Metcash net profit rises 3pc to $95.8m
Summary
Group chief executive Jeff Adams told The Australian Financial Review Metcash had a good track record of reducing costs but as the Working Smarter program came to an end it needed a "more balanced" focus to revive sales and was shifting to a new program dubbed MFuture. Net profit rose 3 per cent to $95.8 million in the six months ended October 31 as strong growth in hardware and modest gains in food were partly offset by weaker liquor earnings following the adoption of a new accounting standard which excludes charge-through sales. "We think this is a pretty good set of results weve put together, based on the challenges out there in the market," said Mr Adams. However, Mr Adams warned that industry conditions remained competitive and second-half earnings would be hit by about $8 million of additional investment, mainly in the new express format and loyalty program. But sales to IGA retailers declined just 0.2 per cent on a same-store basis, an improvement on the 1.1 per cent decline in the same period last year, prompting Mr Adams to say retailers in Western Australia were "over the worst" and South Australian stores had stabilised after losing share to Aldi.