Shares to Buy Metcash (MTS)

Shares to Buy – Metcash (MTS)   1 June 2010

Metcash (MTS) is a leading and marketing distribution company, which has operations in the food and consumer goods industry.

MTS reported its FY10 results today.  Net profit rose 12.4% to $227.6 million and a final dividend of 15 cents was declared.

The result was largely attributable to a 5% increase in wholesale sales, which was commendable given that MTS, like its competitors, is facing low food inflation and the cycling of government stimulus.

MTS forecast 6% to 8% growth in FY11 EPS, with the figure to be impacted by expectations of low sales growth, low food price inflation, and further interest rate rises.

Australian share price for MTS closed 2.3% higher, settling at $3.94.