Metcash first half results showed earnings are holding up in its food and liquor divisions but falling in its hardware unit after several strong years of growth.
Metcash declared an interim dividend of 11¢ per share payable on January 30, down from 11.5¢ a year ago.
The company announced a new $14 million to $16 million cost-savings program, kicking of in the second half.
Doug Jones’ Metcash defied smaller basket sizes to extend its run of sales growth into the second-half of the new financial year, boasting improved foot traffic and better private-label demand at independent IGA supermarkets.
Mr Jones told The Australian Financial Review that shoppers were hitting up its local stores as frequently as ever, but baskets were down slightly, which was “certainly weighing on us”.
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Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
