US retailer Winn-Dixie has posted a third-quarter profit of US$23.9m as the company continued its recovery from financial turmoil last year.

The company, which operates in south-eastern US states, said today (15 May) that its profits for the three months to 4 April came as identical store sales inched up 1.6%. Net sales reached $1.7bn, against $1.6bn in the third quarter of fiscal 2006.

President and CEO Peter Lynch said the company had made "early progress" in its aim to turnaround the business.

Winn-Dixie spent much of 2006 under Chapter 11 bankruptcy but emerged from the protection last November.