The Metcash Limited (ASX: MTS) share price has rallied higher today in what has been a big day of announcements for the company. The Metcash share price was trading 6.6% higher at $2.34 at the time of writing, below a 52-week high of $2.52.
Here are three announcements that could be impacting the Metcash share price today:
- Earnings. Metcash reported its full-year earnings results today. Group sales rose 5.4% to $14.12 billion while its underlying net profit result rose 9% to $194.8 million. Its actual net profit of $171.9 million represented a decline of 20.6% from the previous year.
- CEO Retirement. Metcash announced that Group CEO Ian Morrice is set to retire from his position in 2018, following completion of five years in the role.
- Dividends. Due to the strength of its balance sheet, Metcash's board decided to bring forward the recommencement of paying out dividends and announced a final 4.5 cent per share fully franked dividend. However, it has suspended its dividend reinvestment plan (DRP) until further notice.
It's also worth noting that Morgan Stanley recently indicated its bullishness on Metcash, although it appears to have taken quite a short-term view on the business. Investors should really take a long-term perspective as opposed to relying on speculation.
