Metcash posts rise in half-year profit, hardware brands see 'early signs' of improvement
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The news: Retail group Metcash has reported a 0.3% rise in statutory profit after tax to $142.2 million for the first half of FY26, boosted by sales growth across all business segments, excluding tobacco.
The numbers: The IGA and Mitre 10 operator said group revenue rose 0.1% year on year to $8.5 billion. Group EBITDA was up 2% to $367.2 million.
Total food sales increased 7.2% to $4.5 billion, liquor sales were up 1.4% to $2.6 billion, and hardware and tools lifted 2.5% to $1.9 billion.
However, group underlying profit after tax decreased 5.9% to $126.7 million, reflecting lower earnings in the hardware and liquor pillars, increased finance costs and increased depreciation and amortisation.
The board declared an interim dividend of 8.5 cents per share, slightly about the company's target payout ratio of 70% of underlying profit after tax.
The context: Metcash said it is seeing "early signs of improvement in trading activity" in its hardware and tools segment. In June, the group announced it would consolidate its tool supplier Total Tools and its Independent Hardware Group amid challenging trading conditions in the sector.
What they said: "The business has delivered solid results in tough trading conditions, supported by disciplined operational performance and the successful execution of our strategy," said group CEO Doug Jones.
"Despite the grocery market being at its most competitive in many years, the IGA network is now more competitive than ever."
The source: ASX
