Metcash, a conglomerate which owns multiple retailers including IGA and Mitre 10, announced a slightly higher profit for the six months to October 31.
On an underlying basis, MTS reported profits of $146.6 million — which was up 13.1% — and $128.8 million on a statutory basis, which was up 3%.
The company lauded the results which were in a period where it was affected by lockdowns, supply chain issues and mandated staff isolations.
It credited sales growth for consumer preferences shifting from cities to local neighbourhoods and regional areas.
As well as this, its Total Tools business (which Metcash only bought in June) had delivered a material contribution.
“It has been a very pleasing first half for both Metcash and our independent retailers, as we continue to build on the very strong prior corresponding half,” said CEO Jeff Adams.
“We remain well placed to continue delivering in our growth plans focused on further improving the competitiveness of our independent retailers.”
Metash rose by over 5% today and is up over 17% in the last 12 months.
Metcash (ASX:MTS) share price chart
Vulcan Steel (ASX:VSL), only listed a month ago at $7.10 per share and with today’s share price rise, reached a 20% gain since IPO.
The company released a positive trading update and reaffirmed its prospectus forecasts.
For the five months to November 30, the company’s overall revenue was up 35% and its steel segment grew 42%.
The company is tipping a profit between $93 and $100 million, having previously estimated $74 million.
“Trading has been stronger than anticipated and has been broad-based across all our Australasia business units, especially in October and November as Sydney and Melbourne emerged from COVID-19 restrictions,” said CEO Rhy Jones.
“As an industrial distributor and value-added processor, we remain confident of our ability to maintain our high service level and product availability to meet the needs of our growing and diverse customer base.”