Metcash Limited (ASX:MTS): FY26 Results, Trading Update and Horizon Program Timeline

Aditi Sarkar

23 October 2026 12:29 AM AEDT

Metcash Limited (ASX:MTS): FY26 Results, Trading Update and Horizon Program Timeline

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Highlights

Metcash (ASX:MTS) reported FY26 group revenue of A$19.6 billion, up 0.7%, and EBITDA of A$761.7 million, up 1.9%.
Underlying profit after tax was A$268.8 million, while total dividends of 18.0 cents per share were fully franked.
Food pillar EBIT rose 5.4% to A$261.8 million, while Liquor and Hardware & Tools EBIT declined.
First-18-week FY27 sales excluding tobacco were up 2.8%, with the Horizon technology program due to reach its first release in late 2026.

Metcash Limited is a wholesaler and service provider to independent businesses, supplying food, liquor and hardware retailers across Australia. The company released FY26 results and an early FY27 trading update. On 19 October 2026, it announced that it had exercised its right to acquire Peries Group.

Company Business

Metcash operates through three pillars. Food supplies more than 1,000 independent supermarkets, including IGA and Foodland stores, and supports the petrol and convenience sector through its Campbells and Superior Foods operations. Liquor serves banners such as Cellarbrations, The Bottle-O and Porters Liquor, alongside on-premise customers. Hardware & Tools covers Total Tools and the Independent Hardware Group, which supports Mitre 10 and Home Hardware.

The group serves about 105,000 customers and around 6,300 bannered stores through 62 distribution centres. For Metcash (ASX:MTS), the Sorted business-to-business marketplace generated about A$5.9 billion of FY26 sales, roughly 30% of group revenue.

Recent Development

Metcash released its FY26 results in June 2026 for the year ended 30 April 2026. Its annual general meeting followed in September.

Alongside the meeting, the company issued a trading update covering the first 18 weeks of FY27. Group sales excluding tobacco rose 2.8%, or 3.5% including tobacco. Food sales excluding tobacco increased 2.6%, Liquor sales rose 0.8% and Hardware & Tools sales increased 6.0%, with Total Tools up 9.8%. Metcash (ASX:MTS) also advised that it is winding down its New Zealand wholesale liquor business, with a full exit expected early in the second half of FY27 and an earnings impact of about A$2 million, excluding redundancies.

Financial Performance and Sector Context

FY26 group revenue including charge-through sales was A$19.6 billion, up 0.7%, while statutory sales revenue was A$17.354 billion, up 0.2%. EBITDA increased 1.9% to A$761.7 million. EBIT was A$503.7 million, down 0.8%, or up 1.6% when A$12.4 million of one-off strategy and integration costs are excluded. Underlying profit after tax was A$268.8 million, down 2.4%, and reported profit after tax was A$279.1 million, down 1.5%.

Operating cash flow was A$558.0 million, a cash realisation ratio of 105.9%. Net debt was A$616.6 million, giving leverage of 1.0 times against a target range of 1.0 to 1.75 times. The final dividend was 9.5 cents per share, fully franked and paid in August 2026, bringing the full-year dividend to 18.0 cents.

By pillar, Food EBIT rose 5.4% to A$261.8 million. Liquor EBIT was A$100.1 million compared with A$104.1 million, although market share increased to 32.3%. Hardware & Tools EBIT was A$177.3 million compared with A$189.3 million, with softer hardware trade in Victoria and Tasmania offset in part by 3.7% earnings growth at Total Tools.

Sector conditions remain mixed. Management cited consumer caution in May 2026 and an improvement in June. In its September update, the company expected first-half earnings to be affected by an adverse Superior Foods sales mix, a net impact of about A$10 million from the end of the accelerated tobacco excise increase and cost inflation.

Risks to Consider

Metcash (ASX:MTS) faces exposure to household spending patterns, wholesale price inflation, competition from major supermarket and liquor chains and softness in regional hardware trade. Program Horizon, the technology replacement program, has cumulative costs of A$286.7 million, and its second release has been delayed to the first quarter of calendar 2027 to manage peak-trading risk. The company also discloses a contingent liability relating to the Ritchies Stores put option, with estimated consideration of A$240 million to A$250 million.

What to Watch Next

Horizon Release 1, covering the National Support Office, WA Food, Liquor and Campbells, is scheduled for the fourth quarter of calendar 2026, with Release 2 for the rest of the business in the first quarter of calendar 2027. FY27 Horizon capital expenditure is estimated at A$18 million to A$20 million, with significant items of A$22 million to A$24 million before tax. The first half of FY27 ends on 31 October 2026, after which half-year results will follow. The New Zealand liquor exit is a further milestone.

Key Insights

Metcash (ASX:MTS) closed FY26 with modest revenue growth, higher EBITDA, a fully franked 18.0 cent dividend and leverage at the low end of its target range. Food earnings improved, while Liquor and Hardware & Tools earnings were lower. Early FY27 trading shows sales growth across all three pillars, alongside an expectation of challenging conditions. Items to monitor include Horizon delivery, tobacco and Superior Foods mix effects, retail margins and the progress of independent retail acquisitions.

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