Metcash’s reported 1H23 sales growth of 8% and EBIT growth of 10%. Price inflation drove more than half the sales growth and will remain a key driver over the next 12 months. There will be some normalisation in Hardware sales, but its mix of business supports margins. The Food business will benefit from stock profits and is holding market share. While 1H23 had weak cash flow, the result will mostly normalise in 2H23e and a higher working capital position is the reality of having more hardware and less tobacco sales.