Metcash underlying earnings aided by Home Timber & Hardware business
Shares of Metcash Limited (ASX: MTS) moved up 5.0% on 26th June 2017, after reporting 9.3% yoy growth in in underlying annual profit for FY17 and announced plans to resume dividend payments. The group revenue grew by 5.4% yoy to $14.12bn against $13.40bn in FY16. The improvement in underlying earnings was helped by income generated from its Home Timber & Hardware business, purchased last year, along with a robust performance from its liquor arm. Noteworthy progress has been made on the integration of Home Timber & Hardware, and the company is remained optimistic about the opportunities acquisition presents. MTS has announced a fully franked final dividend of 4.5 cents per share, payable in July. Further, the Wattle Health Australia’s deal with the company. WHA has entered into an agreement with Metcash Limited (ASX: MTS) to supply its GoldCare+ infant formula range across Metcash’s Australian grocery store network. The Company supplies and supports more than 10,000 independent retailers and over 90,000 wholesale customers across the food, grocery, liquor and hardware industries. Metcash’s retail customers operate some of Australia’s leading independent brands, including IGA, Mitre 10 and Cellabrations.. Under the agreement, Wattle Health’s GoldCare+ infant formula range (a premium range made in Australia and only using Australian ingredients) will be made available to grocery retailers across Metcash’s retail network. The deal is expected to significantly strengthens Wattle Health’s revenues through large distribution networks and increasing brand awareness in the Australian market as Metcash is a major player in the Australian grocery retail market and gives WHA a significant opportunity.
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