April 3, 2012

Metcash To Restructure Business

[caption id="attachment_21756" align="alignleft" width="210" caption="Metcash To Restructure Business"]Metcash To Restructure Business[/caption]

Metcash Limited (MTS) is a leading marketing and distribution company operating in the food and other fast moving consumer goods categories.

MTS operates via three business units: IGA Distribution (retail), Campbells Cash & Carry (wholesale) and Australian Liquor Marketers (ALM; liquor wholesale).

Metcash announced that it will restructure its business, cut 478 jobs and incur one-off charges to position the company for ongoing trading difficulties.

CEO Andrew Reitzer said that difficult conditions are a result of continued deflation which is pushing prices and margins down.

The company revealed its would incur a one-off restructuring charge of 34 million Australian dollars and also book a "largely" non-cash impairment charge of about $75 million-$90 million.

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