Speaking at the company's AGM today (31 August) Metcash CEO Andrew Reitzer told shareholders that sales in the first quarter had met expectations.

The Australian grocery and liquor wholesaler said sales had increased by 10% to A$7.7bn (US$5.88bn) while net profits after tax rose 23.8% to A$127.9m and EPS increased 34.7% to 21.55 cents a share.

Reitzer said that the group expected its Foodland acquisition to generate EBIT this year of between A$80m and A$90m before restructuring costs.

The group reiterated last month's forecast that earnings per share for the financial year ending 30 April 2007 will total 22.5-25 cents.