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... ...Read more »

Grocery wholesaler Metcash has reduced its 2011 full-year earnings guidance on the back of difficult trading conditions. The company yesterday cut its earnings growth to between 3% to 5%, down on the previously forecast 6% to 8%. The reduced forecast was based on continuing food and liquor price deflation, value-driven consumer behaviour, escalating utility costs, unseasonal weather and high interest rates. Metcash added that the flooding in Queensland and Victoria has impacted operations, but the... ...Read more »

Australian grocery wholesaler Metcash has booked a rise in first-half underlying earnings, but cautioned it may not be able to hit its full-year targets. Metcash said the continuation of the “extremely tight trading conditions” in the first half will “exert pressure” on its ability to achieve its full-year guidance. The company said the strong Australian dollar meant it was facing falling food prices while facing higher labour and utility costs. The wholesaler also cited an... ...Read more »

Discount supermarket chain Franklins has been acquired by its former wholesale supplier, Metcash Trading Ltd, in an unsolicited $215 million offer to its current owner, South African chain Pick n Pay. The sale, pending approval from the ACCC, will also bring to an end all current litigation between the two groups. Franklins won a legal stoush with Metcash over discounted wholesale prices in December 2009. Metcash will acquire the company’s 85 supermarkets, including 77 corporate outlets and... ...Read more »

According to AUSVEG, the price of vegetables in Australia has fallen by more than 5% in the last week AUSVEG CEO Richard Mulcahy said that wholesale vegetable prices had retreated in recent weeks, after a strong run from January until mid-March. “If you look at the figures in recent weeks, prices at the wholesale level have pulled back sharply and the wholesale vegetable market is a key indicator for the retail sector,” Mr Mulcahy said. “This is actually a great time for consumers to be buying... ...Read more »

Unease and uncertainty has been provoked among international food retailers in India by new restrictive guidelines issued that limit the already-restricted foreign investment in the country’s organised retail sector.India’s retail sector has held back foreign direct investment (FDI) but many in the sector was expecting a gradual liberalisation of rules on the ability of local players to strike deals with overseas partners. Instead, the Congress-led government has taken an unexpected step... ...Read more »

Grocery and liquor wholesaler Metcash has reported growth above market guidance, despite economic conditions, and continues strong competition in the supermarket sector. Metcash today announced 12.1 per cent growth in EBITA to $382.5 million, and wholesale sales up by 9.3 per cent to $10.97 billion for the year ended April 30. The company’s key business, IGA Distribution (IGA>D) posted strong growth in EBITA (Earnings Before Interest Tax and Amortisation) – with wholesale sales growing... ...Read more »

Grocery and liquor wholesaler Metcash Limited has seen profit fall 7.1 per cent in the six months to October 31, 2008 due to a one-off interest hedging termination cost, but profit after tax and pre non-recurring item rose 12.9 per cent from $86.2 million to $97.3 million. An 8.2 per cent rise in wholesale sales to $5.3 billion was recorded “despite challenging economic conditions and strong price competition in the retail sector”. Metcash Chief Executive Officer, Mr Andrew Reitzer said... ...Read more »

Australian grocery and liquor wholesaler Metcash maintained earnings guidance of after tax profit of almost $197 million on the back of sales revenue expected to pass the $10 billion mark for the first time. The third largest player in the grocery industry, Metcash came under scrutiny from the ACCC during the recent Grocery Price Inquiry, but Chief Executive Andrew Reitzer was content with the outcome. Pleased with the “creeping acquisitions” proposals and “workably competitive”... ...Read more »

Fraudulent activity has been discovered in the UK which could be leading to the sale of unsafe food. The Food Standards Agency and police are warning food companies to be on the alert to a fraud, which involves identity theft, that may have affected a number of food businesses across the country. The fraudsters are alleged to have targeted small legitimate wholesale food businesses that supply meat, seafood and fruit and vegetables. The alleged offenders work by acquiring authentic letter heads of... ...Read more »