Metcash’s hardware division, which consists of Mitre 10, Home Timber & Hardware and recently acquired Total Tools, drove much of the growth for the half, with sales up 17.9 per cent to $1.48 billion and earnings booming 53 per cent to $98.9 million.

Much of this growth was due to Total Tools, which the company acquired late last year. Mr Adams said Metcash was continuing to keep an eye out for new acquisitions, noting the hardware space continued to be “fragmented”.

“But the challenge right now is, similar to ourselves, most of these guys that we’d be looking at have also done quite well, so to try to get to a valuation that makes sense is a challenge,” he said.

Looking to the business’ second half, which includes the key Christmas period Mr Adams said he was expecting to trade well through the holidays, with early signs indicating strong spending: food sales grew 2.3 per cent for the first five weeks of the half, liquor sales grew 7.6 per cent, and hardware sales soared 20.1 per cent.

Shares in the company spiked 5 per cent to $4.17 on Monday. The retailer’s shares have risen nearly 20 per cent over the past year.