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Metcash Limited (ASX:MTS)

ALERT: Price-sensitive ASX Announcement for MTS
Current share price for MTS : $3.030 0.29 (10.58%)+
Announcement
Release
11 May 2026 8:33AM
Price at Release
$2.740
Full Release
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Summary
Metcash Limited announced a Trading Update indicating an expected underlying Profit After Tax of $268-270 million for the year ended 30 April 2026. The company reported a group revenue growth of 0.7% which increases to 3.8% when excluding tobacco sales. The performance was resilient across its Food, Liquor, and Hardware & Tools businesses despite a challenging market. Liquor EBIT margin improved in the second half of the year, while sales momentum in Hardware & Tools accelerated. Metcash also achieved strong cash performance through effective cost management and working capital discipline. Additional cost-saving initiatives are projected to deliver at least $25 million in annualized savings by FY27, primarily through labor and procurement efficiencies. Despite external challenges such as increased freight and product costs due to Middle East conflicts, Metcash maintained its earnings by leveraging pricing mechanisms and managing inventory proactively.
Key Points
  • Underlying Profit After Tax expected to be between $268m and $270m
  • Group revenue growth: +0.7% (+3.8% excluding tobacco)
  • Resilient performance in Food and Liquor; Liquor EBIT margin recovered in 2H
  • Improved sales momentum in Hardware and Tools in 2H
  • Strong cash performance supported by effective cost and working capital discipline
  • Additional cost initiatives underway, with at least ~$25m annualized savings in FY27
  • No material impact on FY26 earnings from Middle East conflicts
  • Cash realization and leverage outcomes remained strong despite inventory investments
  • Metcash-supplied independents continued to gain market share in Liquor
  • Disciplined and proactive capital expenditure management
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.