ASX 200 Growth Stocks Defying Volatility

Despite prevailing market volatility, some ASX 200 stocks have demonstrated strong resilience and are now showing renewed growth potential. Among these are dividend-paying stocks like Coles Group and Metcash, which have emerged as compelling additions to investors’ portfolios.

Coles Group Limited (ASX: COL)

Coles Group delivered impressive third-quarter FY25 results with a 3.4% year-on-year increase in total sales revenue to $10.38 billion. Supermarket revenue grew by 3.7% to $9.4 billion, and liquor sales rose 3.4% to $813 million. Although ‘Other sales’ declined by 9.3%, the company’s half-year results still showed strong performance with total revenue at $23.04 billion and an 8.9% growth in underlying EBIT.

The company’s emphasis on value-driven campaigns such as “Great Value, Hands Down” and its private label range, along with a clear digital transformation strategy, has accelerated eCommerce sales—up 22.6% in Supermarkets and 9.2% in Liquor. Coles is also investing in automation through new distribution and fulfillment centers, having recently signed an agreement to build a third Automated Distribution Center (ADC).

Coles declared an interim dividend of 37 cents per share, fully franked. The Simplify and Save to Invest initiative has already delivered $157 million in cost savings. Overall, Coles appears well-positioned to grow through customer-centric innovation, cost efficiencies, and digital investments.

Metcash Limited (ASX: MTS)

Metcash Limited, a key distributor supporting independent retailers, reported solid FY25 half-year results with Group Revenue rising 6.3% to $9.6 billion. While underlying EBIT held steady at $246.1 million, reported profit after tax was $141.8 million, up 0.6%. The company’s diversified model across Food, Liquor, and Hardware has helped it remain stable in a tough environment.

The Food division benefited from growth in Supermarkets and the acquisition of Superior Foods. Liquor performed well with higher sales and increased market share, though its earnings saw a minor dip. Hardware struggled due to weaker Trade activity, although market share was preserved.

Despite external challenges—ranging from inflation to weakening trade—Metcash’s adaptable and diversified portfolio provides it with the flexibility to support independent retailers while preparing to benefit from any recovery in market dynamics.

Conclusion

Both Coles and Metcash are noteworthy ASX 200 stocks showing strength amid turbulence. Investors seeking exposure to dependable dividends and diversified growth may find these companies suitable additions to their portfolios. Their robust business models and ongoing innovation make them well worth watching as economic conditions evolve.

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