Strategic rationale for the acquisitions slide image

Strategic rationale for the acquisitions

Trading update and outlook Group . Total Group sales for the nine months ended 28 January 2024 increased 0.9% compared to the prior corresponding period, reflecting growth in the Liquor and Hardware pillars, with sales in Food (including tobacco) flat Total Group sales in Q3 of FY24 were 0.4% lower, driven by moderating inflation and a shift in the Christmas / New Year holiday period, with builders breaking earlier and returning later than in the prior corresponding period Both the Food and Liquor pillars have continued to perform well supported by their improved competitiveness and differentiated value proposition In Hardware, while demand has remained subdued in Q3, the business continued to perform better than the market and remains ideally placed with leading market positions to capitalise on an improvement in consumer confidence and activity levels Continued strong focus on costs, interest and working capital The Group EBIT margin percentage for the eight months to December 2023 was broadly in line with 1H24 Metcash remains well positioned for future growth and strong returns through the cycle with a resilient and diversified business portfolio Pillar sales - Nine months ended 28 January 2024 Food • Total Food sales ex-tobacco increased 5.1%, and are flat including tobacco • Supermarkets wholesale sales ex-tobacco increased 5.3% Liquor Volume growth in Q3 Inflation continued to moderate (YTD: 5.6%, Q3: 3.9%) • Total Liquor sales increased 1.4% Wholesale sales to retail customers +1.5% Wholesale sales to on-premise customers -1.5% Hardware • Total Hardware sales increased 2.6% IHG sales decreased 0.5% Total network sales² YTD: +0.6% (LfL: -1.5%) • Total Tools increased 17.5% Total network sales³ YTD: +2.8% (LfL: -2.6%) 1. 2. Sales information is presented for the nine months ended 28 January 2024 (YTD), versus the prior corresponding period (except as noted). Q3 represents sales during the three months of the third quarter (Nov-23 to Jan-24). LfL represents 'Like-for-Like' sales. Sales includes charge through revenue IHG retail network sales based on a sample of 371 retail network stores that provide scan data (represents >85% of sales) 3. Total Tools retail network sales based on 114 network stores scan data as at 27 January 2024 Metcash 43 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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