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General Information

Metcash Limited
MTS
http://www.metcash.com
Food Distributors
1,272
928

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$1.35 $1.38 $1.39 $1.34 $1.37 5647596 $0.03 ( 1.82% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Sell
17/04/2015
3

Company Overview

Business Description
Metcash Limited (MTS) is a wholesale distribution and marketing company specializing in grocery, fresh food, liquor, hardware and automotive parts & accessories. MTS operates predominantly in Australia and a smaller liquor business in New Zealand.
Strategy Analysis
Food distribution is the main growth driver, realising solid growth and margin improvement through scale efficiencies. The lack of real competition from Coles has allowed larger format Woolworths to capture significant market share for superior earnings and margins while IGA independent stores, backed by MTS, find favour across smaller catchment areas. MTS will use its balance sheet to fund inventory expansion by easing credit terms for larger stores. The aim is to encourage independent operators to invest more free capital into stores. Improved fit out and customer service boost the shopping experience. Metcash reported NPAT down 13.1% to $82.0m for the half-year ended 31 October 2012. Revenues from ordinary activities were $6.34bn, up 3.5% from the same period last year. EBITA lifted 1.2% from $203.7m for 1H12 to $206.2m for 1H13. Diluted EPS was 9.75 cents compared to 12.24 cents last year. Net operating cash flow was $144.7m compared to $252.4m last year. The interim dividend declared was 11.5 cents compared with 11.5 cents last year. The company reported that it has revised its full year underlying EPS guidance to -2% to -6%.

Financial Summary

Year to Apr NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 151.8 17.2 -5.8% 8.0 15.7 11.4% 100.0%
2015 F 161.1 18.3 -33.9% 7.5 16.6 12.1% 100.0%
2014 A 244.3 27.7 -10.8% 11.9 18.5 5.6% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Metcash (MTS) $1,295M -0.0843 -0.2361 -0.0730 4.9241 6.4464 6.9541 13.26% 9.32% 9.32%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.33 6.28 0.77 10.00
Market 0.91 16.40 1.29 2.36
Sector 0.55 17.50 2.53 10.00

Directors

Name Position Start Date
Mr Ian Rognvald Morrice Chief Executive Officer, Executive Director 12/06/2012
Mr Peter Leslie Barnes Non-Executive Chairman 18/04/2005
Mr Neil Douglas Hamilton Non-Executive Director 07/02/2008
Mr Michael Roy Butler Non-Executive Director 08/02/2007
Mr Michael (Mick) Peter McMahon Non-Executive Director 27/11/2013
Mr Edwin M Jankelowitz Non-Executive Director 18/04/2005
Mrs Fiona Elizabeth Balfour Non-Executive Director 16/11/2010
Mr Patrick Newton James Allaway Non-Executive Director 07/11/2012
Ms Tonianne Dwyer Non-Executive Director 24/06/2014

Management

Name Position
Scott Marshall CEO - Australian Liquor Marketers
Mark Laidlaw CEO - Mitre 10 Australia
Fergus Collins CEO - Supermarkets, Metcash Food & Grocery
Arian Gratwicke Chief Financial Officer
Gregory John Watson Company Secretary

Substantial Shareholders

Holding Name
75,446,836 (8.49%) BlackRock Group
55,970,784 (6.30%) Allan Gray Australia Pty Ltd
45,097,817 (5.08%) Lazard Asset Management Pacific Co
44,568,515 (5.02%) Maple Brown Abbott Limited

Calendar of Events

Date Event
30 November 2015 Report (Interim)
30 November 2015 Report (Prelim)
24 July 2015 Report (Annual)
22 June 2015 Report (Prelim)
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