Metcash Has Recorded a Drop in First-Half Earnings as a Results of Store Closures

Australian retail distributor Metcash has recorded a drop in first-half earnings as a results of store closures in the period.

Earnings in the six months to the end of October dropped 13.1% to A$82m (US$85.4m), the retailer said today (30 November). Metcash said the decline was a result of the closure of more Franklins stores than expected, due to delays in the acquisition caused by the competition watchdog's legal challenge to the transaction.

As a result, the retailer downgraded its earnings guidance to a fall of 2-6%. The group had previously estimated a 1-3% fall in underlying EPS for the year.

EBITA, however, grew 1.2% to A$206.2m, while sales rose 3.5% to A$6.34bn.