Grocery wholesaler Metcash has blamed tough market conditions for an 17.9 per cent slump in full year profit.
The owner of the IGA supermarket brand reported full year net profit of $169.2 million for the 12 months to April 30.
It said 1.4 per cent deflation in grocery prices and excessive fuel discounting by supermarket giants Coles and Woolworths were contributing to a tough trading environment.
Sales revenue rose 3.2 per cent to $13.4 billion.
However, underlying profit after tax fell 10.9 per cent to $250.1 million.
That excludes significant items after tax related to a strategic review and impairment and acquisition costs.
The final dividend of 9.0 cents a share, fully-franked, is down from last year's 16.5 cents.
Metcash's food and grocery segment was impacted by the closure of 25 Franklins stores.
Sales and profits in food and grocery fell, but that was partially offset by growth in its liquor and hardware and automotive segments and incremental growth through acquisitions.
Chief executive Ian Morrice said it had been a challenging year but it had been an important transition period as it undertook a strategic review and $480 million transformation plan to address structural challenges.
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