Costcutter owner Bibby Line Group has reported a 27.3% fall in full-year operating profits to £46.4m following record profits the previous year.
Sales grew 8.7% to £1.4bn in the year to 31 December 2012.
Its retail business, which includes Costcutter, reported a 3% increase in sales to £674m during the period, which the company said was “in line with expectations”.
Bibby also has interests in shipping, marine and financial services.
MD Sir Michael Bibby described the year as “a stepping stone to greater things”.
“Although 2012 was a difficult year with reduced profitability, in part due to market conditions and our investment in developing long-term value, the hard work of our businesses is already bearing fruit in 2013,” he said.
“We expect to see improved performance across the group in the current year.”