IGA owner Metcash says sales across all retail pillars remain “strong” and the business is actively managing increased cost pressures.
For the year to April 30, group revenue rose 6.2 per cent to $15.8 billion while underlying tax-paid profit was up 4.6 per cent to $307.5 million.
Group CEO, Doug Jones, said both sales and earnings were at “record levels” as the business continued to face additional challenges associated with rate increases and cost of living.
“Our focus on further improving the competitiveness of our independent retail networks, as well as the success of our strategic acquisitions, particularly Total Tools, have been key factors in the strong performance.”
Total food sales grew 2.8 per cent to $9.6 billion on a normalised basis while supermarket sales rose 2.1 per cent and convenience store sales were up 9.7 per cent.
Liquor sales grew 8.3 per cent to $5.1 billion driven by strong demand “buoyed” by improved competitiveness, a preference for local shopping and at-home consumption trends.
The business opened 39 new IGA stores during the year and says it is “well positioned” to deliver growth and superior returns to shareholders.
For the first seven weeks of FY24, group sales have improved by 2.3 per cent, however, ongoing interest rate hikes have impacted consumer confidence across its retail networks.
