Metcash Limited

FY 2026 revenue was approximately AUD 19.6 billion, up 3.8% excluding tobacco. EBITDA before strategy and integration costs increased 3.5% to AUD 774 million, and EBIT before those costs grew 1.6%. Operating cash flow was AUD 558 million, and the three-year cash realization ratio was 104.2%. Underlying EPS was AUD 0.245, while net finance costs were AUD 123.7 million. Food EBIT was AUD 261.8 million, up 5.4% (7% normalized), with food EBITDA at AUD 374.8 million, up 8.5%. Hardware and Tools revenue including charge-through was AUD 3.7 billion, up 4.3%. The board declared a final dividend of AUD 0.095 per share and total annual dividend of AUD 0.18 per share, implying a payout ratio of about 74% of underlying NPAT. FY 2027 guidance included depreciation and amortization up low double digits, corporate costs of AUD 20 million-AUD 22 million per half, net finance costs of AUD 130 million-AUD 135 million, and CapEx of approximately AUD 150 million excluding acquisitions.

Doug Jones emphasized that Metcash is not just a set of separate businesses but a single platform built on scale, trusted capabilities, and competitive networks across food, liquor, and hardware. He said the company is improving competitiveness, broadening earnings mix, and investing in technology, retail media, and store ownership to strengthen the core and add new growth drivers. His tone was confident but measured: he repeatedly noted there is “a long way to go,” but framed the current business as structurally stronger than a few years ago.

Deepa Sita highlighted resilient earnings, strong cash generation, and balance sheet flexibility. She pointed to revenue of approximately AUD 19.6 billion, EBITDA before strategy and integration costs of AUD 774 million, operating cash flow of AUD 558 million, a three-year cash realization ratio of 104.2%, leverage at around one times, and closing net debt of AUD 616.6 million. She also said investment spend moderated to about AUD 244 million, CapEx was AUD 175 million, and FY 2027 CapEx should be about AUD 150 million excluding acquisitions, while FY 2027 net finance costs are expected at AUD 130 million-AUD 135 million.

Analysts focused heavily on hardware retail margins, supermarket store ownership, and the capital needed for the new strategy. Doug said hardware margins are below mid-cycle and management is “not waiting” for the market to recover, but is taking action, including about AUD 15 million of people-cost restructuring tied mostly to hardware. On store ownership in food, management said the plan is to acquire roughly 10-15 stores per year, aiming for 25%-30% of IGA network revenue in about five to six years, with disciplined pricing and succession planning. Questions also covered online/rapid delivery, where management said the network’s thousands of stores and forward-deployed inventory give it an advantage, and liquor, where management said share gains have been durable despite pricing pressure.