Australian grocery distributor Metcash has reduced its 2011 full-year earnings guidance on the back of difficult trading conditions.

The company today (2 March) cut its earnings growth to between 3% to 5%, down on the previously forecast 6% to 8%.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The reduced forecast was based on continuing food and liquor price deflation, value-driven consumer behaviour, escalating utility costs, unseasonal weather and high interest rates. Metcash added that the natural disasters in Queensland and Victoria have impacted operations, but the “full financial impact is yet to be determined”.

The group said that its market share “remains stable” at 16.9%, “validating the competitive initiatives undertaken during the year to maintain Metcash and its customers as the third force in the grocery landscape”.

The group said that it was “concerned” about its ability to achieve its forecast when it announced its first-half results in November due to the “extremely tight trading conditions”.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now