Highlights

  • Metcash reports Group revenue of AUD 8.5bn, including charge-through growth to AUD 9.6bn.
  • Operating cashflow increased 60% to AUD 262.3m, supporting balance sheet flexibility.
  • Digital marketplace “Sorted” now accounts for ~AUD 4bn annualised sales, expanding B2B reach.

Metcash Limited (ASX:MTS) released results for the half year ended 31 October 2025. Group revenue increased 0.1% to AUD 8.5bn, or 0.4% to AUD 9.6bn including charge-through, with growth in Food (excluding tobacco), Liquor, and Hardware pillars. Group EBITDA increased 2.0% to AUD 367.2m. One-off integration and strategy costs amounted to AUD 8.3m. Group EBIT decreased 2.4% to AUD 240.2m. Underlying profit after tax decreased 5.9% to AUD 126.7m, while reported profit after tax increased 0.3% to AUD 142.2m. Underlying EPS was 11.5 cps and reported EPS 12.9 cps.

Food Pillar: Diversified Sales Performance
Total Food sales, excluding tobacco, increased 7.2% to AUD 4.5bn. Including tobacco, total Food revenue decreased 0.8% to AUD 5.2bn, with tobacco sales down 35.1% to AUD 637.8m following regulatory changes. EBIT increased 3.5% to AUD 124.1m, supported by growth in Supermarkets and Foodservice & Convenience. Campbells & Convenience sales rose 14.0%, while Superior Foods recorded 27.9% growth, primarily due to timing of prior period sales. The Extra Specials promotional program expanded to 95 stores during the half.

Liquor Pillar: Market Share and Strategic Activity
Liquor sales increased 1.4% to AUD 2.6bn. EBIT declined 11.4% to AUD 43.5m, reflecting lower wholesale price inflation and one-off strategy costs of AUD 1.5m. The business completed the acquisition of Steve’s Liquor Warehouse and renewed the Liquor Stax contract for 10 years. Expansion of the Sorted digital platform into Liquor included Western Australia, South Australia, Victoria, Tasmania, and the Northern Territory, with rollout planned in Queensland and New South Wales in early 2026.

Hardware & Tools Pillar: Early Signs of Improvement
Total sales for Hardware & Tools increased 2.5% to AUD 1.9bn. Total Tools grew 3.0% and Hardware sales were up 2.4%. EBIT decreased 4.2% to AUD 90m due to retail margin pressure and higher depreciation. Positive EBIT leverage returned in the second quarter. Retail network sales increased 4.7%, with Total Tools contributing 9.8% growth.

Cashflow and Balance Sheet
Operating cashflow rose 59.9% to AUD 262.3m, with a three-year rolling cash realisation ratio of 105.9%. Net debt was AUD 598.6m (average AUD 798m) with a debt leverage ratio of 0.99x. Interim dividend declared at 8.5 cps, fully franked, with DRP available for shareholders.

Trading in 2H26
Early 2H26 data shows Group sales growth excluding tobacco at 2.9%, led by Food (+4.3%), Hardware & Tools (+3.8%), and broadly stable Liquor. Supermarkets and Total Tools recorded higher growth in the initial four weeks, while Foodservice & Convenience and Hardware were broadly steady.

Share Price Snapshot
MTS was trading 9.45 % lower at AUD 3.350 per share as of 01 December 2025.