Metcash Limited (ASX: MTS)
Metcash Limited is a leading Australian wholesale distribution and marketing company operating across Food, Liquor, and Hardware, and has reported a resilient performance for the half year ended 31 October 2024. The Group achieved a 6.3% increase in total revenue to $9.6 billion including charge-through sales, or 8.1% growth to $8.5 billion on a statutory basis. Underlying EBIT was $246.1 million, and statutory profit after tax rose to $141.8 million, up 0.6% compared to the prior corresponding period. Operating cash flow stood at $164 million, with a three-year average cash realisation ratio of 85.5%. Net debt increased to $725 million, primarily due to recent investments, including the June 2024 acquisition of Superior Food Services. The Board declared an interim dividend of 8.5 cents per share, consistent with its target payout ratio of around 70%.
The Food segment reported an 18.8% increase in sales (excluding tobacco), reaching $4.2 billion, supported by resilient supermarket performance and new contract wins, with Superior Foods contributing to the growth. Liquor sales increased 2.1%, supported by the independent retail network, although EBIT declined 3.3% due to lower inflation benefits and higher costs. Hardware revenue rose 2.5% to $1.8 billion, while EBIT declined 15.1% to $93.9 million, impacted by softer Trade conditions and margin pressure. Through a continued focus on operational efficiency, strategic acquisition integration, and supporting its national network of independents, Metcash remains well positioned to deliver consistent value across its diversified operations.
Coles Group Limited (ASX: COL)
Coles Group Limited is a leading Australian retailer operating across supermarkets, liquor, and eCommerce channels, with a clear focus on delivering value, digital innovation, and supply chain resilience. For the half year ended 5 January 2025, the Group reported sales revenue of $23.0 billion, up 3.7% on the prior period. Supermarkets contributed $20.6 billion in revenue, up 4.3%, and Liquor delivered $2.0 billion, up 0.8%. Underlying Group EBIT rose 8.9% to $1.21 billion, and underlying NPAT reached $666 million, up 6.4%. Coles announced a fully franked interim dividend of 37.0 cents per share, marking a 2.8% increase.
Growth was fueled by effective execution during major events like Christmas and Black Friday, improvements in eCommerce services, and the strong performance of the Exclusive to Coles range, which added over 530 new products and saw a 10.2% increase in Coles Finest sales. eCommerce sales in Supermarkets surged 22.6%, supported by investment in Customer Fulfilment Centres and technology such as Rapid Delivery. The Liquor segment experienced stronger trading in the second quarter, while eCommerce sales recorded a 9.2% increase. Operational improvements under the Simplify and Save to Invest program delivered $157 million in benefits, while automation ramped up with a new ADC in Victoria announced. The Group also completed 25 Supermarket and 67 Liquor store renewals, reaffirming its long-term strategic focus. Despite macroeconomic pressures, Coles continues to enhance customer value and experience through digital transformation, fresh food quality, and loyalty initiatives across the nation.
(Source: Company Announcements)
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