Metcash has released its financial results for the first six months of FY24 ending 31 October 2023, with further sales growth consolidating what the company described as “recent extraordinary sales performance”.
Group reported revenue increased 1.3% to $7.8billion, with group revenue increasing 1.6% to $9.0billion. Total liquor sales increased 2.4% to $2.5billion, with continued growth in sales to independent retail customers despite what Metcash described as a “more challenging market”. Earnings increased 3% to $50.8million.
Group CEO Doug Jones said: “The diversity and resilience of our portfolio of businesses are clearly evident in the first half results for FY24.
“Sales growth was delivered in all pillars and in our independent retail networks, with the differentiated offer of the independent network and its compelling value proposition continuing to resonate with shoppers.
“Our Food and Liquor pillars performed particularly well, delivering increased earnings on the strong comparative period.
Wholesale liquor sales to retail customers increased 2.8%, underpinned by what Metcash described as a “continuation of the increased preference for local shopping and the at-home consumption trend”.
“The value offered by the independent retail network through convenience, tailored ranges, competitive prices and local friendly service continued to drive the strong performance,” Metcash said.
Higher cost of living pressures led to more shoppers switching to lower priced value choices with the beer and RTD categories delivering the highest growth.
However, sales to on-premise customers declined 2.6%, which Metcash described as being “in line with market trends”.
Metcash said sales growth has continued in the first four weeks of the second half of FY24. It noted the liquor pillar was performing well, supported by the company’s competitiveness and “differentiated value proposition”.
Categories: Business
