Metcash Announces Board Changes Following FY16 Results

Following the announcement of Metcash Limited’s FY16 results on Monday, the company released the names of those who will be leaving and joining its Board at the Annual General Meeting (AGM) on August 31.

Chairman Rob Murray told the market that he does not intend to stand for re-election and that Non-Executive Directors Neil Hamilton and Michael Butler will retire from the Board.

Non-Executive Director Patrick Allaway will become the new Chairman of the Audit, Risk and Compliance Committee following Mr. Butler’s retirement, while the recent appointments of Helen Nash and Murray Jordan as Non-Executive Directors will hold Board numbers for the year ahead.

The results on Monday presented a huge success for Metcash, with post tax profits of $216.5m - a major improvement on the $384.2m loss in FY15.

Group CEO Ian Morrice attributed the success to the Group’s ‘Transformation Plan’, which has delivered returns for Metcash’s Liquor and Hardware businesses.

In the company’s Liquor business, which represents Cellarbrations, IGA Liquor, Bottle-O and Bottle-O Neighbourhood, total sales increased by 3.7 per cent to $3.2bn, “a result of the strong performance of the IBA network and the continued conversion of customers to our banner group,” the company said. “Sales through the IBA bannered network increased 13.0 per cent on the prior year. EBIT increased by 7.8 per cent to $62.1m (FY15: $57.6m) reflecting conversion of stores to the IBA bannered network and a strong focus on cost control.”

Metcash expects further consolidation and positive momentum in the Liquor business. Morrice said that the Group is focused on supporting its independent retailers, while the company is continuing to invest in its liquor network, with approximately 85 stores newly refreshed and 220 coolrooms upgraded.

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