Australian wholesaler Metcash has warned that earnings growth will slow this year due to food and fuel inflation.
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The company, which is the country’s third-largest retailer behind Woolworths and Coles, gave the warning after posting rising annual profits.
Net profit reached A$197.4m (US$187.9m), with earnings per share rising 16.1% to 26.64 cents.
Metcash said the results reflected the strength of all of its divisions, despite a tougher trading environment and strong competition from Woolworths and Coles.
During the period, Metcash’s share of the Australian grocery market grew from 18.6% to 19.2%.
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By GlobalDataHowever, delivering the results chief executive Andrew Reitzer warned that higher fuel prices and inflationary pressures on food were combining to create an unstable market.
“However, we expect earnings per share to continue their growth… We have built up good momentum and expect further profit growth in the new financial year,” he said.
