Metcash (MTS) shares gain on FY21 result
MTS +0.68%: shares in the wholesaling business rose today despite what look like a miss on first read. Metcash, which supplies into IGA stores as well as various liquor and home improvement brands, posted a 10% revenue gain, as well as a 27% gain at the NPAT line on FY20, however it still represented a ~6% miss to consensus numbers.
While FY21 was a miss, FY22 has started strongly with the first 8 weeks tracking better than feared with the market pricing in a significant slow down in sales as COVID impacts subside. Liquor and hardware are both showing better than 25% growth on FY20, before COVID helped boost sales. They also announced a $175m off-market buy back.
