Metcash Limited 2024 Annual General Meeting and Trading Update

Metcash Limited (ASX:MTS) has released its 2024 Annual General Meeting documents, including the Chairman's Address and CEO Presentation with a trading update. The company reported a 0.7% increase in group revenue to $18.2 billion and a significant 29.5% growth in operating cash flow to $483 million for the fiscal year 2024. Underlying profit after tax decreased by 8.2% to $282.3 million, mainly due to more challenging conditions in the Hardware segment. Metcash maintained its total dividends for the year at 19.5 cents per share fully franked, in line with the target payout ratio of approximately 70% of underlying profit after tax.

Chairman's Address and CEO Presentation Highlights

Metcash's Chairman provided an overview of the company's performance in FY24, highlighting the strong results underpinned by the success of its strategy and disciplined execution of key initiatives. The Food and Liquor segments delivered strong earnings growth, while the Hardware segment outperformed the market and maintained a strong market position despite challenging conditions. The Group CEO emphasized the company's strategic acquisitions in the Food and Hardware pillars, aiming to strengthen market positions and accelerate growth. The company also made significant progress in its ESG plans, achieving good results in emissions reduction, waste diversion, and workplace engagement.

Outlook for FY25 and Strategic Direction

Metcash remains focused on delivering future growth despite challenging economic conditions. The company's diversified business platform and recent acquisitions position it for continued growth and strong returns. With a strong financial position and a sound business, Metcash aims to maintain a value offering with competitive prices and adaptability to meet shoppers' needs. The company's strategic focus includes leveraging its platform for M&A growth, enhancing performance, and delivering unique value. Metcash also continues to make progress in its ESG plans, aiming to achieve its emissions reduction and waste diversion targets. Looking ahead to FY25, the company remains cautiously optimistic about trading and is focused on executing cost and cash initiatives, as well as progressing core technology initiatives.