Metcash (ASX:MTS) lifts revenue & profit despite external challenges

Company News

by Lauren Evans

Metcash (ASX:MTS) has reported continued financial growth for the year ending April 30 despite external challenges like supply chain issues, flooding and Covid. 

The consumer goods distributer and marketer has reported a 5.9 per cent increase in group revenue to $15.2 billion, while its underlying earnings before interest and taxes rose 17.7 per cent to $472.3 million.

Its statutory profit after tax lifted 2.7 per cent to $245.4 million. 

“The FY22 results were underpinned by the success of our MFuture initiatives designed to further improve the competitiveness of our retail network, continuation of the local neighbourhood shopping trend and the success of recent strategic acquisitions,” said chief executive officer Doug Jones.

“The number of external challenges increased in the second half and our supply chain and retail operations, both our own and those of our retail partners, exhibited significant resilience and flexibility.”

“There were more lockdowns due to the Omicron Covid variant, major supply chain challenges, flooding in South Australia, New South Wales and Queensland which resulted in supply route disruptions, and towards the end of the financial year challenges related to Russia’s invasion of Ukraine and lockdowns in China.”

Meanwhile, the lift in earnings led to a 23 per cent increase in total dividends for FY22, which represents a 72 per cent increase on a two-year basis.

“While remaining focused on managing the supply change challenges, we are also helping shoppers manage the impact of inflation by providing better value options through a wider range of products at competitive prices.”

Shares are trading 8.2 per cent higher at $4.47. 

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