MTS +2.24%: Reported 1H25 results this morning that were inline with company guidance and slightly ahead of consensus, which had been downgraded about a month ago. The kicker today was better momentum in the first 4 weeks of 2H25 which shows some tentative signs of improvement.
- 1H25 underlying NPAT of $135 million was in line with recent guidance and 1.5% ahead of consensus.
- Food beat while Hardware and Liquor missed expectations.
- Interim dividend of 8.5 cps FF was declared, below 10 cps expected
- Importantly, group sales are up 8% for the first four weeks of 2H25.
Overall, an inline result for the half, though expectations had been materially lowered recently. The trading update to start the 2H was clearly positive and flew in the face of recent updates from Woolworths (WOW) & Coles (COL) in terms of food and Endeavor Group (EDV) in terms of Liquor. Expectations for FY25 are for underlying NPAT of $274m so we expect upgrades to this given early 2nd half momentum. We hold MTS in the Active Income Portfolio.
MM is now cautiously bullish on MTS.
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