Grocery and liquor wholesaler Metcash Ltd has reported a 12.4 per cent rise in annual net profit and anticipated up to eight per cent earnings growth in the current fiscal year.

Metcash, said on Tuesday, net profit for the year to April 30 was $227.6 million, up from $202.5 million in the previous corresponding period.

Wholesale sales growth of 4.9 per cent drove the profit increase, the Company said, despite low inflation in core grocery categories and the withdrawal of federal Government stimulus spending.

Metcash declared a 30 per cent franked final dividend of 15 cents per share, taking the total dividend for the year to 26 cents.

The Company said it expected low sales growth in the food and liquor sectors to continue to December this year.

This was due to the impact of the Government stimulus felt in fiscal 2009, low food price inflation and recent interest rate increases.

Metcash provided guidance of six to eight per cent growth in underlying earnings per share (EPS) for fiscal 2011, on 32 cents EPS in the year to April.

"While current trading conditions remain subdued, we are confident of further growth in our earnings per share in the 2011 financial year, subject to economic conditions remaining stable", Chief Executive Andrew Reitzer said in a statement.

Metcash's grocery distribution business, which supplies independent supermarkets including IGA and Foodworks, saw a 4.1 per cent rise in sales in the year compared to the previous corresponding period.

Earnings before interest, tax and appreciation (EBITA) rose by 9.8 per cent on the previous corresponding period to $346.5 million.