1.0x to 1.75x.
- Cash Flow: Operating cash flow was $164 million, aligning with a 3-year average cash realisation ratio of ~86%.
Outlook
- Growth Prospects: Metcash’s diversified portfolio positions it well for structural growth in Food and Liquor, while Hardware is expected to benefit from long-term positive fundamentals.
- Early 2H25 Results: Group sales for the first four weeks of 2H25 increased by 8%, with Food (excluding tobacco) up 22.6%, Liquor up 4.4%, and Hardware showing moderate growth.
Metcash remains confident in its strategy, underpinned by a diversified business portfolio, focused cost management, and growth initiatives.
