FINWIRES · TerminalLIVE
FINWIRES

Metcash to Benefit From Food Inflation Tailwind, Says Jefferies

By

Metcash (ASX:MTS) is expected to benefit from a sales tailwind driven by ongoing food inflation worsened by the US-Iran war, Jefferies said in a note on Monday.

The wholesale distributor's pre-declared results hint at a notable recovery in liquor margins, and the company is poised to report its fiscal year 2026 results on June 22 in line with expectations.

The investment firm said improvement in the hardware segment is likely delayed, as it continues to struggle under tough macroeconomic conditions. However, much of the weakness is already reflected in the base, limiting further downside.

Jefferies said sales decline in tobacco, which fell by 29% in fiscal year 2026, may have bottomed and sees trends to stabilize as the impact of stricter enforcement and packaging rule changes begins to pass.

The brokerage expects management to comment on potential one-off items in fiscal year 2027 and further detail on progress towards more than $25 million in annualized cost savings.

Jefferies maintained a buy rating on Metcash and kept its AU$3.50 price target.

Related Articles

Asia

Singapore Regulator to Streamline 'Single Family Office' Framework

The Monetary Authority of Singapore has revised its "single family office" (SFOs) framework to streamline the process for SFOs to establish operations in Singapore, according to a MAS release.An SFO in Singapore is a privately held corporate entity set up by one "ultra-high-net-worth" family to manage assets, investments, and wealth of a single family.The registration protocols have been simplified, effective June 15, with offices required to notify MAS of their operations through a MAS-licensed bank.Annual reporting has been made more straightforward for SFOs, with information on total assets under management and the name of its bank.

^STI
Asia

Klevo Rewards Plans Stablecoin Trial Launch by June 30; Shares Fall 4%

Klevo Rewards (ASX:KLV) said it plans to launch a trial of its KLVAUD Australian dollar-backed stablecoin by June 30, according to a Monday filing with the Australian bourse.The company's Fly Wallet subsidiary received legal advice indicating that the stablecoin may qualify as an eligible stablecoin under the current regulatory framework, subject to conditions, per the filing.KLVAUD is planned to be fully backed one-to-one by Australian dollars held in segregated reserve accounts, and aims to support Fly Wallet's broader payments system, the company said.Klevo Rewards shares fell 4% in recent Monday trade.

ASX:KLV
Asia

Bio-Thera Solutions Gets Europe's Results on On-Site Inspection

Bio-Thera Solutions (SHA:688177) received the results of the European Union's inspection of its Yonghe manufacturing facility, according to a Shanghai bourse filing on Monday.The French National Agency for the Safety of Medicines and Health Products conducted an inspection on the site between Feb. 4 and Feb. 12.The European Medicines Agency handed a GMP or good manufacturing practice certificate to the company after the factory's drug substance operations passed regulatory standards. However, the regulator found deficiencies in the deviation management measures for the finished formulation of the drugs.

SHA:688177