MTS -2.38%: A mixed result for MTS today, with FY24 Sales of $18.2bn up +0.7% for the year and inline with consensus and this dropped down to reported Net Profit After tax (NPAT) of $257.2m, down -0.7%, and around 4% below consensus. The dividend of 8.5cps for the half took the full year dividend to 19.5cps, which was slightly ahead of the streets 19.1cps expected.
Food, Hardware & Liquor earnings were all slightly ahead of expectations, however so too were corporate costs which primarily drove the miss to earnings. Trading to start 1H25 showed a further slowdown in food sales (yet margins were resilient on 2H24), while Hardware has been weaker than hoped, and the main underwhelming feature of todays update. They also guided to higher financing costs for the year ahead.
- The result will likely lead to broker downgrades, though the shares saw the worst of it early, recovering more than half the losses to close only modestly lower. We continue to like MTS.
MM remains positive on MTS, despite a weaker result today
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