Metcash, the Australian supermarket supplier, has reported a net profit of AUD 259.0 million for the 12 months ended in April, up by 5.5% from the previous year. It also showed a rise of 2.6% in profit on an underlying basis to AUD 307.5 million during the same period. The company’s revenue increased by 4.2% to AUD 15.80 billion, with a final dividend of AUD 0.11 per share declared for a full-year payout of AUD 0.235 a share, up 4.7% YoY.
Metcash continues to see sales growth at the start of the current fiscal year, with sales up by 2.3% over the first seven weeks of 2024 fiscal year. However, the company has cautioned that changing consumer behavior and reduced consumer confidence due to inflation and higher interest rates may affect its retail networks in the future.
Impacts of Changing Consumer Behavior
“While demand continues to be solid in all pillars, the impact of higher interest rates and cost of living has started to impact consumer confidence and the behavior of some customers and shoppers in our retail networks,” Metcash stated in a market filing.
The company’s experience highlights how rising prices and fears of inflation can alter consumer behavior, affecting the sales figures of retailers across different sectors.
