Posts Tagged ‘Metcash’

ASX Company News: Metcash Expands Supply To Mobil Quix Stores

Friday, February 4th, 2011

Australia’s leading independent grocery and liquor wholesale distributor and marketer, Metcash  Limited (MTS), announced a major expansion of its Campbells C-Store Distribution business, with the addition of about 230 Mobil Quix and other convenience/petrol outlets to its client base over the next 12 to 15 months.

The new arrangements, expected to generate an extra $140 million in annualised sales revenue, follow the acquisition of Mobil by 7-Eleven Australia, whose 400 convenience stores across Australia are already supplied by C-Store Distribution. Campbells and 7-Eleven have formed a joint operational team to ensure the effective conversion of Mobil corporate stores into the very successful 7-Eleven system and the new supply arrangements. The Mobil commission agent sites will come on to the new arrangements as they convert to the 7-Eleven brand across the balance of 2011. C-Store Distribution will supply grocery, tobacco, soft drinks, confectionery and oil lubricants to the strongly performing chain of outlets across capital cities and major regional centres.

Chief Executive Officer of Campbells Wholesale, Peter Dubbelman, said “We are delighted that the independents have gained the opportunity to grow their share of the convenience sector under the proven and very successful 7-Eleven franchise model. “C-Store Distribution is effectively a Total Supply Solution for 7-Eleven, which has enjoyed strong efficiency gains over the last four years”, he added. Chief Executive Officer of 7-Eleven, Mr Warren Wilmot, said “We will use Metcash’s distribution systems to improve the support of Mobil stores through improved pricing, more efficient deliveries, better fulfilment rates, as well significantly reducing delivery and administrative costs. “We have developed a strong working relationship with the Campbells team and look forward to delivering a great service to the Mobil stores”, he concluded.

www.metcash.com

http://www.traderdealer.com.au/Fundamentals/mts

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ASX Company News: Metcash Acquires Franklins Supermarkets

Friday, July 2nd, 2010

Australia’s largest independent grocery and liquor wholesaler, Metcash Trading Limited, announced it will acquire the Franklins chain of 85 supermarkets, comprising 77 corporate stores plus supply to 8 franchised stores. Metcash has today entered into an agreement with Pick n Pay Retailers (Pty) Limited of South Africa to acquire the shares of Interfrank Group Holdings Pty Ltd, the company which owns the Franklins business, from Pick n Pay for a consideration of approximately $215 million, to be paid on completion – expected by 30 September, 2010. In keeping with its core value of championing its independent retailer customers, Metcash proposes to implement a store sale program upon completion to sell the stores to independent IGA retailers. Metcash will operate the stores in the intervening period whilst the store sale program is completed, which could take several months.

Metcash Chief Executive, Mr Andrew Reitzer, said “The IGA network will significantly improve its competitive position against the national chains in Australia’s largest grocery market, NSW, while growing the market share of Metcash supplied retailers in the state from 11 per cent to 17 per cent. “Metcash expects the independent retailers who purchase the stores will lift each store’s performance through the successful combination of their own retailing expertise and through utilising the strength, services and support provided by Metcash; especially our national buying power, world class supply chain and marketing and merchandising programs. These stores will be able to take advantage of our favourable arrangements with suppliers to achieve more competitive pricing deals. Consumers and independent retailers in NSW are big winners from this deal,” he added.

The acquisition is expected to add more than $500 million per annum of wholesale sales to Metcash’s business. The uplift in the first full year after selling the stores is expected to be between 1.5 cents and 2.0 cents per share. The transaction is subject to, among other things, ACCC approval and will be funded from existing Metcash bank facilities.

www.metcash.com

http://www.traderdealer.com.au/Fundamentals/mts

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Metcash Ex Dividend On 18/6/2010

Tuesday, June 8th, 2010

Metcash Limited (MTS) will go ex dividend on 18/6/2010. The current dividend payment is 15 cents and it is 100% franked. The record date is 24/6/2010 and the dividend will be paid on 7/7/2010. Based on the full year payment the dividend yield is 6.3%.

*Current Yield: 3.6% Franking: 100% DRP Discount: Not Available

www.metcash.com/

*Yield has been calculated on the closing price on the 4/6/2010. Current yield is based on the current dividend payment only.

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Metcash to buy 50% stake in Mitre 10

Thursday, December 10th, 2009

Metcash will pay $55 million for a 50.1% stake in Mitre 10, and in its own words, “become a champion of the independent hardware retailer”.

Metcash, a grocery wholesaler, will have the right to acquire the remaining 49.9% of equity in 2012 or 2013, when audited accounts have been finalised.

Mitre 10 has given the transaction its full support, but shareholders of Mitre 10 Limited and Mitre 10 Australia Limited must also give their approval.

Metcash Limited
ASX Code: MTS

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Metcash Finalises Supply Agreement With Foodworks

Friday, September 4th, 2009

Australia’s largest independent grocery wholesaler and distributor, Metcash Ltd (MTS), today announced that it has reached agreement for the supply of grocery and liquor products to the 45 supermarkets (and 8 aligned liquor stores) that Foodworks will acquire from Coles. It is anticipated that the first store will transition to supply from Metcash in the next month with the last transferring by the end of April 2010. The supply agreement will be for an initial period of 10 years and will incorporate supply of the fresh categories. At the wholesale level it is expected that the new Foodworks stores will add an additional $250 million of sales to Metcash in the first full year of operation. Metcash will also continue to provide its high level of service to the more than 700 Foodworks-aligned customers under the terms of its existing contracted supply arrangements which have been extended until 2019.

Chief Executive of Metcash, Mr Andrew Reitzer, said “We are delighted to have reached agreement with Foodworks and look forward to a mutually prosperous expansion of our relationship. The Foodworks’ brand is well recognised in the market place and espouses common themes to those championed by Metcash; namely, tailoring independent stores to suit their local customer base and the communities in which they operate. While the volume is obviously crucial to supporting Metcash’s negotiating power on behalf of all its independent retail customers, having such an important customer as Foodworks aligned to achieve similar goals in servicing consumers’ needs is critical”, he added.

Metcash’s grocery distribution business IGA>D has helped the Foodworks’ stores increase their sales from $450 million to $1.75 billion over the last seven years. This growth has been achieved through Metcash providing: Access to Metcash’s Black & Gold generic products, as well as Metcash’s newly introduced and fast growing Fresh range of products; Use of its national network of wholesale distribution outlets, facilitating the expansion of Foodworks to a National Retail Chain; Competitive wholesale prices; Access to Metcash’s sophisticated IT systems; and Attractive trading terms that can not be matched by any other wholesaler.

www.metcash.com

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IGA and Metcash Profit Sharing Agreement

Friday, July 17th, 2009

The IGA National Council, representing more than 1,270 independent IGA retailers has signed a landmark deal with their principal supplier and owner of the IGA brand, Metcash Ltd (MTS), to share the proceeds of growth and major expansion projects. On top of their established base trading terms with Metcash, IGA supermarkets will share equally with Metcash the $10-20 million worth of expected annual improvements in profits to be generated through the expansion of the IGA chain, refurbishments of stores, brand compliance and improvements in stores’ “teamwork” and performance over the next three years.

National Board Chairman of IGA, Mr Mick Daly, said “This is a historic deal for independent supermarkets in Australia, where we will share the proceeds of IGA’s continued expansion across Australia with our supplier for the first time. We are delighted that Metcash has confirmed its position as the champion of the independent retailer by striking this historic agreement with IGA, whose network we continue to expand despite competition from the national chains”, he added.

The agreement is one of the outcomes of the two year, multi-million dollar project Lion, which involved extensive work by IGA and Metcash to identify and generate greater operational efficiencies, technology upgrades, brand compliance and store standards, as well as the creation of growth targets. Project Lion has identified that IGA will develop more than 225 new stores by 2012, with 43 opened last financial year and a further 60 new openings expected in 2009-2010.

http://www.metcash.com/

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Profits up for grocery merchant

Monday, June 1st, 2009

Grocery and liquor retailer Metcash has reported a 2.55% growth in annual profit and a 8.51% lift in revenue.

The core grocery market seems to be remaining strong in the adverse financial environment, as consumers eat at home more often.

Metcash, which runs the IGA Distribution business, believes its profits can also be traced back to customer support for independent retailers.

Standout performers for Metcash have been beer sales, through the Australian Liquor Marketers division, and food service, soft drinks and confectionery.

Operational costs have also been streamlined through improvements to the supply chain and technology innovations.

ASX Code: MTS
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For more details on this news story, read this article in today’s Sydney Morning Herald.

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