- Metcash half year group revenue up 2.2% to $6.2 billion.
- Statutory profit after tax up 3% to $95.8 million.
- Supermarkets sales flat at $3.6 billion, with “highly competitive market conditions” continuing.
Metcash reported flat half year supermarket sales at $3.6 billion as the retailer faced increased competition.
Sales growth in the eastern seaboard was offset by a fall in Western Australia.
The second tier player is reported to have lost ground to German discount player Aldi.
Statutory profit after tax was up 3% to $95.8 million. Underlying profit was 1.2% higher at $100.3 million.
Overall group revenue was up 2.2% to $6.2 billion, on the back of Mitre 10 and Home Timber & Hardware stores which reported sales up 1.3% to 1.09 billion, and liquor sales, up 6.7% to $1.75 billion.
Group CEO Jeff Adams says the first half results are pleasing in the face of a challenging market.
“Our Supermarkets Pillar continued to face challenging market conditions,” he says.
“However it was encouraging to see a slowdown in the rate of deflation which helped deliver an improvement in the sales trajectory for both ourselves and our retailer network.”
He says highly competitive market conditions are expected to continue through the rest of the 2019 financial year.
“We are, however, encouraged by the slowdown in the rate of decline in non-tobacco sales and progress on key initiatives in the first half,” he says.
The company declared a fully franked interim dividend of 6.5 cents a share.
Division results for the half year:
Business Insider Emails & Alerts
Site highlights each day to your inbox.