Metcash (MTS) H1 2026 earnings summary

Executive summary

• Delivered solid results in 1H26, maintaining momentum across core businesses despite challenging market conditions and accelerated tobacco decline.

• Net profit after tax attributable to shareholders was $142.2 million for 1H26, up slightly from $141.8 million in 1H25.

• Diversification and disciplined execution supported resilience, with strong cash generation and positive EBITDA leverage.

• Integration of acquisitions and expansion of digital and retail media platforms advanced strategic positioning.

• No material subsequent events occurred after the reporting period.

Financial highlights

• Group revenue reached $9.6bn, up 0.4% year-over-year (+4.5% ex-tobacco).

• EBITDA rose to $380.2 million from $367.0 million, and EBIT was $257.6 million versus $262.9 million in 1H25.

• Underlying profit after tax was $126.7m, down 5.9% year-over-year.

• Operating cash flow increased 60% to $262m; 3-year rolling cash realisation ratio at 105.9%.

• Interim dividend of 8.5cps declared, ~74% of UPAT.

Outlook and guidance

• Growth momentum (ex-tobacco) continued into 2H26, with positive trends in Supermarkets and Total Tools.

• Program Horizon, a major technology upgrade, is progressing and expected to complete in FY27.

• Planning for sustained sales momentum, leveraging business diversity and disciplined strategy execution.

• Tobacco sales expected to remain under pressure; mitigation includes new supply contracts.

• No new accounting standards materially impacted the results; outlook remains stable.