Metcash FY25 Revenue Hits $19.5bn, EBITDA Up 8.6% Despite Hardware Headwinds

Solid Financial Performance Despite Sector Challenges

Metcash Limited delivered a robust financial performance for the fiscal year ended April 2025, with group revenue climbing 7.2% to $19.5 billion and EBITDA increasing 8.6% to $747.8 million. This growth was primarily driven by the Food pillar’s resilience and the Liquor business outperforming the market, even as the Hardware segment faced subdued trade activity amid a weak macroeconomic environment.

Underlying profit after tax, however, declined 2.4% to $275.5 million, reflecting margin pressures in Hardware and Liquor, alongside increased finance costs and depreciation. Notably, operating cash flow improved strongly by 11.7% to $539 million, prompting management to raise its cash realisation guidance to 80%-90%, underscoring the quality of earnings and disciplined working capital management.

Strategic Mergers and Organisational Reshaping

Metcash’s strategic agenda featured significant organisational changes designed to bolster growth and operational resilience. The merger of Superior Foods with Campbells & Convenience created a new Foodservice and Convenience business unit, while the Independent Hardware Group combined with Total Tools Holdings to form the Total Tools and Hardware Group. These moves aim to capture growth opportunities through vertical integration and extend Metcash’s reach along the value chain.

Leadership changes accompanied these structural shifts, with Scott Marshall appointed CEO of the merged Hardware group, bringing extensive experience from within Metcash and the broader industry. The board also saw renewal with the addition of directors David Whittle and Marina Go, both bringing expertise in digital transformation and independent retailing, while long-serving director Murray Jordan announced his retirement.

ESG Progress and Commitment to Sustainability

Environmental, social, and governance (ESG) initiatives remain a core focus for Metcash. The company reported meaningful reductions in Scope 1 and 2 emissions, aligning with science-based targets and achieving recognition in the Sustainalytics ESG Top Rated Companies list for the first time. Gender equality targets at leadership levels were maintained, with female representation exceeding 40%, and the organisation achieved a gender-neutral pay gap.

Safety metrics also improved, with a roughly 4% reduction in the Total Reportable Injury Frequency Rate, reflecting ongoing efforts to foster a safe and supportive workplace. Metcash’s sustainability reporting now aligns with the Global Reporting Initiative standards, signaling a maturing approach to transparency and accountability.

FY26 Trading and Outlook

Trading in FY26 has started strongly, with growth reported across all pillars. The Food pillar continues to expand, particularly in Foodservice and Convenience, despite a sharper-than-expected decline in tobacco sales due to new regulations. Liquor sales are supported by convenience and tailored ranges, while Hardware shows signs of recovery with improving sales in both trade and DIY segments.

Metcash plans to invest further in retail media, technology, and margin expansion initiatives, with additional corporate development costs expected in the first half of FY26. The company’s diversified portfolio, strategic mergers, and strengthened leadership team position it well to accelerate growth and create shareholder value in the coming years.