Metcash profit slides amid supermarket wars
GROCERY wholesaler Metcash, supplier for IGA, has reported a sharp fall in its half-year profit.
The company made a net profit of $82 million in the six months to the end of October, which is down 13 per cent on its profit for the same period last year.
The supplier of IGA supermarkets says revenue was up 3.5 per cent to $6.34 billion, with its underlying profit after tax excluding one-off costs up 4 per cent to $121.3 million.
However, Metcash's chief executive Andrew Reitzer says conditions remain tough in the grocery sector, with increased competition between Coles and Woolworths pushing down grocery prices across the board and pressuring profit margins.
"The deflationary trading conditions are expected to continue and we are now expecting to maintain the higher marketing spend into the second half of the year," he noted in the report.
Read more at ABC news online.