Grocery and liquor wholesaler, distributor and marketer, Metcash Ltd
(ASX:MTS) has reported a 36.4% rise in profit after tax to $109.2 million for the six months to October 31 compared to $80 million for the same period last year.
The result was underpinned by a 6.6% rise in wholesale sales to $5.6 billion despite increased competition in the grocery sector, lower levels of inflation and price deflation in the produce sector.
Metcash declared an interim dividend of 11 cents a share.
CEO Andrew Reitzer says the trading environment is strong, however low price inflation continues to hamper trading opportunities across all of the company’s business pillars.
Looking ahead the company reiterated its guidance of 7% to 10% growth in pre-abnormal earnings per share for the year to April 30 2010.
Metcash recently announced its intention to move into the hardware sector launching a takeover bid for Mitre 10.
Metcash posted net profit of $202.5 million for 2009.
