Metcash’s sales increased year over year in the fiscal first half, with its food category posting double-digit growth.
The group’s sales rose 6.3 per cent, and food, excluding tobacco, climbed 18.5 per cent. Supermarkets and convenience went up 3 per cent, and Superior Foods grew 6.4 per cent.
Meanwhile, liquor sales jumped 2.1 per cent, and hardware sales improved by 2.8 per cent, as Independent Hardware Group (IHG) and Total Tools’ sales expanded by 2.6 per cent and 3.7 per cent, respectively.
The results exclude the impact of Alpine Truss and Bianco acquisitions for IHG, which encountered additional margin pressure due to weakness in retail store sales.
Metcash has started implementing cost-cutting measures, which include a material reduction in labour hours.
The group expects to report underlying net profit after tax of $132 million to $135 million in the fiscal first half.
This article was first published on sibling website Inside Retail.
