Metcash Limited (ASX:MTS) FY25 Half Year Results

Financial Performance

Metcash Limited has released its FY25 Half Year Results, reporting a 6.3% increase in total revenue, amounting to $9.6 billion. Despite challenging market conditions, earnings before interest and tax (EBIT) remained steady at $246.1 million. The net profit after tax increased by 0.6% to $141.8 million. The company’s underlying earnings per share (EPS) was reported at 12.3 cents, reflecting a decline of 10.3% due to a rise in weighted average shares from equity raising initiatives.

Segment Highlights

The food segment demonstrated strong growth with total sales of $5.2 billion, supported by a rise in supermarkets and Campbell’s & Convenience sales. Liquor sales also performed well, recording an increase of 2.1%, while hardware faced weaker sales, impacted by market conditions. Metcash’s diversified portfolio strategy continues to deliver market share growth, with the strong performance noted in liquor and food sectors.

Interim Dividend Announcement

Metcash declared an interim dividend of 8.5 cents per share, in line with its target payout ratio of approximately 70% of underlying profit after tax. The dividend is set for distribution on 29 January 2025.

CEO Comments

CEO Doug Jones expressed satisfaction with the company’s performance despite external challenges. “Our continued focus on cost management and strategic acquisitions has positioned us well for future growth. We remain committed to supporting our independent retailers and maximising shareholder value,” said Jones.

Group Outlook

Looking ahead, Metcash expects strong sales growth across its food, liquor, and hardware segments in H2 FY25, buoyed by ongoing strategic initiatives and customer acquisitions. The company remains optimistic about capitalising on market opportunities despite current external pressures in the hardware sector.

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Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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