Metcash (ASX:MTS) has released a trading update and earnings estimate for the first half of FY25, showing a strong performance across its food, liquor, and hardware divisions.
As of Oct. 20, group sales have increased by 6.3% compared to the previous corresponding period.
The food division, excluding tobacco, has demonstrated robust growth with an 18.5% increase, driven by a value-conscious consumer base and the strength of the independent network's offerings.
Supermarkets and convenience saw a 3% rise in sales, while Superior Foods achieved a notable 6.4% growth since its acquisition in June.
Liquor sales improved by 2.1%, supported by the competitive local offerings of independent retailers.
In contrast, the hardware segment reported a more modest growth of 2.8%, as the market remains challenging.
Metcash highlighted margin pressures due to softened trade activities; however, they have implemented cost management strategies to mitigate this.
Metcash's focus on acquisitions has resulted in anticipated synergies, and all recent acquisitions are performing as expected.
The company remains poised for potential market activity increases, aiming to secure further market share gains in both trade and DIY segments.
Metcash projects an underlying net profit after tax for the first half of FY25 between $132 million and $135 million.
Further details will be shared during the company's FY25 half-year results, scheduled for release on Dec. 2.