Metcash (MTS) H1 2026 earnings summary

Executive summary

• Delivered solid results in 1H26, maintaining momentum across core businesses despite challenging market conditions and accelerated tobacco decline.

• Disciplined execution, diversification, and integration of acquisitions supported resilience, with strong cash generation and positive EBITDA leverage.

• Food pillar showed resilience and earnings growth despite a sharp decline in tobacco sales.

• Liquor outperformed the market, gaining share; Hardware & Tools showed early signs of market improvement.

• Outstanding operating cashflow and continued progress in ESG and digital platform initiatives.

Financial highlights

• Group revenue reached $9.6bn, up 0.4% year-over-year (+4.5% ex-tobacco); reported revenue $8.5bn, nearly flat year-over-year.

• Group EBITDA rose 2.0% to $367.2m (+4.3% ex one-off costs); EBIT was $240.2m, down 2.4% (+1.0% ex one-off costs).

• Underlying profit after tax was $126.7m, down 5.9% year-over-year; reported profit after tax up 0.3% to $142.2m.

• Operating cash flow increased 60% to $262m; 3-year rolling cash realisation ratio at 105.9%.

• Interim dividend of 8.5cps declared, fully franked, ~74% of UPAT.

Outlook and guidance

• Growth momentum (ex-tobacco) continued into 2H26, with positive trends in Supermarkets and Total Tools.

• Planning for sustained sales momentum, leveraging business diversity and disciplined strategy execution.

• Tobacco sales expected to remain under pressure due to regulatory changes; mitigation includes new supply contracts.

• Program Horizon, a major technology upgrade, is progressing and expected to complete in FY27.