Stock of the day: Metcash Limited
Metcash reported 6.1% sales growth, driven by acquisitions and easing inflation, with strong performances in food, hardware, and liquor.
(AI video summary)
This video was created on 13 September for IG audiences by ausbiz.
Stock of the day: Metcash (ASX:MTS)
Metcash, which held its annual general meeting (AGM) alongside a trading update. The company reported a 6.1% rise in total sales for the financial year up to 8 September, driven by solid growth across its divisions, partly due to recent acquisitions.
Food division performance and inflation easing
Metcash’s food division has performed well in a cost-conscious environment. At the AGM, the company highlighted a moderation in inflation, helping to stabilise costs. Metcash is focused on integrating recent acquisitions and improving cost and cash management. Following this update, the company’s share price rose by 0.8% by midday in Sydney.
Metcash’s defensive appeal and Project Horizon
Though Coles and Woolworths dominate the Australian supermarket industry, Metcash is undergoing a technology transformation called “Project Horizon,” aimed at modernising its operations. Despite tough competition, Metcash is viewed as a defensive stock that appeals to investors seeking stability. Its core divisions—food, hardware, and liquor—offer steady revenue, with low single-digit growth and a reliable dividend yield.
For investors looking for defensive plays, Metcash is an attractive option. However, significant capital growth may be difficult, given the competition in the market.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
