Aussie conglomerate who owns, IGA, Mitre 10 and Home Timber & Hardware, Metcash (ASX:MTS) has swung back into profit territory, reporting a $192.8 million profit for the year ending 30 April 2019. It was a surge from the prior year’s $148.2 million loss in FY18.
Sales revenue rose 1.8 per cent to $12.66 billion in FY19.
Earnings before interest and tax (EBIT) fell 1.4 per cent to $330.0 million with earnings growth in the Hardware and Liquor offsetting the fall in food earnings.
It declared a final dividend of 7.0 cents per share, fully franked for the year.
Its supermarkets business delivered its fourth consecutive HY year of growth in non-tobacco sales. Its Supermarkets sales are continuing to grow and the outlook for the first seven weeks of FY20 is strong.
Earlier in June, MTS entered into a five year supply agreement with Drakes Supermarkets in Queensland, however MTS expects to cease supplying Drakes Supermarkets in South Australia (around 30 September 2019).
Metcash shares are trading 6.67 per cent lower at $2.94