Metcash (ASX:MTS) saw an uptick in shares, with a rise of as much as 2.9% to A$3.920, marking their highest level since May 15, 2023.

The company marked its biggest intraday percentage gain since January 9.

The supermarket wholesaler announced that its total food sales, excluding tobacco, increased by 5% during the ten months that ended on February 25.

Furthermore, Metcash reported a total group sales increase of 0.9% for the same ten-month period.

The company’s food and liquor segments have reportedly continued to perform well, supported by improved competitiveness and a differentiated value proposition.

According to analysts at Citi, Metcash’s trading update suggests that trading conditions have not significantly changed since its early February update.

However, Citi’s brokerage added that it continues to prefer Coles and Woolworths over Metcash, maintaining its ‘neutral’ rating on Metcash’s stock with an A$4.00 price target.

As of the last close, Metcash’s stock has increased by 9.2% year-to-date.

The story was reported by Ayushman Ojha and Echha Jain in Bengaluru.

Metcash is an Australian supermarket wholesaler.