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Metcash delivers strong first-half result despite pandemic

IGA online grocery
IGA stood up a website for its national retail network in four days. Image: Supplied.

Metcash weathered the storm of Covid-19 well, the business revealed today, with revenue increasing 12.2 per cent during its FY21 half-year results, and earnings growth of 30.4 per cent, respectively to $7.1 billion and $203 million.

Profit after tax also jumped 43 per cent to $129.6 million during the half off the back of a consumer-led movement to shop locally, which drove strong uptake at its IGA supermarkets.

“Our retail banner groups are ideally positioned to continue benefiting from [this behavioural change],” said group CEO Jeff Adams.

“It was pleasing to see our retailers continue investing in growing their businesses, including new stores and refurbishments despite challenging circumstances.”

Supermarket sales grew 13 per cent during the half, and IGA specifically saw like-for-like sales jump 16.4 per cent.

Convenience sales fell 16.4 per ecnt, while liquor sales increased 14.3 per cent.

Metcash’s hardware division, which purchased Total Tools during the half, grew sales 20.6 per cent, while online sales more than doubled.

And, according to Adams, these trading conditions have continued into the second half, with sales momentum staying relatively strong in the first five weeks of trade.

“We’re also expecting strong trading over the Christmas and New Year period,” said Adams.

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