Metcash’s $149m loss

METCASH has tumbled to an annual loss following a big writedown of its supermarkets and convenience-store assets but outlined plans to bolster shareholder returns by buying back shares.

Metcash, the group that supplies stores under the Independent Grocers of Australia umbrella, yesterday posted a net loss of $149.5 million in the year ending April.

The supermarket wholesaler was dragged down by impairment charges totalling $345.5m that were signalled earlier this month, a large chunk of which related to the recent loss of a major customer in South Australia, Drakes Supermarkets.

Metcash’s flagship food and grocery wholesale arm drives more than 50 per cent of group earnings.

But Metcash chief executive Jeff Adams said that other Metcash retail customers were very supportive of its supply chain and wholesale network and were not contemplating pulling out and following Drakes out the door.