Source: The West Australian

Grocery wholesaler Metcash has posted a 6 per cent rise in annual net profit, but says it faces challenging conditions for the rest of the calendar year.

Metcash reported an annual net profit of $241.4 million for its fiscal 2010/11 year, up 6.06 per cent on the prior year.

Metcash, which distributes groceries through the IGA supermarket network, says it expects challenging conditions to continue through 2011.

"The industry continues to experience product deflation, underlying cost inflation and a value-driven consumer,” the company said.

Shares in Metcash closed up two cents at $3.90.

Metcash said it would provide no further guidance until its half year results for fiscal 2011/12, in six months, when it expected the outcome of a court case in relation to its attempt to take over Franklins supermarkets.

Metcash chief executive officer Andrew Reitzer described the result as “creditable” given the challenging trading conditions experienced by the sector over the past year.

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