We initiate coverage on Noumi, an Australian fast-moving consumer goods company specializing in the production, marketing, and distribution of dairy and plant-based beverages, nutritional products, and functional ingredients. Noumi has state-of-the-art facilities for the production of UHT and plant-based milk products with capacity to service export market growth opportunities. There is upside potential from new product development and improved yield efficiency.

Metcash provided a trading update indicating 1H25e underlying NPAT will be between $132-$135 million. The key driver has been the decline in sales and negative operating leverage in Metcash’s IHG hardware stores. Tough conditions are likely to prevail in 2H25e as well, albeit we are at a low point in the building cycle, providing scope for margin recovery at some point.