Australia’s largest grocery retailer Woolworths booked a 10.1% increase in net profit for the 2010 financial year to reach A$2.02bn (US$1.79bn).

The retailer also announced a A$700m off-market share buy-back scheme, more than double the amount purchased earlier this year.

The company posted a 4.8% sales increase (excluding petrol) to reach A$51.69bn, while EBTDA increased 9.4%.

The company announced that despite the strong results, it sees opportunities to improve its core business over the medium term. It revealed its plans to further enhance its supply chain, increase its private-label offer, reduce costs and price reductions, which will be funded by operational and buying improvements.

“We are focused on sustainable long term profitable growth that delivers enhanced value to customers and shareholders through all economic cycles,” said CEO and managing director Michael Luscombe.

Click here for the full year statement from Woolworths.