Metcash Ltd
ASX:MTS

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Metcash Ltd
ASX:MTS
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Price: 3.25 AUD -1.22% Market Closed
Market Cap: 3.6B AUD

Metcash Ltd
Investor Relations

In the intricate tapestry of Australia's retail landscape, Metcash Ltd. weaves itself as a central thread through its ownership of independent retail brands and a comprehensive wholesaling network. Rooted in Sydney, Metcash has orchestrated a supply chain symphony that bridges manufacturers with the continent's independent retailers, ensuring that groceries, hardware, liquor, and more reach local communities with reliability and efficiency. The company operates through a triumvirate of key divisions: Food, Liquor, and Hardware. Each division aligns with Metcash's overarching mission to empower independent retailers through vast distribution networks, competitive pricing, and marketing prowess. The Food division caters primarily to independent supermarkets under banners like IGA and Supa IGA, distributing everything from pantry staples to fresh produce.

Metcash monetizes its operations primarily through wholesaling to its extensive network of affiliated retailers and franchisees. By leveraging its scale, Metcash competes on price while providing the local entrepreneurial spirit that distinguishes its retail partners from corporate chains. The Liquor division focuses on supplying independent bottle shops, and the Hardware division serves independent hardware stores through brands such as Mitre 10 and Home Timber & Hardware. By championing these independent stores, Metcash harnesses community loyalty, drawing consumers who favor local businesses over global conglomerates. This strategic position not only cements Metcash's role in the supply chain but also sustains a business model that thrives on adaptability, community engagement, and strategic alliances—pillars that support its steady revenue streams and economic resilience.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Dec 1, 2025
AI Summary
Q2 2026

Solid Results: Metcash delivered half-year results that management called “solid but behind our own expectations,” with topline growth despite challenging market conditions.

Revenue Growth: Revenue excluding tobacco was up 4.5%, and total revenue including tobacco was up 0.4% to $9.6 billion.

Profitability: EBIT rose 22% and cash earnings (EBITDA as proxy) rose 34%. Reported EBIT was $240.2 million; underlying earnings were $126.7 million or $0.115 per share.

Dividend: Board declared an interim, fully franked dividend of $0.085 per share.

Strong Cash & Balance Sheet: Operating cash flow grew nearly 60%, helping reduce net debt by $126 million and keeping leverage at the lower end of the target range.

Food Segment: Food earnings grew 9.8% at EBITDA and 3.6% at EBIT despite a significant decline in tobacco sales; IGA's price competitiveness and promotional programs drove improved growth in Q2.

Liquor & Hardware: Liquor won market share in a tough market, though flat sales and margin pressure persisted. Hardware & Tools saw improved growth, especially in Total Tools, with early signs of market recovery.

Strategic Initiatives: Integration of acquisitions is progressing, digital platform Sorted nears $6 billion scale, and Project Horizon is on schedule with only an immaterial increase in investment.

Guidance: Management expects positive sales momentum to continue in the second half, with strategy and integration costs to drop off in FY27.

Key Financials
Revenue
$9.6 billion
EBIT
$240.2 million
Underlying Earnings
$126.7 million
EPS
$0.115 per share
Dividend
$0.085 per share (fully franked)
Operating Cash Flow
$262 million
Net Debt
$600 million (closing), $800 million (average)
Cash Realization Ratio (3-year rolling)
106%
ROFE
20%
Dividend Payout Ratio
Approximately 74% of underlying NPAT
Debt Leverage Ratio
1x (closing), 1.32x (average)
Other Earnings Calls
2026

Management

Ms. Deepa S. Sita C.A., M.B.A.
Chief Financial Officer
No Bio Available
Mr. Grant Ramage
Chief Executive Officer of Metcash Food
No Bio Available
Mr. Richard Murray ASIA, B.Com., B.Comm, C.A., F.C.A., Grad.Dip.
Chief Executive Officer of Total Tools
No Bio Available
Mr. Douglas Jones B.Com., C.A.
Group CEO & Executive Director
No Bio Available
Mr. Neil Whiteing
Chief Information Officer
No Bio Available
Steve Ashe
General Manager of Corporate Affairs & Investor Relations
No Bio Available
Ms. Julie S. Hutton GAICD, L.L.B., L.L.M.
Chief Legal, Risk & Compliance Officer and Company Secretary
No Bio Available
Ms. Danielle Jenkinson BDES, M.B.A.
Chief People & Culture Officer
No Bio Available
Kerrie Holmes
Head of Legal - Liquor & Assistant Company Secretary
No Bio Available
Ms. Hai Yun Chen
Head of China Export Development
No Bio Available

Contacts

Address
NEW SOUTH WALES
North Sydney
Macquarie Park, 1 Thomas Holt Drive
Contacts
+61297413000.0
www.metcash.com