Metcash Limited (ASX:MTS) has reported a 14 per cent fall in its first-half profit but boosted its guidance for the full year.
The grocery wholesaler generated a net profit of $94.4 million in the six months to the end of October, weighed down by one-off costs relating to its purchases of Franklins supermarkets.
Revenue added 1.7 per cent and earnings before interest, tax, depreciation and amortisation were 2.2 per cent higher than the year before.
Metcash says it continues to face price deflation across a range of categories with consumers remaining price conscious in an uncertain economic climate.
The company expects to deliver low- to mid-single digit growth in underlying earnings per share for the full 2012 financial year, compared to a previous forecast of low single-digit growth.
A fully franked interim dividend of 11.5 cents per share has been declared.
In the 2011 financial year Metcash reported a net profit of $251 million.
