Metcash expects stable but low growth
Grocery wholesaler Metcash Ltd has released their annual results, including a 12.4% rise in annual net profit and an expected earnings growth next financial year.
Revenue was up to $11.61 billion, a 4.9% increase from last year, and a final dividend of 15c per share was posted.
The company said it expected low sales growth in the food and liquor sectors, continuing into December this year, as a result of the fading of the benefits generated by the Government’s economic stimulus package, along with low food price inflation and interest rate rises.
“All divisions have focused on cost containment in the prevailing low-price inflationary environment, while continuing to secure further supply chain improvements and technological innovations to improve warehouse throughput,” chief executive Andrew Reitzer said.
“While current trading conditions remain subdued, we are confident of further growth in our earnings per share in the 2011 financial year, subject to economic conditions remaining stable.”
Metcash operates the Campbell’s Cash and Carry brand and Australian Liquor Marketers, as well as supplying independent supermarket chains Foodworks and IGA.