Metcash makes modest gains on mid-year update
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More news: Metcash shares closed up 1.1% at $3.59, after reaching an intraday high of $3.67, after the IGA owner boosted revenues, but lost ground on costs and its hardware segment.
Metcash reports mixed half-year results
The news: Wholesale giant Metcash has declared a revenue increase in its half year results, while rising costs and weak performance in its hardware segment have hit underlying earnings and profit.
The numbers: The IGA owner reported increased revenue of 1.3% to $7.8 billion for the six months ending 31 October. Statutory profit after tax also increased 12.2% to $141 million. However, lower earnings in hardware and increased corporate costs impacted underlying earnings before interest and taxes, which decreased by 3.4%to $246.5 million, and group underlying profit after tax, which fell 10.9% to $142.5 million. Metcash will pay an interim dividend of 11 cents per share on 30 January.
The context: Metcash said it continues to have a strong focus on costs and expects to deliver between $14 million and $16 million of annualised savings from its cost optimisation program in the second half of the financial year.
The source: ASX announcement
