National grocery and liquor wholesaler, distributor and marketer, Metcash Ltd, has posted a 105.5 per cent rise in net profit to $166.8 million for financial year 2007.
Metcash told the Australian Stock Exchange that its revenue for 2007 was up 18 per cent to $9.7 billion, sales were up 22.7 per cent to $9.5 billion, and earnings before interest, tax and amortisation (EBITA) were up 38.8 per cent to $315 million after non-recurring items.
Metcash declared a final dividend of ten cents fully franked, making a total dividend for the year of 17 cents, up 48 per cent.
The company's chief executive, Andrew Reitzer, said the result capitalised on the strong first half of the financial year.
Looking ahead, the company said sales in May continued to be satisfactory.
But it said the retail food and liquor market continued to be affected by uncertainty surrounding the possible sale and break up of Coles Group.
As a result, it said earnings growth for the 2008 financial year was expected to be in the "high single digit range".
"The result reflects both a solid underlying performance by the core operations as well as the gains flowing from the acquisition of the Foodland Associated Ltd (FAL) Australian operations," Mr Reitzer said.
Mr Reitzer said Metcash has been successful in achieving its targeted $80-90 million FAL profit and synergy increases.
The company posted gains of $87 million.
He added the one-off restructuring costs and retail losses on the performance of FAL's former Action stores were exclusive to first half trading.
"In Metcash's core distribution division, retailer confidence remains high as evidenced by new store growth and store reinvestment and sales growth," Mr Reitzer said.
MTS Price at posting:
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