Metcash jumps 10% on profit turnaround
On Monday, Metcash released its financial results for the first half of FY21. Due to a renewed focus on local shopping, the independent supermarket distributor has posted one of its strongest-ever half-yearly results, with the company's underlying earnings surging 43%.
Metcash declared an increased interim dividend to 8.0 cents per share, up from 6.0 cents on the prior comparative period. COVID related costs have been well managed at approximately $8m in 1H21, and the company has managed to continue investing in growth opportunities, including the acquisition of Total Tools and the Kollaras private label business
Highlights in the release included:
Significant growth in sales volumes across all segments
Strong earnings growth with underlying Group EBIT up 30.4% to $203.0m
Group revenue increased 12.2% to $7.1bn and 12.3% to $8.1bn including charge-through sales
Strong sales growth underpinned by investment in MFuture initiatives
Underlying profit after tax increased by 43.0% to $129.6m
Statutory profit after tax of $125.1m, up from a loss of $151.6m in 1H20
Metcash also noted that sales momentum has continued into 2H21 with strong growth in the first five weeks.