Food and liquor wholesaler Metcash has stopped distributing groceries and liquor from its largest distribution centre at Huntingwood in Sydney after a hailstorm on Saturday. A comprehensive assessment of the Huntingwood centre has started. Metcash announced that its ability to service orders and deliveries has been seriously inhibited. “Damage is sufficiently serious that the ability to service orders of dry grocery and liquor in the short term has been impacted,” said the company’s chief executive, Ian Morrice. Although the site was damaged, Mr. Morrice said, “I am very pleased that no staff were injured.” The company’s chief executive also said that it had worked “feverishly” over the weekend to ensure a minimal amount of damage to its customers.
The storm caught many be surprise and many business were not adequately prepared. “We were all surprised by the force of the sudden hailstorm on Saturday night, unfortunately our distribution centre at Huntingwood has sustained significant damage,” said chief executive Morrice. Metcash announced that it had activated its business continuity plans after the storm. Its perishable and fresh warehouse experienced minimal damage and was salvageable. It will continue operations as usual. Dry goods and liquor deliveries will be affected in the short term. “We have alerted our retail customers to the issue and explained that whilst the continuity processes are implemented, there may be delays in delivering product,” Mr. Morrice said. MTS is up 2.5c, or 1.91 per cent, at $1.34 per share near the end of trading hours on Monday. MTS has fallen over 50 per cent in the last 12 months and over 28 per cent so far this year.
Author: Simon Herrmann
Apr 27, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.