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MTS, METCASH LIMITED
terrine
post Posted: Jun 26 2017, 12:50 PM
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Hi nipper, better than expected result and only 7% debt gearing now, a very strong balance sheet going forward.

 
nipper
post Posted: Jun 26 2017, 12:14 PM
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Metcash resumes dividends after its annual underlying profit rose a better-than-expected 9.3pc.

Sales revenue also rose by 5 per cent to $14.1 billion.

Food sales increased by 0.6 per cent to about $9.2 billion (BUT) Excluding a 53rd trading week, food sales fell by 1.3 per cent, amid intense competition in the grocery sector overall and tough economic conditions in Western Australia,

Net profit for the year through April totalled $171.9 million. The company attributed the 20 per cent decline partly to costs related to its recent acquisition of Home Timber & Hardware and implementing its “working smarter” savings program in its food and grocery business. The previous year’s profit also included proceeds from the sale of Metcash’s automotive business.

CEO Ian Morrice is retiring.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 5 2016, 02:52 PM
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QUOTE
Metcash (MTS) delivered a decent half-yearly result. Food and grocery sales via its IGA franchisees were a little softer than many expected, down -1.2% from the corresponding half in FY16.

That said, this is a good result given the context of the incursion of Aldi into the IGA heartlands of South and Western Australia, and is better than many in the market were expecting this time 6 months ago.

Hardware sales gained 9.6%, while management indicated that the synergies benefits to be extracted from the newly-acquired Home Timber & Hardware chain will be greater than first expected.

The result's strongest feature was cost reduction – we believe the market is still underestimating the extent to which this can continue to help support earnings.

For the supermarket industry as a whole, it seems that the period of ascendancy enjoyed by Coles as Woolworths (WOW) remained distracted has come to an end, with the Wesfarmers (WES) division now coming under pressure of more subdued sales growth after 3-4 years of a relatively free ride.

The industry remains competitive, however we continue to focus on any signs of an end to the discount-driven deflation in grocery prices as the intensity of this competition perhaps lessens. Metcash would be the greatest beneficiary of declines in deflation, given their wholesale distribution model
. BT



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
terrine
post Posted: Sep 7 2016, 11:12 AM
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RIGHTS ISSUE - taken my full allocation, subject to scale back.

 
nipper
post Posted: Jul 5 2016, 11:22 AM
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In Reply To: terrine's post @ Jun 21 2016, 09:58 AM

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Metcash (MTS) released their full year result. The hardware and liquor divisions continue to do well, although the result for its convenience business was disappointing.

However the crucial element for stock performance remains the IGA supermarkets, and in our view this result indicated that the pace of recovery in sales momentum at IGA supermarkets remains on track.

Management retain a degree of caution in their outlook for the next year given that the effect of Aldi's move into South and Western Australia still remains to be seen. However at this stage the effects do not seem to be too deleterious
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--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
terrine
post Posted: Jun 21 2016, 09:58 AM
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In Reply To: nipper's post @ Jun 21 2016, 09:51 AM

yes it was half good half not so good but rest assured they are not the only ones feeling tight retail conditions.
As stated a return to divs next year and all being right thats 12 months ahead of target.
Much more nimble than larger rivals, I see Woolies is expanding into express outlets, I think they should stick to core business, seems they havent learnt their lesson.

 

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nipper
post Posted: Jun 21 2016, 09:51 AM
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In Reply To: terrine's post @ Dec 1 2015, 03:50 PM

Metcash Limited (MTS) reported
QUOTE
underlying NPAT of $178.3m in FY16, up 2.7%.

Net debt was reduced from $392.3m to $275.5m, though no dividend was declared.

Management intends to recommence half yearly dividend payments with effect from the FY17 final dividend.

Food and Grocery sales increased 0.5%, though EBIT declined 17.0% due to increased price investment.

Liquor EBIT increased 7.8% and Hardware EBIT increased 9.0%.

price deflation running at -1.5% is hurting, however.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
terrine
post Posted: Dec 1 2015, 03:50 PM
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In Reply To: alonso's post @ Nov 30 2015, 12:09 PM

Hi,
the last 2 sessions dont seem to share your pessimism here, give it time its a 3 year story.

 
alonso
post Posted: Nov 30 2015, 12:09 PM
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In Reply To: cooderman's post @ Oct 12 2015, 11:25 AM

Food& grocery down 23%.
I can't see a long term future for them in this business.



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"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
cooderman
post Posted: Oct 12 2015, 11:25 AM
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MTS may make a move higher...hoping for a pull back to 120 and a possible entry....looks unlikely at the moment
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