Among those challenges were the exchange rate, the flow-on impact of the recent drought and booming construction in Christchurch and Auckland which might create further inflationary pressures that could lead to higher interest rates and a downturn in the housing market.
Foodstuffs lifted its profits in the year ended February and Mr Brown said the performances of the banner groups were fundamental to the group's growth.
''There are many reasons why Foodstuffs South Island will continue to trade well in the future.''
Foodstuffs operates under the New World, Pak'n Save, Four Square, Raeward Fresh and Trents brands.
The group reported an operating profit of $278.3 million in the year, up from the $274.6 million in the previous corresponding period.
Sales continued to rise, reaching $2.5 billion in the period, up from $2.4 in the pcp.
Foodstuffs paid out $217.2 million in rebates to its members and reported an after-tax profit of $15.6 million for the year. The group has total assets of $921 million and had a net operating cash flow of $15 million in the period.
Mr Brown said in the annual report the group had achieved a solid financial result in a tough trading year.
Revenue was up, an ''excellent'' result considering the drop in food price inflation, the sluggish start to the year and difficult trading conditions with some stores still closed due to earthquake damage.
Foodstuffs' experience through the last recession, further exacerbated by the Canterbury earthquakes, helped prepare for future challenges.
''It taught us how to trade successfully under often demanding conditions and embedded a passion in our company to continue to look at ways to enhance our performance as we set our sights on upping our competitive advantage in 2013-14,'' he said.
