Metcash Limited (ASX:MTS) Details FY26 Results and Queensland Supermarket Acquisition

Aditi Sarkar

22 October 2026 10:12 PM AEDT

Metcash Limited (ASX:MTS) Details FY26 Results and Queensland Supermarket Acquisition

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Highlights

Metcash (ASX:MTS) reported FY26 group revenue of AUD 19.6 billion, up 0.7%.
Group EBITDA increased 1.9% to AUD 761.7 million; operating cash flow reached AUD 558 million.
Metcash agreed in October to acquire the Peries Group, which operates 15 Queensland IGA supermarkets.
The estimated transaction price is AUD 80–85 million, with completion subject to conditions and regulatory approval.

Metcash Limited supplies independent grocery, liquor, hardware and tools retailers through its Australian wholesale, distribution and support operations. The company has recently reported its FY26 financial results and announced an agreement to acquire the Queensland-based Peries Group. On 22 October 2026, Metcash Limited (ASX:MTS) closed at AUD 3.18. The latest developments place its food network, cash generation and acquisition commitments in focus.

Company Business

Metcash (ASX:MTS) operates across Food, Liquor and Hardware & Tools. Its activities include purchasing, warehousing, distribution, marketing, merchandising and services for independent retailers. The group supplies IGA supermarkets and other grocery operators, independent liquor retailers and hardware outlets associated with brands including Mitre 10 and Total Tools.

The operating model connects national supply arrangements with locally managed retail businesses. Metcash also participates directly in selected retail and foodservice activities. Its distribution infrastructure and relationships with independent operators create exposure to consumer expenditure, hospitality demand, construction activity and trade spending across Australia.

Recent Development

In October 2026, Metcash (ASX:MTS) exercised a contractual right and entered a binding agreement to acquire the Peries Group. The business operates 15 medium- and large-format IGA supermarkets across Queensland, including regional markets. The supermarkets recorded approximately AUD 264 million in retail sales in their FY26 period to 30 June 2026, which Metcash identified as unaudited. Its existing wholesale sales to the group were approximately AUD 150 million.

The estimated purchase price is AUD 80–85 million, excluding stock, employee entitlements and stamp duty, and Metcash intends to fund it through debt facilities. Completion is anticipated in late April or early May 2027, subject to conditions including lease assignments and Australian Competition and Consumer Commission approval. The company may assess divestments or joint ventures with independent operators after acquiring the stores.

At its September 2026 annual general meeting, the company also outlined ongoing investment in digital systems, its business-to-business marketplace and operational integration across its retail networks.

Financial Performance and Sector Context

For the year ended 30 April 2026, Metcash (ASX:MTS) reported group revenue of AUD 19.6 billion, an increase of 0.7%, or 3.8% excluding tobacco. EBITDA rose 1.9% to AUD 761.7 million. Underlying EBIT declined 0.8% to AUD 503.7 million, although the company reported a 1.6% increase excluding one-off integration and strategy costs.

Underlying profit after tax was AUD 268.8 million, while underlying earnings per share were 24.5 cents. Operating cash flow increased 3.5% to AUD 558 million, and the three-year average cash realisation ratio was approximately 104%. The debt leverage ratio was 1.0 times. FY26 distributions totalled 18 cents per share, fully franked.

Food EBIT rose 5.4% in FY26, while food sales excluding tobacco increased 5.4%. Liquor revenue increased 1.0%, although segment EBIT declined. Hardware & Tools revenue increased 4.3%, with softer trade demand affecting parts of the hardware business. The broader operating environment includes tobacco-volume declines, pressure on household spending and changes in trade activity.

Risks to Consider

The proposed Peries acquisition carries completion, regulatory and financing considerations. Additional debt funding may change leverage, while future ownership arrangements for the supermarkets remain undecided. Across existing operations, cost inflation, declining tobacco sales, variations in consumer demand and hardware trade volumes affect earnings. Integration spending and execution of systems projects also require monitoring.

What to Watch Next

Metcash (ASX:MTS) has scheduled its H1FY27 financial results for 7 December 2026, when further Peries transaction details are expected. Subsequent disclosures may clarify funding, regulatory progress and planned store ownership arrangements. Other points to monitor include comparable sales excluding tobacco, margin development in Food and Liquor, demand in Hardware & Tools, cash conversion and group debt leverage.

Key Insights

Metcash (ASX:MTS) ended FY26 with modest revenue growth, higher EBITDA and increased operating cash flow, alongside a slight decline in underlying EBIT. Its proposed Queensland supermarket acquisition would deepen involvement in the IGA network but remains conditional. The next reporting period will provide further evidence on business-segment trading, costs, cash flow and transaction progress.

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