Grocery and liquor wholesaler Metcash Ltd
(ASX:MTS) has reported a 12.4% rise in profit for the year and says it is confident of growing earnings in fiscal 2011.
Net profit after tax for the 12 months to April 30 rose to $227.6 million compared to $202.5 million the year before, on a 4.9% increase in wholesale sales to $11.51 billion.
The company says it achieved this increase in sales despite persistent low inflation in core grocery categories and the receding effects of the government stimulus package, which boosted sales in 2009.
Metcash declared a final dividend of 15 cents a share up on the 14 cents a share paid last year.
The company says IAG retailers, who it services, retained their market share of 19.9% for the most recent quarter despite subdued market conditions and competition from the national chains.
Metcash says that while current conditions remain subdued, it is confident of further growth in earnings per share in the 2011 fiscal year, subject to economic conditions remaining stable.
Metcash paid a total of 24 cents a share in dividends to shareholders in its fiscal 09 year.
