Metcash shares have stumbled after the wholesaler lifted first-half profit three per cent to $95.8 million but flagged more tough times for supermarkets and the likely impact on its hardware business of a slowing property market.
The IGA and Foodland supermarket supplier's sales revenue for the six months to October 31 rose 2.2 per cent to $6.19 billion, with chief executive Jeff Adams crediting the rise to its food division and hardware business.
Metcash will lose a major chunk of its South Australian business when Drakes Supermarkets' contract expires at the end of the current financial year, but the company reiterated that it has "long-term" supply agreements in place with the majority of its Foodland retailers in the state.
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