Grocery wholesaler’s profit drops 63{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} after diversification

 In Australia, Metcash/IGA, NewZealand

​Restructuring costs have led to a 63{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} drop in full-year profit for grocery wholesaler and retailer Metcash.

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However, Metcash’s sales reportedly rose in the year to April 30, 2012, and underlying profit grew by 2.5{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} to $262.5 million. However, restructure costs and the Franklins acquisition totalled $176.7 million, resulting in a full-year net profit of $90 million, down from $241.4 million in the previous year.

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Metcash also announced in a media release that it would raise up to $375 million by issuing new shares to bankroll growth opportunities. The group, which supplies groceries to IGA supermarkets, plans to use funds to buy out hardware store Mitre 10 and fund other non-grocery acquisitions. Australian Food News – Read More.

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