Metcash (MTS) H2 2024 earnings summary

Executive summary

• Delivered strong FY24 results despite challenging macro conditions, with disciplined execution and diversification underpinning performance.

• Maintained or grew market share in key segments: Liquor and Hardware strengthened, Food held steady.

• Completed strategic acquisitions (Superior Foods, Alpine Truss, Bianco) to drive future growth.

• Strong cash generation and cost control supported robust financial outcomes.

Financial highlights

• Group revenue reached $18.2bn, up 0.7% year-over-year; underlying EBIT $496.3m, down 0.9%.

• Underlying profit after tax $282.3m, down 8.2%; reported profit after tax $257.2m, down 0.7%.

• Operating cashflow $483m; cash realisation ratio 102%.

• Earnings per share 28.3c (underlying), 25.8c (reported), down 3.7%.

• Total dividend 19.5cps, ~70% payout ratio.

Outlook and guidance

• First seven weeks of FY25: group sales up 2.2% (including Superior Foods), flat excluding acquisition.

• Food (ex-tobacco) and Liquor continue strong performance; Hardware outperforms market despite softness.

• Targeting ~$15m in additional annualised cost savings in FY25.

• Well positioned for future growth with diversified portfolio and recent acquisitions.