Metcash profit sinks in 2012

Metcash has posted a significant drop in full-year profit, down 62% to $90 million for the 12 months ending April 2012.

The company also said revenue had fallen 0.8% to $12.3 billion, even though sales rose and underlying profit actually increased by 2.5% to %262.5 million.

In a statement to the ASX, the company said EBITDA had risen 3% to $451.2 million, but that full-year profit was down due to the difficult retail environment, along with costs associated with its restructure.

“Over the last 12 months, the group has dealt with a range of challenging issues, including weak consumer sentiment, the strong Australian dollar and a marketing war between the two national grocery chains, which has contributed to the deflation experienced in dry grocery and fresh product,” the company said.

This article first appeared on SmartCompany.