Metcash CEO Doug Jones is praising the resilience of the wholesaler’s business model after it managed to post modest sales growth in a year blighted by external challenges.
In an update to investors on the ASX, in which it disclosed its performance for fiscal 2026, Metcash saw year-end revenues of $19.6 billion, up 0.7 per cent from 2025. This figure, however, came in the wake of declining profits, which fell by 2.4 per cent year-on-year.
“Despite mixed trading conditions across our markets, we delivered solid earnings, strong cash generation, and continued progress on our long-term strategic priorities,” Jones said. “Our scale, our national supply chain, and our deep relationships with independent retailers remain powerful competitive advantages.”
Jones said that Metcash’s “unique platform” as a distributor reaches around 95 per cent of the Australian population. “We are winning with independents because we combine the benefits of scale with the agility and community connection of local ownership,” he added. “This combination is difficult to replicate and continues to underpin our performance across all pillars.”
The group’s food segment was its strongest performer across the year, lifting earnings by 5.4 per cent. Elsewhere in the group, corporate, liquor, and hardware and tools sales all declined, with the latter seeing the steepest fall at 6.3 per cent.
“Hardware’s earnings were subject to softer trade demand in parts of the network, particularly in Victoria and Tasmania,” said Jones. “The integration of the Total Tools and Hardware Group is now complete, and the combined business is well-positioned as we target a return to mid-cycle margins.”
Metcash then shared how the start of its fiscal 2027 is going, with the first seven weeks seeing a 2.4 per cent uplift in sales, excluding tobacco; Total Tools’ sales up 9.5 per cent. While the group said it expects margin pressures to persist, it continues to target about $25 million in annual cost savings.
“Looking ahead, we are well-positioned with a unique combination of scaled assets and capabilities that generate resilient, quality cashflows,” Jones added. “Our competitive advantages continue to strengthen, our digital platforms are scaling, and our retail networks are growing.”
