Metcash (MTS) H2 2025 earnings summary

Executive summary

• Achieved strong profit growth of 10.1% year-over-year, driven by 8.9% revenue growth and successful acquisitions, with disciplined execution across all business pillars.

• Food division expanded and diversified, liquor gained market share, and hardware showed improvement in 2H with positive momentum into FY26.

• Integration of Superior Foods and other acquisitions progressing well, with synergy benefits on track.

• Strategic focus on supporting independent retailers, expanding revenue streams, and leveraging logistics and technology platforms for future growth.

• Balance sheet remains flexible, supporting ongoing investment and shareholder returns.

Financial highlights

• Group revenue reached $19.5bn, up 7.2% year-over-year; statutory sales revenue $17.3bn, up 8.9%.

• Group EBITDA grew 8.6% to approximately AUD 748 million; underlying EBIT up 2.3% to $507.8m; reported profit after tax increased 10.1% to $283.3m.

• Operating cash flow increased 11.6% to $539m; three-year rolling cash realization ratio at 94.7%.

• Underlying EPS at 25.1cps; full-year dividend of 18.0cps, payout ratio of about 72% of underlying NPAT.

• Net debt closed at $577.4m, with average net debt at $805m and DLR of 1.33x.

Outlook and guidance

• CapEx guidance for FY2026 reduced to $200m, reflecting disciplined capital allocation and timing shifts.

• Net finance cost for FY2026 expected between $120–125m.

• Positive start to FY26 with sales growth in all pillars; total sales up 4.7% in first 7 weeks.

• High confidence in mitigation strategies for tobacco excise changes, with limited EBIT impact expected.

• Confident in continued store growth for Total Tools, with each new store evaluated rigorously.