Metcash (MTS) H1 2025 earnings summary

Executive summary

• Group sales/revenue grew 6.3% to $9.6bn, with Food and Liquor strength offsetting Hardware softness.

• Underlying EBIT was flat at $246.1m; reported PAT up 0.6% to $141.8m, with underlying PAT down 5.5%.

• Superior Foods acquisition completed, contributing $554.8m in sales and $14.3m EBIT, enhancing diversification.

• Cost-out and synergy programs on track, targeting $15m in annualised savings.

• Interim dividend of 8.5cps declared, maintaining ~70% payout ratio.

Financial highlights

• Group sales up 6.3% year-over-year to $9.57bn; underlying earnings flat; gross profit rose to $1,095.3m.

• Underlying EPS at 12.3c, down 16.3%; reported EPS 13.0c; basic EPS up from 12.9c.

• Operating cash flow declined to $164m, mainly due to Superior Foods acquisition timing.

• Net debt increased to $725m, mainly due to acquisitions; DLR at 1.26x.

• EBITDA growth supported by acquisitions and cost management.

Outlook and guidance

• Early 2H25 trading strong: total sales up 8% in first four weeks, with Food ex-tobacco up 22.6%.

• Liquor expected to continue market share gains; Hardware positioned for recovery despite ongoing softness.

• FY25 capital expenditure (excluding acquisitions) reduced by $30m below guidance.

• Net finance costs for FY25 expected in the $120–125m range, assuming stable interest rates.

• Superior Foods expected to deliver scale and growth in foodservice.