Australasian retailer Foodland Associated has reported an 18% rise in annual pre-tax profit to A$225.9m (£88.4m) on sales down by 6% to A$6.03bn for the year to August 1.

The company said it planned to increase capital expenditure from A$180m last year to A$249m.

Group MD Trevor Coates said: “The combination of regional strength, independent supermarket customers and corporate stores is providing Foodland with opportunities to create more wealth for our shareholders.”