Kalkine : Metcash (ASX:MTS) Share Climbs After Strategic Update and FY25 Guidance in ASX 200

Highlights

• Metcash (ASX:MTS) consolidates its hardware businesses into a new single entity

• CEO transition announced as part of organisational restructuring

• FY25 group earnings guidance released across all divisions

Metcash Ltd (ASX:MTS), a wholesale distributor within the S&P/ASX 200 index, has announced a major strategic initiative focused on reshaping its hardware operations. Operating in the consumer staples sector, the company services independent retailers across food, liquor, and hardware segments in Australia.

The latest update reveals that Metcash will merge its Independent Hardware Group and Total Tools businesses into a single operating division. The newly formed entity, named Total Tools and Hardware Group, aims to create a unified and scalable hardware business that caters to both trade professionals and do-it-yourself consumers. This integration is designed to streamline internal processes, enhance service delivery, and support a more coordinated approach to growth across the hardware sector.

The new structure will house some of Australia’s most recognised hardware brands, including Mitre 10, Home Hardware, and Total Tools. It is expected to improve operational alignment and build a foundation for future expansion. According to company statements, this combination enables more effective resource allocation, brand cohesion, and simplified management practices.

Leadership reshuffle as part of transformation

As part of this realignment, leadership changes have also been confirmed. The current CEO of Independent Hardware Group will lead the new Total Tools and Hardware Group. Meanwhile, the CEO of Total Tools will be stepping down following the integration.

This shift in leadership aligns with a long-term organisational vision that has been under since the acquisition of Total Tools. Metcash notes that the move supports its focus on driving profitability, strengthening franchise relationships, and building resilience in an evolving market. The leadership transition is positioned as a key enabler in delivering a more synchronised and efficient hardware operation across the national footprint.

The announcement also highlights that the restructured hardware segment is set to operate with increased agility and a clearer value proposition for retail partners. The integration is seen as a continuation of efforts to align business functions and improve market responsiveness.

FY25 guidance details group-wide

In addition to operational updates, Metcash has issued earnings guidance for the financial year ahead. The company has provided a detailed breakdown of expected earnings before interest and tax (EBIT) across its key business segments, including food, liquor, and hardware. The hardware division is anticipated to deliver stable performance following the restructure.

The food segment continues to support independent grocers with wholesale distribution solutions and has shown consistent performance. The liquor division, supplying retail banners and hospitality venues, is also expected to contribute solidly to overall results. Corporate expenses remain outlined within the usual range.

Metcash has indicated that its projected underlying profit after tax for the full year is slightly ahead of expectations. This guidance takes into account steady demand across all operating divisions and the expected benefits from the hardware consolidation. It also reflects disciplined cost control and continued efficiency improvements.

Strategic direction in response to market conditions

The decision to restructure the hardware segment reflects Metcash’s approach to managing challenges in the retail and distribution landscape. By creating a more integrated business model, the company aims to reinforce its market positioning and support long-term performance across all retail channels.

The unified hardware operation is positioned to drive stronger outcomes by utilising scale advantages and offering a more compelling service proposition to trade and home improvement customers. This move is also expected to foster stronger engagement with franchisees and support innovation across product and service offerings.