The Food business is now a materially larger and better-quality business. Its strong performance in the year is evidence of its increased resilience, further strengthened through the acquisition of Superior Foods, according to Metcash Group CEO Doug Jones.

Group financials Group revenue, which includes charge-through sales, increased 7.2% to $19.5bn, with growth in the Food, Liquor and Hardware pillars, partly buoyed by acquisitions.

Group EBITDA increased 8.6% to $747.8m reflecting strong growth in the Food pillar, which included the acquisition of Superior Foods in June 2024. Underlying EBIT increased 2.3% to $507.8m, with growth in the Food pillar being partly offset by decreases in the Liquor and Hardware pillars, and increased depreciation and amortisation.

Statutory profit after tax increased 10.1% to $283.3m, while underlying profit after tax was 2.4% lower at $275.5m. The underlying result reflects lower earnings in the Hardware and Liquor pillars and an increase in finance costs and depreciation and amortisation.

Operating cash flow was very strong, increasing 11.7% to $539 million, and the three-year rolling cash realisation ratio was ~95%, above Metcash’s guidance of 75%–85%. “An improvement in capability and execution has underpinned our confidence in lifting this guidance to 80%–90%,” according to Mr Jones.

Net debt at the end of the financial year was $577.4m and the debt leverage ratio at the end of the financial year was 0.96x.

Total dividends for the year were 18.0 cps, fully franked, slightly above the target payout ratio of ~70% of underlying profit after tax.

Pillar financials

Food

In Food, independents have maintained market share in difficult trading conditions against intense competition. “The differentiated value offer from our independents continues to resonate with shoppers, with foot traffic steady and growth in sales volumes, excluding tobacco,” said Mr Jones.

“Our Campbells & Convenience business continued to deliver strong growth, particularly in the petrol and convenience channel. Following the win of a supply contract with Ampol in the year we are now the leading supplier to the sector, partnering with all major petrol and convenience brands.”

Superior Foods delivered strong sales growth and renewed major contracts worth around $240 million, or ~20% of annual turnover. “This is evidence of the trust that major customers have in the business.”

Total revenue for the Food pillar, including charge-through, increased 11.1% to $10.6bn. This included a 19.8% decline in tobacco sales, largely reflecting an acceleration in the illicit tobacco trade. Excluding tobacco, total Food revenue, including charge-through, increased 20.8%, with Supermarkets up 3.2% and Campbells & Convenience up 6.0%. As compared to their prior year, Superior Foods’ sales increased 4.6% from the period since acquisition (3 June 2024).

“We merged Superior Foods with Campbells & Convenience in the second half of the year to form the Metcash Foodservice and Convenience business unit,” he said. “This merger is designed to support the acceleration of several value-creation initiatives.”

Total Food EBIT increased 18.2% to $248.4m and includes $2.5m of restructuring costs. The EBIT margin improved 14 basis points to 2.3%, supported by a mix shift away from lower margin tobacco sales.

“We have a strong track record of effectively managing the impact of the decline in tobacco sales, as seen in the consistent earnings growth in Supermarkets and Campbells & Convenience over the past few years,” said Mr Jones. “Our strategy to achieve this is founded on growing our customer base and sales as a key distributor for all tobacco suppliers, winning profitable market share, restructuring our commercials and initiating a number of supply chain initiatives to make the business more efficient.”

Liquor

“Our Liquor pillar has performed exceptionally well over the past few years with continued shopper preference for convenience format stores and the quality of the independents’ differentiated offer,” said Mr Jones. These stores offer value across locally curated ranges, located in easy to access places.

“Our diversified strategy includes a multi-channel approach focused on growth through on-premise customers, contract customers and IBA-bannered customers. This is key for supporting the growth and resilience of our Liquor pillar.

“The independent network has continued to outperform and win market share, led by our IBA network,” he said.

“Since FY22, our share of the packaged liquor market has increased by 2.7 percentage points to 31.1%. A key factor in this success has been the strength of the convenience format, supported by the in-store execution of our independent partners and strong supplier relationships.

“During the year we commenced a new $100m p.a. supply agreement with Lion in South Australia, which is already delivering benefits for Lion, Metcash and our shared customers.

“In June 2025 we were pleased to announce that we had entered into an agreement to purchase Steve’s Liquor Warehouse, a group of eight stores located in Victoria and Tasmania. This is in line with our strategy of winning with independents and extending through the value chain to move closer to the customer,” said Mr Jones.

Total revenue for the Liquor pillar, including charge-through, increased 3.3% to $5.3bn, with wholesale sales to retail and contract customers increasing 3.8%. Sales to on-premise customers recovered in the second half and were flat for the full year.

Liquor’s EBIT, while down 4.7% to $104.1m, reflects a strong outcome in the face of materially lower wholesale price inflation, which impacts margin expansion opportunities.

Food

Metcash Food continues to evolve and prove itself as a resilient and diversified business. “In FY25, we strengthened our supermarket network while expanding further in foodservice and convenience, cementing our position as the largest wholesaler and distributor of food to independent businesses in Australia,” according to Metcash Food CEO Grant Ramage.

“Our world-class supply chain, digital transformation initiatives and community-focused approach have supported our continued growth (excluding the effects of illicit tobacco), in a competitive market.” The business continued to grow strongly in FY25, with revenue (including charge-through sales) up ~11%, buoyed by the acquisition of Superior Foods in June last year.

Supermarkets

“We support thousands of independently owned supermarkets across Australia, including over 1,250 stores operating under our IGA and Foodland banners,” said Mr Ramage. “We provide bannered independent retailers with marketing and operational support, as well as the supply chain infrastructure they need to compete effectively and be the ‘Best Store in Their Town’.

The IGA store network continues to grow, with 22 new stores opening in FY25 including nine core (medium to large) format stores. “We are also helping IGA retailers reinvest in upgrading their stores, with 96 stores completing the Diamond Store Accelerator program during the year.” The IGA network represents approximately 60% of Food pillar sales.

Driving shopper engagement

IGA stores provide shoppers with friendly local service, convenience and a differentiated offer with ranges tailored for the local community and demographics. “IGAs support local suppliers and stock many brands that you cannot find anywhere else,” said Mr Ramage. “They also provide value to cost-conscious shoppers through our Low Prices Every Day and Price Match programs, and we have continued to expand our Community Co and Black & Gold private label ranges.” Sales of private label products were up 7.6% in the year.

“Our relaunched IGA Rewards loyalty program continues to gain momentum, with 989 stores now participating across the network,” he said.

Through the new IGA Rewards app, shoppers can access exclusive deals, shop in-store at participating IGA retailers and earn IGA Cash to spend on their next visit. Retailers benefit from a connected digital ecosystem that drives foot traffic, builds loyalty and provides a deep view of performance and shopper insights. For suppliers, IGA Rewards offers a national platform to run targeted direct-to-consumer campaigns, measure return on investment and gain valuable shopper insights.

Foodservice and Convenience

“In addition to our Supermarkets business, the Food pillar comprises a newly merged Foodservice and Convenience business which incorporates the Superior Foods and Campbells & Convenience businesses,” said Mr Ramage.

Superior Foods has a diverse and complementary customer base spanning quick service restaurants, cafes, caterers, aged care and hospitality venues. “The acquisition of Superior Foods last year expands our range and distribution network to provide a one-stop-shop for our foodservice and convenience customers.

“We are already unlocking opportunities with the integration of Superior Foods into the Metcash network, including working with suppliers to lower the cost of goods and cross-selling grocery and food service ranges. We are also working to combine our comprehensive national distribution network including DCs, sites and branches.”

Underpinned by a renewed growth strategy, Campbells & Convenience has established itself as the leading supplier to the petrol and convenience sector.

“A key milestone in the year was the formation of a long-term strategic partnership with Ampol that includes supplying over 1,000 core products to more than 600 Foodary stores nationwide,” said Mr Ramage. “We are now a supplier to all the major petrol and convenience operators in Australia.”

Digital transformation

“We remain focused on making it even easier for both suppliers and retailers to do business with us, with our leading digital B2B marketplace, Sorted, continuing to expand,” said Mr Ramage. “Our supermarket customers can procure products from our mega DCs as well as from a large and growing range of charge-through suppliers and ~73,000 products available on the platform.”

Over 2,000 retailers are now using Sorted on average three times a week to place orders, with 100% of charge-through sales now processed on the platform.

The new Campbells website and mobile application transitioned to Sorted in March 2025, with ~55% of Campbells sales now through the platform. “These platforms have been redesigned to provide a faster, more intuitive and seamless user experience.”

World class supply chain

“We have made a significant investment in our supply chain capability to enhance efficiency, reduce lead times and operate with increased levels of flexibility,” said Mr Ramage. “In mid-2024, we opened our new mega distribution centre (DC) in Truganina, Victoria, complementing our other DCs in major capital cities, 16 Campbells branches and 25 Superior Food branches spread across both metro and regional areas. We also made significant upgrades to the mega DC in Canning Vale, Western Australia during the year.

“We plan to leverage the strength of our supply chain to deliver more products to more customers, more often. As a reflection of this, it was pleasing to see Australia’s most popular yoghurt brand Chobani move its product into the Metcash mega DCs in April 2025, away from their prior direct-to-store model.”