Australian food and consumer goods retailer Metcash has said that it expects its recent Foodland takeover to become profitable in the 2007 financial year.

In November 2005, Metcash acquired Foodland's assets in West Australia and Queensland, including approximately 60 supermarkets. 

In a statement to the Australian Stock Exchange, Metcash said that it expects the acquired assets to generate between AUD80m and AUD90m (US$60.1-67.6m) before restructuring costs.

Metcash said that the bulk of profits will be made in the second half: "It should be noted that approximately 60% of the incremental earnings will be generated in the second half of the financial year," the company said.

Metcash said that if current trading conditions continue, it anticipates EPS of 22.5 to 25 cents in the 2007 financial year, before restructuring costs.

Restructuring costs for the year are expected to total AUD7m-AUD10m.