Metcash(ASX:MTS) announced its half-year results for FY25, showcasing growth despite challenging market conditions.
The company's total sales increased 6.3% to $9.6 billion compared to the previous year.
Group EBIT remained steady at $246.1 million, while reported profit after tax saw a marginal increase of 0.6% to $141.8 million, supported by a $15 million gain from the reversal of a previously impaired loan.
Strong sales in the liquor and food segments were highlighted, with acquisitions like Superior Foods contributing to the revenue.
Doug Jones, Group CEO of Metcash, commented on the results, "Independents' localised and competitive offer continues to drive share gains in a challenging market, led by the IBA network."
Metcash's diversified portfolio and strategic acquisitions have helped the company maintain a strong position in the market, despite the weaker activity in the hardware segment.
The company has also implemented a cost-out program across the group, targeting operational efficiency and cost optimisation.
The acquisition of Superior Foods has strengthened Metcash's footprint in the food segment, driving earnings growth.
The company has also maintained its focus on optimising supplier payment terms and stock availability.
The hardware sector has experienced some softening, but Metcash's emphasis on cost management and accelerating initiatives aims to bolster market share growth.
Total Tools, part of the hardware segment, is seeing strong growth in exclusive brands, commercial, and online sales despite intense competition.
Metcash declared an interim dividend of 8.5 cents per share.
Metcash anticipates remaining within its target debt leverage ratio range for FY25 and FY26.