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IGA Supermarkets owner and distributor Metcash has reported record annual sales and will buy back shares.
The sales momentum for the 2021 fiscal year ended April has continued into the first eight weeks of the new year, as consumers continued to spend up on food, liquor and hardware.
"It has been a standout year for Metcash," chief executive Jeff Adams said in a statement on Monday.
"The group has continued to benefit from a shift in consumer behaviour in the first eight weeks."
However, Metcash cautioned there was still some uncertainty over the potential impact of any future COVID-related trading restrictions.
Metcash, which also owns Mitre 10, reported a bottom-line net profit of $239 million for fiscal 2021.
Underlying net profit was $252.7 million, up about 27 per cent, on a revenue jump of almost 10 per cent to a record $14.3 billion.
Shareholders will receive a final full franked dividend of 9.5 cents per share. This is higher than the previous final dividend of 0.065 cents per share.
Meanwhile the company will buy-back shares off-market up to the value of $175 million.
Board members said the buy-back was the most tax effective way to return excess capital to shareholders.
Metcash said shareholders who did not choose to participate would still benefit through greater earnings per share.
Investors have until Wednesday to buy shares and be eligible.
Metcash also increased its stake in retailer Total Tools from 70 per cent to 85 per cent.
Metcash paid $59.4 million to own a bigger share of the 90-store network.
Shares in the company were lower by 0.27 per cent to $3.65 at 1134 AEST.