Metcash net income grows in 2010
Grocery distributor Metcash reported an increase in net income for 2010, which it attributed to the “steady performance” and “resilience” of its independent retail customers.
The group said yesterday that net income rose 6.1% in the year ended 30 April to reach $241 million
Revenue was up 7.4% to reach $12.5 billion, while wholesale revenue rose 7.4% to $12.36 billion.
“We are pleased to once again announce another creditable result, particularly given the challenging trading conditions experienced by our industry this past year. Metcash’s result was achieved through the steady performance and resilience of its independent retailer customers,” said CEO Andrew Reitzer.
The company and its independent retailer network opened some 65 new stores over the year, with some 56 stores operating under Metcash’s IGA brand. Some 17 independent retailers converted to IGA from other store brands.
“All divisions within the group remain focused on improving operational efficiency in the prevailing low inflationary environment and we continue our substantial investment in modernising the independent sector’s support structures and supply chain,” said Reitzer.
Reitzer added that the development of its “mega distribution centre” in New South Wales is “well ahead of schedule”.
The company, which was blocked by the Australian Competition and Consumer Commission from acquiring rival Franklins late last year, said that a decision in its appeal to the Federal Court is “imminent”.
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