SYDNEY — Metcash Ltd. shares have risen the most in more than six months after the supermarket supplier increased its dividend and highlighted strong sales at the start of its new fiscal year.
Metcash on Monday reported a net profit for the 12 months through April of 254.4 million Australian dollars (US$176.6 million), compared with A$239.0 million a year earlier. It raised its final dividend to 11 Australian cents from 9.5 Australian cents, taking its full-year payout to 21.5 Australian cents, up 23% on year.
The stock was 6.3% higher at A$4.39 after about an hour of trade, putting it on course for its largest daily percentage gain since early December 2021.
Metcash said that its 2023 fiscal year had started strongly. Sales for the first seven weeks from May 1 were up 8.6% on year, partly related to higher inflation. It said food sales were up 5.0% on year, or 7.7% excluding tobacco.