‘Very admirable’ results for Metcash despite challenges

Metcash Group, according to Group CEO Jeff Adams, has delivered “very admirable” results in a year of “unprecedented challenges”.

The Group’s 2020 Full Year Results report that the company’s revenue increased 2.9% to $13 billion, and including charge through sales, was up two per cent to $14.9 billion.

“Our businesses went to extraordinary lengths to support our employees, our retailer network and local communities in their time of need,” says Mr Adams. “This included investing in their safety and wellbeing, in operations to ensure the continuity of supply of essential products, as well as in supporting retailers impacted by COVID-19 restrictions.

“From a logistics perspective, it was pleasing to see how quickly we were able to flex the capacity of our distribution centres to help meet the surge in demand in March and April, particularly in our Food pillar. Our retailer network has a significant presence in regional and remote areas, and is often the only store in town, so it was critical that we maintained effective supply to these communities.”

Food

Total food sales (including charge through sales) increased 3.5% to $9.1 billion.

In supermarkets, total sales (including charge through) increased 3.8% to $7.5 billion. Importantly, says Metcash, total sales for the 10 months to February (pre the positive benefit from COVID-19) increased 0.2%.

Wholesale sales (excluding tobacco) increased 3.9 per cent (up 6.3% excluding Drakes impact) in FY20. Metcash says this reflects continued improvement in the sales trajectory for the 10 months to February together with a significant uplift in volumes in March and April related to COVID-19 restrictions.

Metcash’s IGA retailer network also performed “well” with like for like retail sales up 5.6%.

Convenience sales increased 2% to $1.59 billion. This, says Metcash, reflects mainly higher tobacco sales from larger customers.

Liquor

Total liquor sales (including charge through sales) increased 0.3% to $3.68 billion. This is despite being “adversely impacted” by COVID-19 restrictions in March and April.

Total sales for the 10 months ended February 2020 (pre-COVID-19 restrictions) increased 2.2%. Metcash says this reflects value growth from the continuing premiumisation trend and an increase in on-premise sales.

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