Image source: Leka Sergeeva

Highlights

  • Metcash is an Australia based wholesale distribution and marketing company
  • In 1HFY24, the company reported 1.3% YoY growth in the group revenue to AUD 7, 837.7 million
  • Perpetual Investment Management Limited has the maximum stake in the company with a shareholding of around 7.78%

Australia based Metcash Limited (ASX: MTS) is a wholesale distribution and marketing company that primarily deals in the grocery, food, liquor, automotive and hardware products. The company mainly caters to the growing network of independent retailers in New Zealand and Australia.

In the first half of the financial year 2023 (1HFY23), the company recorded a 1.3% YoY increase in the group revenue to AUD 7,837.7 million comprising 2.95% YoY growth in hardware revenue to AUD 1,783.5 million. In 1HFY24, reported PAT jumped 12.2% YoY to AUD 141 million. Here’s the historical financial trend of MTB:

Top 10 shareholders of MTS

The top 10 shareholders of MTS have approximately 44.19% holding in the company, while the top four shareholders have nearly 24.97% shareholding. Perpetual Investment Management Limited and State Street Global Advisors Australia Ltd. have the highest stake in the firm, with a shareholding of ~7.78% and ~6.01%, respectively.

Recent business update

Through an ASX filing dated 3 June 2024, the company notified about the conclusion of acquisition of Superior Foods, announced in February. This development strengthens and diversifies growth of the organisation. Superior Foods is an Australia based food service distributor, which improves the company’s resilience and presence in the growing food service market.

On 12 March 2024, the company released a trading update for the ten months ending 25 February 2024. During the stated period, the company saw 0.9% YoY surge in its group sales, which includes 5.0% YoY increase in total food sales excluding tobacco, 5.3% YoY rise in supermarkets’ wholesale sales excluding tobacco, 1.6% YoY growth in liquor sales and 2.4% YoY jump in hardware sales.

Outlook

The company’s focus is on acquisition of complementary businesses, opening new stores, expanding into the adjacent markets, maintaining disciplined capital management and upgrading the existing stores.

The company is strengthening and extending its core competitive advantages through retailer tools and services, highly efficient distribution, a digital B2B marketplace and shared and scaled supply chains.  

Share performance of MTS

Shares of MTS closed 2.168% higher at AUD 3.77 apiece on 3 June 2024 with a market capitalisation of AUD 4.02 billion. With this, the share price has increased by 6.50% in the last one year and has surged by 5.01% in the past six months.

The 52-week high is AUD 4.060, recorded on 13 March 2024, and the 52-week low is AUD 3.410, recorded on 5 December 2023.

MTS Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 03 June 2024. The reference data in this report has been partly sourced from REFINITIV.