De­fla­tion hits Met­cash Ltd

Townsville Bulletin - - Investor -

GRO­CERY and liquor whole­saler Met­cash Ltd has down­graded its full year earn­ings guid­ance be­cause of con­tin­u­ing food and al­co­hol price de­fla­tion. Met­cash brands in­clude IGA ( In­de­pen­dent Gro­cers of Aus­tralia), Cel­lar­bra­tions and Bot­tle-O, and has ex­po­sure to the hard­ware mar­ket through Mitre 10. The com­pany yes­ter­day said un­der­ly­ing earn­ings growth was ex­pected to be be­tween 3 per cent and 5 per cent. Chief ex­ec­u­tive Andrew Reitzer said de­fla­tion af­fect­ing the price of dry pack­aged gro­ceries was 1.7 per cent and that de­fla­tion on fresh prod­ucts about 11 per cent.

Andrew Reitzer

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