Metcash (MTS) investor relations material

Financial performance and outlook

• FY 2026 net profit after tax is expected to be AUD 268–270 million, reflecting portfolio resilience and a strong second half.

• Group revenue grew 0.7% (3.8% excluding tobacco), with strong cash flow, cash realization above guidance, and disciplined cost management.

• Operating cash flow was robust, and debt leverage ratio is expected at the lower end of the 1x–1.75x target range.

• Capital expenditure (excluding acquisitions) was AUD 170 million, about AUD 30 million below guidance due to proactive cost management.

• No significant CapEx catch-up is expected, with disciplined project management and focus on non-trade procurement.

Segment performance and operational highlights

• Food and Liquor delivered strong outcomes, with Food margins improving due to a lower tobacco sales mix and effective promotional programs.

• Liquor EBIT margins returned to 2% in the second half, driven by operational improvements and strategic buying.

• Hardware and Tools saw improved second half sales momentum, but margins were dampened by weaker performance in Victoria and Tasmania.

• Foodservice & Convenience achieved 7.3% like-for-like growth, supported by new contract wins and growth with existing customers.

• Liquor independents gained market share, supported by a multi-channel strategy and on-premise recovery.

Cost management and restructuring

• Ongoing cost out programs are expected to deliver at least AUD 25 million in annualized savings in FY 2027, mainly from labor restructuring and procurement.

• Restructuring costs are estimated at AUD 6 million, with payback well under 12 months.

• Labor savings will be weighted to Hardware and Tools, with operational management structures being simplified.

• Integration of business units has enabled further cost reductions in management structures.

• Additional cost initiatives are underway to support future growth and maintain cost discipline.