Metcash has reported a 6.1% rise in total sales for the financial year up to 8 September.
Announced at the company’s Annual General Meeting, Metcash’s food sales, excluding tobacco, increased 17.9%, which the company says reflects volume growth and inflation moderation. Supermarket and convenience sales, excluding tobacco, increased 3.5%, while the Superior Foods division saw sales increase by 8.7%.
Metcash chairman Peter Birtles said all the company’s pillars demonstrated “resilience in softer market conditions successfully leveraging their competitive strategies”.
“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,” he said.
Liquor sales increased 2.7% with continued growth in wholesale sales to retail and on-premise customers.
“In liquor, the business continued to outperform the market, win share and deliver strong earnings growth,” Mr Birtles said.
Group revenue increased 0.7% to $18.2 billion, while Group EBIT declined 0.9% to $496.3 million, with growth in food and liquor earnings being offset by lower earnings in hardware and increased corporate costs.
Looking ahead, Mr Birtles said: “The current economic conditions remain challenging and continue to impact consumer confidence. As a result, we expect the shift in consumer behaviour to more value-conscious choices to remain in FY25.
“The company’s platform of three diversified businesses is fundamentally strong, and we have the right plans, teams and capabilities in place to deliver future growth as we work through the current economic cycle.”