Metcash sees sluggish begin to the 12 months as 7-Eleven contract loss bites


Like-for-like gross sales for the IGA community rose zero.four per cent, in comparison with a zero.2 per cent drop within the final half, a consequence Mr Adams mentioned was “pleasing” and reflective of improved shopper confidence.

Metcash CEO Jeff Adams.

Metcash CEO Jeff Adams. Credit score:Peter Braig

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“I’m happy to report that our supermarkets enterprise delivered wholesale gross sales development, together with on an ex tobacco foundation after adjusting for the impression of ceasing to produce Drakes,” he mentioned.

“That is the primary reported improve in wholesale gross sales ex tobacco since [the 2012 financial year].”

Metcash’s liquor divisions, which incorporates manufacturers like Cellarmasters, reported a 1.7 per cent uptick in gross sales and its sixth consecutive 12 months of earnings development, which edged up $500,000 to $29.6 million.

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However the firm’s Mitre 10 and House Timber and manufacturers slumped considerably, with gross sales down four.2 per cent as a consequence of a slowdown in building exercise and the loss of a big Queensland buyer. Earnings have been additionally down by $500,000.

For the remainder of the monetary 12 months, the corporate is predicting complete grocery store gross sales to lower, largely as a result of Drakes contract loss, and the slowdown in its division to proceed.

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“Our monetary place stays robust and this supplies us with flexibility to fund our present initiatives, in addition to take into account future development alternatives that create worth for our shareholders,” Mr Adams mentioned.

Metcash pays shareholders a dividend of 6 cents per share, down zero.5 cents on the prior half and payable January 23.

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