Metcash (MTS) H2 2026 earnings summary

Executive summary

• Delivered resilient FY26 results, leveraging a diversified portfolio and disciplined execution across Food, Liquor, and Hardware & Tools, supplying independent and non-chain businesses and supporting ~105,000 customers and ~6,300 bannered stores.

• Maintained strong cash performance and balance sheet flexibility, with effective cost and working capital management.

• Continued investment in technology, digital platforms, and retail media to drive growth, scalability, and operational efficiency.

• Expanded retail ownership and B2B marketplace, further diversifying earnings base and targeting 25%-30% of IGA network revenue over 5-6 years.

• Recent acquisitions, disciplined capital management, and completion of key mergers underpin growth and shareholder returns.

Financial highlights

• FY26 revenue was AUD 19.6 billion, up 0.7% year-over-year and 3.8% excluding tobacco.

• EBITDA before strategy and integration costs rose 3.5% to AUD 774 million; reported EBITDA up 1.9% to AUD 761.7 million.

• Operating cash flow increased 3.5% to AUD 558 million; three-year cash realization ratio at 104%.

• Final dividend of AUD 0.095 per share, total annual dividend AUD 0.18 per share (74% payout ratio), fully franked; DRP suspended.

• Net debt at AUD 616.6 million; leverage at 1x, at the lower end of the target range; ROFE at 20%.

Outlook and guidance

• FY27 started with steady group sales; Food and Liquor trading in line with FY26 growth, Hardware & Tools showing strong momentum, especially in Tools.

• FY27 CapEx expected at approximately AUD 150 million, excluding acquisitions.

• Cost out program on track, targeting AUD 25 million annualised savings in FY27.

• Depreciation and amortization to increase by low double digits; net finance costs expected between AUD 130 million and AUD 135 million in FY27.

• Market conditions expected to remain challenging, with digital and AI-enabled capabilities to drive future growth.