Thoughts on Metcash (MTS)

Hi Peter,

Metcash’s performance has been lacklustre of late, its up +1.6% so far in 2025, right in the middle of its peers Coles +3.2% and Woolworths -0.3%. The latter is waiting on a final report from the ACCC due to be released no later than February 28^th , there’s nothing like uncertainty to create short-term share price under performance.

MTS downgraded guidance in October sending the stock down over 10% and its taking time to regain investors confidence. However, in December we were encouraged by its trading update for the first four weeks of 2H25 which showed improved momentum in Liquor and Total Tools. We continue to like MTS for yield and its cheap, a rare find in today’s market:

• MTS is forecast to yield more than 7% fully franked over the next 12-months – MM holds MTS in its Active Income Portfolio.

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Metcash Ltd (MTS)

LAST UPDATED 13/02/2025 16:03

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Metcash Ltd (MTS)

LAST UPDATED 13/02/2025 16:03