More challenging market in months ahead, Metcash warns

Current economic challenges will continue for the next few months, according to IGA, Mitre 10 and Cellarbrations supplier Metcash. The supermarket, liquor and hardware wholesaler told shareholders at a general meeting on Friday that conditions impacting consumer confidence would continue to ripple and Australians would further tighten their belts. "As a result, expect the shifting consumer behaviour to more value-conscious choices to remain in 2025," Metcash non-executive chair Peter Birtles said. However, the conglomerate wholesaler was in a good position for continued growth regardless of the headwinds, Mr Birtles told investors. "The company's platform of three diversified businesses is fundamentally strong, and we have the right plans, teams and capabilities in place to deliver future growth as we work through the current economic cycle," he said. "We continue to work closely with our suppliers and shoppers to maintain a value offering with a wide range of products at competitive prices." Metcash achieved a "very pleasing and strong set of results" for shareholders across the 2024 financial year, according to the chair. The group's revenue increased by 0.7 per cent to $18.2 billion, earnings before interest and tax declined by 0.9 per cent to $496.3 million, and underlying profit after tax was 8.2 per cent lower at $282.3 million. "Total dividends for the year were 19.5 cents per share, fully franked, in line with our target payout ratio of 70 per cent of underlying profit after tax," Mr Birtles said. Metcash, which owns Total Tools and Mitre 10, also recently sealed the deal on acquiring hardware stores Bianco Construction Supplies and Alpine Truss before adding Superior Food Group to its line-up. The three additions were worth more than half a billion dollars. Mr Birtles said the acquisitions would further strengthen the market position of Metcash.