.
Metcash Limited (ASX:MTS) plans to significantly reinvest into its grocery division after posting an 18 per cent drop in its annual profit amid tough trading conditions.
The grocery wholesaler reported a net profit of $169.2 million over the 2014 financial year as underlying net profit fell 10.9 per cent to $250.1 million.
The company cut its full year earnings guidance in March, citing costs associated with its strategic review and implementing changes.
CEO Ian Morrice says Metcash is investing significantly in the fiscal 2015 year for a reshaped model for Metcash Food and Grocery and for stronger growth in its other business pillars. Mr Morrice hopes the investment will build a company that can, once again, deliver strong shareholder returns.
The company has lowered its final dividend to 9 cent and its full-year dividend has been cut to 18.5 cents per share.
(20min delay)