Metcash delivers lower earnings but higher sales in FY24 results

Metcash has released its FY24 results, which it described as “strong results in [a] challenging macro environment”.

The group’s revenue, excluding charge-through sales, increased 0.7 per cent to $15.9 billion, while group underlying EBIT decreased 0.9 per cent to $496.3 million.

Total food sales (including charge-through and excluding tobacco) increased 4.6 per cent, with strong growth in supermarkets and Campbells and Convenience. Earnings in the food pillar increased 3.0 per cent to $210.1 million, which Metcash says reflects its strong trading performance.

In Campbells and Convenience, total sales excluding tobacco increased 4.0 per cent reflecting stronger sales from its major banner group customers. 

Doug Jones, CEO of Metcash Group, said operationally, all pillars performed well, in line with their strategic positioning, demonstrating resilience in the current softer market conditions.

“The company has delivered strong results for FY24, a year in which there was a further decline in the external environment. The results have been underpinned by our strategy, which is clearly working, and the disciplined execution of key initiatives.

“In food, strong earnings growth was delivered in the most value-conscious shopping environment in recent memory, providing further evidence of its shift to a sustainable and resilient business model. The pillar is now structurally positioned for enduring growth.”

Jones said the year was a milestone year for the company from a strategic perspective with announcement of major acquisitions in the food and hardware pillars.

“The acquisition of Superior Foods was completed earlier this month and will result in the further strengthening of our food business. It also opens-up new growth opportunities in the attractive and adjacent foodservices market. While in hardware, the acquisitions of Alpine Truss and Bianco Construction Supplies accelerates our ‘whole of house’ strategy and further strengthens the business’ market position.”

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