Metcash has provided a trading update, and earnings estimate for the first half of FY25 ending 31 October 2024. Year to date group sales rose 6.3%.
Its food sales, excluding tobacco, rose 18.5%. Supermarkets and convenience rose 3%, while Superior Foods rose 6.4%.
“Food (ex-tobacco) has continued to perform strongly in a highly value conscious shopping environment demonstrating the business’ resilience and relevance of the independent network’s differentiated offer,” says Metcash. “The sales performance represents volume growth and moderating inflation.
“Superior Foods has also performed strongly for the period since acquisition (3 June 2024), which has included the cycling of a number of new contracts won in September/October last year.”
Liquor sales rose 2.1%, with Metcash noting that independents are continuing to outperform and win market share in a more challenging environment, supported by their localised and competitive offer.
Metcash estimates that group underlying net profit after tax for the first half of FY25 will range between $132 million and $135 million.