AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Metcash (MTS) reports 8.9% revenue growth to $17.3 billion
- Food division sees double-digit gains amid strategic acquisition
- Positive FY26 momentum observed across all segments
Shares of Metcash Ltd (ASX:MTS), an ASX200 constituent, jumped over 4% following the release of its financial results for the 12 months ending 30 April 2025. The diversified wholesaler, known for supplying IGA supermarkets, independent liquor outlets, and hardware chains like Total Tools and Mitre 10, posted a mixed but encouraging performance.
FY25 Highlights Reflect Steady Operational Strength
Metcash reported group revenue growth of 8.9%, reaching $17.3 billion, showcasing resilience across its multi-division business model. Underlying EBIT grew modestly by 2.3% to $507.8 million, while the statutory net profit after tax surged 10.1% to $283.3 million. However, the underlying NPAT dipped slightly by 2.4% to $275.5 million, influenced by higher finance costs and depreciation.
\The company declared a final dividend of $0.095 per share, taking the total annual dividend to $0.18 per share. Strong operational cash flow growth of 11.7%, totaling $539 million, further reinforced Metcash’s robust financial standing.
Food Segment Delivers, Hardware and Liquor Mixed
The food division emerged as the standout performer, with revenue climbing 11% and earnings up 18%, aided by organic growth and the integration of Superior Foods.
The liquor segment demonstrated solid retail momentum, especially in the latter half, with independent stores outperforming broader market trends. Nonetheless, EBIT in this segment fell by $5.1 million to $104.1 million, due to lower wholesale price inflation despite strong trading.
In hardware, trade activity remained subdued for much of the year. Sales inched up 2.4%, but EBIT declined 10.2% as acquisition-related depreciation weighed on results. Encouragingly, Q4 saw early signs of a trade recovery, a trend that has extended into FY26.
Promising FY26 Start and Strategic Expansion
Metcash has entered FY26 with positive momentum. Group revenue for the first seven weeks rose by 4.7%, with all three segments contributing to the gain. Food division sales jumped 17%, supported by continued growth in Campbells & Convenience and the contribution of Superior Foods.
Liquor sales saw a 1.5% uplift, bolstered by consumer preference for quality and convenience in independent offerings. The company also announced a binding agreement to acquire the Steve’s Liquor Warehouse group, expanding its retail footprint in Victoria and Tasmania.
Hardware sales improved 1.1%, with rising trade sales in timber and building supplies. Total Tools retail margins continued their second-half FY25 recovery into FY26.
As part of the ASX200 index, Metcash remains a notable player to watch for its diversified exposure, disciplined expansion, and operational adaptability amid changing market dynamics.
