Supply chain disruptions and Covid-related lockdowns failed to dent grocery wholesaler Metcash’s performance during the latest financial year, with the company reporting “strong growth” in all divisions.
Group revenue rose 6.4 per cent to $17.4 billion in the full year to April 30, with profit after tax up by 18.6 per cent at $299.6 million.
Metcash’s food sales rose 1.4 per cent to $9.5 billion with like-for-like sales in the IGA store network increasing 2.9 per cent.
Hardware sales rose 20.5 per cent to $3.1 billion while liquor sales grew 8.7 per cent to $4.8 billion reflecting the return of on-premise liquor sales.
Releasing his first annual results as group CEO, Doug Jones said the results reflect the success of the company’s Mfuture initiatives which were designed to improve competitiveness in the retail networks.
“A strategic investment in inventory, the flexibility of our operations and the outstanding efforts of our people helped our retailers to keep their shelves stocked and continue serving their local communities through these challenges.”
New Victorian DC
The results release coincided with the announcement of a long-term lease of a new wholesale Distribution Centre in (DC) to be constructed in Truganina, Victoria.
The new 115,000sqm DC will be built by the Goodman Group for $70 million and will replace Metcash’s existing DC at Laverton. The facility is expected to help improve delivery efficiencies and access to a wide range of products.
It will also be equipped to support automation and house stock for the brand’s food and liquor departments.
Jones said this long-term investment will help independent retailers in Victoria. “Supporting our decision to proceed was the success of our new DC at Gepps Cross in South Australia, which has been operational since December 2020.”
Construction is expected to commence in the first half of the next financial year and will likely end in mid-2024.