Friday, April 19, 2024

‘Solid’ results for Metcash despite a challenging market

Metcash Group delivered a “solid set” of financial results during FY19, says Chairman Robert Murray, and continued to “successfully” execute its key strategic initiatives.

Reported Group sales (which excludes charge-through sales) increased 1.8 per cent to $12.7 billion, while sales (including charge-through sales) increased 1.4 per cent to $14.6 billion.

Group EBIT, however, declined 1.4 per cent to $330 million. Food EBIT decreased three per cent to $182.7 million, and Liquor EBIT increased 1.3 per cent to $71.2 million.

The five-year strategy

Metcash, according to Mr Murray, has a “clearly defined” five-year strategy.

“This strategy, which we have called MFuture, was presented to investors at our strategy day in March,” he said.

“The MFuture program will continue to have a strong focus on costs. However, importantly the new program also incorporates a strong focus on growing our top line and includes significant investments to further improve the competitiveness of our Food, Liquor and Hardware retailer networks.”

New appointments

Mr Murray notes the appointment of Chris Baddock as the new Chief Executive Officer of the Liquor pillar.

“Chris’ appointment followed an extensive search for a successor to Scott Marshall following his appointment as CEO of Supermarkets & Convenience in March last year,” he said.

“Chris has extensive experience in the liquor market, and he has a strong track record of delivering sustainable growth and working with independent retailers.

“We are delighted to have Chris join the leadership team.”

Metcash has also appointed a new Chief Strategy and Transformation Officer, Matt Havens.

Looking to the future

Mr Murray says Metcash is focused on its core purpose: championing its independent retailers.

“I believe our MFuture plans are the right plans and these are supported by a high quality, dedicated and passionate leadership team whose primary purpose is to ensure the success of our independent retailer networks,” he said.

“While our markets remain challenging, we are encouraged by the confidence of our independent retailers in the future and their willingness to continue to invest in their stores.

“Together, we are improving the quality and competitiveness of our retailer networks across Supermarkets, Liquor and Hardware to underpin their ongoing success.”

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