News
Metcash revenue tops A$19.6B amid shift in consumer spending
Metcash reported higher FY26 earnings as growth in hardware, tools and liquor businesses helped counter ongoing declines in tobacco sales. Revenue reached approximately A$19.6 billion, while early FY27 trading showed improving momentum. The company maintained its dividend and continued to generate strong cash flow despite mixed retail conditions across Australia.
Metcash reported higher earnings for FY26 as growth in its hardware, tools and liquor operations helped offset a continued decline in tobacco sales, one of the biggest challenges facing Australia's wholesale retail sector.
The company generated revenue of approximately $19.6 billion for the year ended April 30, 2026, up 0.7% from the previous year. Excluding tobacco products, revenue increased 3.7%, highlighting stronger performance across its core distribution businesses.
Underlying net profit after tax was reported at between $268 million and $270 million.
Metcash recorded underlying profit of $275.5 million in FY25, though the latest result included benefits from cost management initiatives and improved contributions from non-tobacco categories. Chief executive Doug Jones said the business delivered resilient earnings despite uneven consumer spending and a challenging retail environment.
Hardware Division Drives Growth
The Hardware and Tools segment remained one of the strongest contributors to the group's performance. While residential construction activity remained subdued in parts of Australia, trade-focused businesses and the Total Tools network continued to support sales growth.
The division also benefited from demand linked to maintenance, renovation and commercial projects.
The Liquor division recorded stable trading conditions and improved profitability during the second half of the financial year, helping balance weaker conditions elsewhere in the portfolio.
Metcash said tobacco sales continued to decline as regulatory changes and the expansion of the illicit tobacco market affected legal retail channels.
Early FY27 Sales Show Improvement
The company reported a stronger finish to the financial year and improved trading momentum during June after softer conditions in May.
During the first seven weeks of FY27, total sales increased 1.9%. Hardware and Tools sales rose 5.8%, while Food sales increased 0.7% and Liquor sales grew 1.3%. Victoria remained the weakest-performing state, reflecting softer construction activity and ongoing pressure on discretionary household spending.
Metcash also maintained its dividend and reported strong cash generation, while reaffirming plans to deliver at least $25 million in annualised cost savings by FY27.
For investors in Australia and overseas, the results provide another indication that essential goods, trade-focused retailing and liquor distribution continue to outperform more discretionary retail categories as consumer spending patterns remain uneven.
Source: Capital Brief
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