Metcash delivered a resilient performance in FY26, despite a year of mixed trading conditions, ongoing cost-of-living pressures and sector-specific challenges.
Group revenue increased to $19.6 billion, up 0.7%, and up 3.8% excluding tobacco. Group EBIT was $503.7 million, up 1.6% excluding $12.4 million of strategy and integration costs.
Group earnings improved modestly, supported by a strong food result, continued growth in liquor and improved momentum in hardware and tools in the second half.
In an address at the group’s AGM yesterday, Metcash Group Chair Peter Birtles said the performance reflected the strength of its diversified portfolio, disciplined execution and the advantages of its independent retail model
Strength in food
Metcash’s food pillar delivered a strong performance, supported by improved competitiveness in supermarkets and ongoing growth in foodservice and convenience. The continued expansion of this business is also helping to further diversify the Group’s earnings base.
Total FY26 food sales were $10.5 billion, up 0.6% on the prior year.
Mr Birtles said the success of the tobacco mitigation strategy has helped the business offset at least $65 million of earnings from the loss of around $1.8 billion of tobacco sales since FY21, largely to illicit trade, as well as lower earnings from the market downturn in hardware and tools.
Winning with Independents
Metcash’s results are underpinned by a clear strategic direction, said Mr Birtles.
“Our strategy remains centred on ‘Winning with Independents’,” he said. “It leverages Metcash’s unique combination of scale, differentiated capabilities and strong competitive networks.
“This model continues to underpin the Group’s resilience and positions the business to capture growth opportunities across large and essential markets.”
The Group continued to make meaningful progress in executing this strategy during FY26, said Mr Birtles, noting the independent networks across food, liquor and hardware and tools remain healthy and competitive, and continue to attract retailers and suppliers.
Investing in technology
Metcash continued to invest in digital and data capabilities across the group in FY26, including scaling the Sorted B2B marketplace and the near completion of the Horizon ERP program.
“We are also building a modern, AI-ready operating environment in partnership with Microsoft, and investing to make the business more scalable for the future,” said Mr Birtles.
“These initiatives are designed to strengthen the core platform, improve operational efficiency and support future growth opportunities, including extending our offer in services such as retail media, loyalty and digital.”
Looking ahead
The Group has seen continued sales growth across all pillars in the first 18 weeks for FY17.
Total Group sales (excluding tobacco) were up 2.8% (+3.5% including tobacco) Total food sales were up 2.6% (+3.8% including tobacco), with supermarkets up 2.6% (+1.3% including tobacco) and foodservice and convenience up 2.8% (+11.3% including tobacco).
Supermarket sales have remained resilient despite a highly competitive trading environment. Tobacco sales continue to improve, supported by strong trading in Queensland, NSW and Western Australia where regulatory measures have been implemented and effectively enforced
In foodservice and convenience, Superior Food sales growth in corporate accounts partly offset by a decline in ‘Street’, QSR and shipping segments. Recent contract wins in petrol and convenience have supported sales improvement, primarily in tobacco
Mr Birtles said while trading conditions are expected to remain challenging, Metcash enters FY27 in a position of strength.
“The Group has a clear strategy, strong market positions and a resilient business model,” he said.
