Metcash reports resilient half year results despite challenging market

Metcash Limited reported a solid performance for the first half of FY26. Group revenue increased by 0.4% to $9.6bn (4.5% excluding tobacco), and Group EBITDA was up 2.0% to $367.2m (4.3% excluding one-off costs). Operating cash flow saw a significant rise of 60% to $262m, with a 3-year average cash realisation ratio of 105.9%. Underlying profit after tax stood at $126.7m, with a reported profit after tax of $142.2m. The company also declared an interim dividend of 8.5 cents per share, representing approximately 74% of underlying profit after tax.

The company's strategic focus on diversification and investment in core businesses has underpinned these results. Food sales (excluding tobacco) grew by 7.2%, driven by strong performance in Foodservice & Convenience. Liquor continued its market outperformance, with total sales increasing by 1.4%, while Hardware & Tools demonstrated resilience with a 2.5% rise in total revenue despite a challenging market. Metcash continues to invest in its digital marketplace, Sorted, and its Retail Media network, LocalEyes.