Metcash on track in Q1

Posted by Daniel Palmer on 4th September 2009

Metcash management have told shareholders that they anticipate meeting guidance in the current financial year as first quarter sales meet expectations.

Chairman Carlos Dos Santos said at yesterday’s AGM that the company had been delighted with their performance last year in light of the economic circumstances.

“2009 has been another successful year not only for Metcash as a whole, but for each of the Metcash business pillars which have all performed strongly. Metcash recorded its tenth consecutive record profit,” he advised. “I am happy to advise you that, notwithstanding the tough economic climate, sales for the first quarter are in line with our expectations.”

Chief Executive Andrew Reitzer told investors that the company had been the beneficiary of “customers shopping more at supermarkets and eating out less”. Their private label and fresh produce performance were particularly pleasing, with plans afoot to further enhance the private label offering.

Despite this, Mr Reitzer was reluctant to declare the economic downturn over.

“Economic environment remains challenging, though recent indications suggest that the situation may not worsen significantly,” he said. “First quarter sales remain strong albeit moderating given higher comparative base at the end of FY09.”

Reiterating guidance of 7-10 per cent growth in profit, Mr Reitzer said there “was no evidence” to suggest guidance could not be achieved.