Metcash FY25 Sales Rise 8.9% to $17.3bn; EBITDA Up 8.6% on Superior Foods Acquisition

Strong Revenue Growth and Food Pillar Momentum

Metcash Limited has delivered a solid financial performance for the year ended 30 April 2025, with group sales revenue rising 8.9% to $17.3 billion. This growth was largely underpinned by the Food pillar, which benefited from the strategic acquisition of Superior Foods in June 2024, expanding Metcash’s footprint in the growing foodservice market. The Food segment reported a significant increase in earnings before interest and tax (EBIT), reflecting strong performances across Supermarkets, Campbells & Convenience, and the newly integrated Superior Foods business.

Mixed Results in Liquor and Hardware Segments

While the Food division thrived, the Liquor and Hardware pillars faced headwinds. Liquor sales grew by 3.4%, supported by market share gains and shopper preference for independent retailers, yet EBIT declined by 4.7% due to lower wholesale price inflation impacting strategic buying opportunities. Hardware sales increased modestly by 2.4%, buoyed by acquisitions and new stores in Total Tools, but EBIT fell 10.2%, reflecting subdued trade activity and increased depreciation and amortisation costs linked to acquisitions and digital investments. Both Independent Hardware Group (IHG) and Total Tools maintained market share despite challenging conditions.

Profitability and Dividend Highlights

Underlying profit after tax decreased slightly by 2.4% to $275.5 million, influenced by the weaker earnings in Hardware and Liquor, alongside higher finance costs and depreciation. However, statutory profit after tax rose 10.1% to $283.3 million, boosted by significant items including a $15 million gain from the reversal of a previously impaired loan to an associate. Reflecting confidence in the business, the Board declared a fully franked final dividend of 9.5 cents per share, bringing the total dividend for FY25 to 18 cents per share.

Strategic Initiatives and Leadership Changes

Metcash continues to invest in its transformation program, Program Horizon, aimed at modernising its technology infrastructure to drive efficiency and simplify operations. The company also announced the strategic merger of its hardware businesses, Total Tools Holdings and IHG, to form the Total Tools and Hardware Group, effective post-FY25. Leadership changes included the appointment of Scott Marshall as CEO of IHG in November 2024, who will lead the merged hardware group from July 2025. These moves are designed to strengthen Metcash’s competitive position and support long-term growth.

Risk Management and Outlook

Metcash highlighted ongoing risks including economic pressures, regulatory compliance, and operational challenges across its pillars. The company maintains a strong balance sheet with $888.8 million in unused debt facilities and $84.8 million in cash reserves. Early FY26 trading has started positively, with group revenue up 4.7% in the first seven weeks, driven by all pillars. The company remains cautiously optimistic, leveraging its diversified portfolio and strategic initiatives to navigate a complex retail environment.