Metcash kicks off new fiscal year with soaring food sales
Metcash has booked a sales increase of 6.1 per cent in the early part of the new fiscal year – with food leading the growth.
The group’s food sales, excluding tobacco, surged 17.9 per cent, reflecting volume growth and inflation moderation, the company said in an investor update covering the period to September 8.
Supermarket and convenience store sales grew 3.5 per cent, while its Superior Foods division jumped 8.7 per cent.
Meanwhile, liquor segment sales climbed 2.7 per cent as independent stores won market share due to what the company described as the relevance of their localised offer.
Hardware sales increased 2.5 per cent despite challenging conditions for IHG as trade activity softened even further. Total Tools saw the return of normal competitive market conditions following intense pricing pressure.
“The current economic conditions remain challenging and continue to impact consumer confidence. As a result, we expect the shift in consumer behaviour to more value-conscious choices to remain in FY25,” said Peter Birtles, chairman of Metcash.
“The company’s platform of three diversified businesses is fundamentally strong, and we have the right plans, teams and capabilities in place to deliver future growth as we work through the current economic cycle.”
The early trading results contrast to last fiscal year, when the group’s revenue and earnings before interest and taxes (EBIT) fell 0.9 per cent to $496.3 million.
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