![]() ![]() Metcash’s underlying earnings rose 30 per cent to $203 million in the six months ending October, underpinned by strong growth in all three business pillars and higher profits from its stakes in joint-venture stores such as Ritchies, Cornett’s and Drakes.Īnalysts expect earnings growth to remain strong in the six months ending April, citing continued strong spending on food, liquor and hardware and the ongoing shift to neighbourhood stores. AFRĬonsumers spending more time at home are not only buying more food, groceries and packaged liquor, they’re favouring small neighbourhood stores such as Metcash’s IGA retailers and Cellarbrations, Bottle-O, Thirsty Camel and Porters Liquor stores, which are taking market share from the major chains.įlush with cash after saving $187 billion during the pandemic and unable to travel overseas, consumers have been upgrading their homes, undertaking small DIY jobs and major renovations, fuelling strong sales growth at Metcash’s Mitre 10, Home Timber and Hardware, Hardings and recently acquired Total Tools stores. Metcash’s IGA retailers are regaining market share as consumers switch to neighbourhood stores. Metcash has not only defied the Magellan Financial Group founder’s dire predictions, but the wholesaler is in its strongest position in ten years, according to Jarden analyst Ben Gilbert, after winning the trifecta of surging food, liquor and hardware sales. Six years ago leading fund manager Hamish Douglass predicted wholesaler Metcash would probably be out of business in 10 years, squeezed out of the market by Woolworths, Coles and Aldi.
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