New outlets in both the IGA group and the Mitre 10 network have helped fuel business growth for Metcash, which has just reported its year end results.

Reported profit after tax was up 128.9 percent and the operating cashflow up 5.5 percent to $300m despite some retail losses in the Franklins stores.

The conversions of Franklins supermarket outlets to IGA stores had helped boost the NSW footprint for IGA.

The chain of independently owned stores had also benefited from a marketing focus that included an advertising campaign with comedian Anh Do and the rebranding of the Supa IGA outlets.

Outgoing CEO Andrew Reitzer said the business was capable of withstanding difficult economic conditions.

“It is a challenging time for the independent retail sector with consumer confidence low and the self-service supermarket chains locked in a marketing war. Most particularly, as a wholesaler, we have also had to weather the impacts of continuing price deflation.

“The core grocery business has performed reasonably in light of the difficult market conditions.”

The hardware retail business has also “enjoyed solid network growth,” Reitzer said.

Mitre 10 network has seven new joint ventures and 20 new outlets unveiled in the last 12 months.

Incoming CEO Ian Morrice said a strategic planning process will be completed by the end of this year.

“A key priority will be to review the Food & Grocery operations to respond to the ongoing deflationary and competitive market conditions.”