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Highlights

  • FY2025 revenue increased 8.9% to $17.3 billion (7.2% to $19.5 billion including charge-through sales).

  • Underlying EBIT rose 2.3% to $507.8 million, led by Food segment performance.

  • A fully franked final dividend of 9.5 cents per share declared, bringing full-year payout to 18 cents.

Metcash Ltd (ASX:MTS) shares surged to a 52-week high of $3.90 on Monday morning following the release of the company’s financial results for the year ended 30 April 2025. The ASX 200 stock was up 5% at the time of writing.

Revenue Growth Across Key Divisions

Metcash reported a group revenue of $17.3 billion, up 8.9% year-on-year. When charge-through sales are included, total revenue stood at $19.5 billion, representing a 7.2% increase. The growth was supported by performance across all three operating pillars—Food, Liquor, and Hardware—and bolstered by contributions from recent acquisitions, notably Superior Foods.

The Food segment delivered the highest growth, with revenue (excluding tobacco and including charge-through) rising 20.8% to $8.8 billion. This increase was attributed to the inclusion of Superior Foods and sustained growth in both Supermarkets and Campbells & Convenience channels.

Liquor sales increased by 3.4% to $5.3 billion, with continued market share gains supported by the IBA banner group. Hardware sales rose 2.4%, aided by new store openings and acquisitions within Total Tools.

Earnings Breakdown

The company reported a 2.3% increase in group underlying earnings before interest and tax (EBIT), reaching $507.8 million. This improvement was driven by the Food segment, where EBIT rose 2.9% to $216.1 million, primarily due to the impact of the Superior Foods acquisition and growth in supermarket operations.

However, not all segments recorded gains. Liquor EBIT declined by 4.7% to $104.1 million due to lower wholesale price inflation, which impacted margins. The Hardware segment reported a 10.2% drop in EBIT to $189.3 million, reflecting subdued retail conditions, margin pressure, and increased depreciation and amortisation costs related to acquisitions.

Underlying profit after tax decreased 2.4% to $275.5 million, which was within the company’s guidance range of $273 million to $277 million.

Dividend and Capital Management

Metcash declared a fully franked final dividend of 9.5 cents per share, bringing the total dividend for FY2025 to 18 cents per share. This represents a 10% reduction from the previous year and equates to a payout ratio of 72% on underlying profit after tax. The payout ratio remains slightly above Metcash’s target range.

Early FY2026 Trading Update

The company reported that it has made a positive start to FY2026, with group sales up 4.7% in the first seven weeks of trading. The Food segment continued to benefit from the integration of Superior Foods and growth in Campbells & Convenience. Supermarket sales, excluding tobacco, maintained growth despite ongoing value-conscious consumer behaviour.

Liquor continued its trajectory with further market share gains and the acquisition of Steve’s Liquor Warehouse, aimed at supporting operations in Victoria and Tasmania. Hardware performance showed early signs of improvement, with increased trade sales and increased demand in the frame and truss pipeline. Margins in Total Tools have also shown an upward trend.