Metcash, the owner of IGA, has reported that sales in all areas of its retail business remain robust and that it is actively addressing the challenges of increased costs. In the period ending on April 30, the company’s overall revenue increased by 6.2 percent to reach $15.8 billion, while its underlying tax-paid profit rose by 4.6 percent to $307.5 million.
The CEO of the group, Doug Jones, stated that both sales and earnings have reached “record levels” despite the additional difficulties posed by rising rates and the cost of living. The company attributes its strong performance to its efforts to enhance the competitiveness of its independent retail networks and the success of strategic acquisitions, particularly Total Tools.
The food segment experienced a normalised growth of 2.8 percent, reaching $9.6 billion, with supermarket sales increasing by 2.1 percent and convenience store sales rising by 9.7 percent.
Liquor sales also saw significant growth, with an 8.3 percent increase to $5.1 billion, driven by high demand resulting from improved competitiveness, a preference for local shopping, and the trend of at-home consumption. Throughout the year, the company opened 39 new IGA stores, positioning itself well for future growth and delivering favorable returns to shareholders.
However, in the first seven weeks of FY24, group sales only saw a modest improvement of 2.3 percent, as consumer confidence was affected by ongoing interest rate hikes impacting its retail networks.
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