Grocery wholesaler Metcash, which is involved in moves to acquire retailer Foodland, has announced a rise in profits for the year, despite a fall in sales revenue, following strong performances by its IGA Distribution and Campbells Cash & Carry divisions.
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Before goodwill on consolidation of the newly acquired Metoz companies, the Group’s net profit after tax rose to A$110.1m (US$84m) in the 52 weeks to April 30 2005, from $98.9m the year before.
After Metoz goodwill amortisation, profit after tax for the year was $104.9m, compared with $101.8m the year before
Sales revenue was $6.994m, compared with $7.174m the year before.
Metcash’s implementation of major supply chain initiatives – with the creation of major distribution centres, new voice picking technology and closer collaboration with suppliers – improved operating efficiencies and customer satisfaction levels across the group during the financial year, the company said.
“The anticipated takeover of Foodland Associated Ltd’s Australian businesses will fulfil our long held ambition to become the third force in the Australian retail market,” said CEO Andrew Reitzer. “There are tremendous synergies and economies of scale to be gained from Foodland’s Australian operations and they will be efficiently integrated into our existing three business pillars.”
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By GlobalData“Metcash is expected to further grow from its strong brands, continued cost efficiency gains, balance sheet restructure and the anticipated integration of Foodland’s Australian operations,” he said.
