Metcash (MTS) H2 2025 earnings summary

Executive summary

• Achieved strong profit and revenue growth in FY25, with disciplined execution and strategic focus across all business pillars despite challenging market conditions.

• Food division expanded and diversified, aided by the Superior Foods acquisition, while Liquor gained market share and Hardware improved in the second half with positive momentum into FY26.

• Integration of Superior Foods and other acquisitions progressing well, with synergy benefits on track.

• Strategic focus on supporting independent retailers, expanding revenue streams, and leveraging logistics and technology platforms for future growth.

• Balance sheet remains flexible, supporting ongoing investment and shareholder returns.

Financial highlights

• Group revenue increased 8.9% to $17.3bn (7.2% to $19.5bn including charge-through); statutory sales revenue $17.3bn, up 8.9%.

• Underlying EBIT rose 2.3% to $507.8m; statutory profit after tax increased 10.1% to $283.3m, including a $15m gain from reversal of a previously impaired loan.

• Operating cash flow increased 11.7% to $539m; three-year rolling cash realisation ratio at 94.7%.

• Underlying EPS at 25.1 cps; total dividend 18.0 cps, payout ratio of 72% of underlying NPAT.

• Net debt closed at $577.4m, with undrawn debt facilities of $889m and debt leverage ratio at 0.96x.

Outlook and guidance

• Positive start to FY26 with group revenue up 4.7% in the first seven weeks, growth in all pillars; Food revenue up significantly, driven by Superior Foods and Campbells & Convenience.

• Hardware sales momentum and improved trade activity expected to continue; Liquor market share gains sustained, with further acquisitions planned.

• CapEx guidance for FY2026 reduced to $200m, reflecting disciplined capital allocation and timing shifts.

• Net finance cost for FY2026 expected between $120–125m.

• Cash realisation ratio guidance lifted to 80%-90% from 75%-85%.