Morgan Stanley flags margin pressure for Australia's Metcash amid high costs

Metcash

25/06/2024 05:52

** Analysts at Morgan Stanley say supermarket wholesaler
Metcash Ltd's  MTS.AX  retail margins are under pressure due to
rising costs
    ** Co posts FY net profit attributable A$257.2 million
($170.50 million), lower than A$259 million recorded last year
    ** Shares rise as much as 1.2% to A$3.735
    ** Morgan Stanley says co's food and hardware sales in the
first 7 weeks for FY25 decelerating vs FY24
    ** Says more competitive pricing behaviour by Coles  COL.AX 
and Woolworths  WOW.AX  and accelerated Aldi store rollout could
pose as risks 
    ** Stock up 5.73% this year as of last close, vs a 1.9%
increase in the benchmark S&P/ASX 200 index  .AXJO  


 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))