Metcash posts 1.9% increase in FY26 earnings on improved trading
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The news: Wholesale distribution group Metcash has reported a 1.9% year-on-year increase in group earnings before interest, tax, depreciation and amortisation (EBITDA) to $761.7 million, citing the resilient performance of its food and liquor divisions and improved sales momentum in hardware and tools.
The numbers: Group revenue rose 0.7% to $19.6 billion, while underlying EBIT fell 1.6% to $503.7 million.
The group’s operating cashflow reached $558 million, representing a 3.5% year-on-year increase. The company declared a fully franked dividend of 18 cents per share.
The context: Metcash stated that despite mixed trading conditions across its markets, it has seen continued cash generation, primarily driven by the food segment, which delivered a 5.4% EBIT increase amid continued momentum in its supermarkets’ performance.
The hardware and tools division also saw improved momentum in the second half, recording a 4.3% increase following the finalisation of the Total Tools and Hardware Group integration.
The company flagged softer trading conditions in May, weighed down by weaker consumer sentiment stemming from geopolitical uncertainty and cost-of-living pressures, however it stated that it remains on track to achieve expected annual savings of $25 million in FY27.
The source: ASX
