What was the expected profit for Metcash (ASX:MTS) in the 2026 financial year?

Metcash (ASX:MTS) announced an expected underlying profit after tax (NPAT) of between $268 million and $270 million for the year ended 30 April 2026. This preliminary result suggests the company managed to maintain profitability despite operating in a challenging economic landscape.

Why did Metcash (ASX:MTS) perform better in the second half of the year?

The company credited a "stronger second half" for underpinning its full-year profit guidance, driven by disciplined execution across its portfolio. Specifically, the liquor division saw a recovery in EBIT margins, and the hardware and tools segment gained sales momentum.

How did tobacco sales impact Metcash (ASX:MTS) revenue growth?

While total group revenue growth for Metcash (ASX:MTS) was a modest 0.7%, growth was significantly higher at 3.8% when excluding tobacco sales. This disparity highlights a continuing decline or shift in the tobacco category, while the core food and liquor operations remain fundamentally strong.

How is the Metcash (ASX:MTS) liquor division performing?

The liquor division experienced a recovery in its EBIT (Earnings Before Interest and Tax) margins during the second half of the 2026 financial year. This margin recovery is a positive signal for traders, suggesting that the company has regained pricing power or improved its supply chain efficiency.

What is the outlook for the Metcash (ASX:MTS) hardware and tools segment?

The hardware and tools segment reported improved sales momentum in the second half of the year, though management is now taking "structural cost actions" to bolster long-term profitability. These actions suggest that while demand is returning, Metcash is focused on lean operations to protect margins in a competitive market.

What are the key cost-saving targets for Metcash (ASX:MTS) heading into FY27?

Metcash has launched a group-wide efficiency drive aimed at delivering at least $25 million in annualised savings by the 2027 financial year. The strategy involves structural cost actions in the hardware division and active management of capital expenditure.

Metcash eyes $270M profit amid second-half recovery

Written by Liezl GambePublished May. 11 2026Last Updated May. 11 2026

Metcash (ASX:MTS) has signalled a resilient finish to the 2026 financial year, announcing an expected underlying profit after tax of between $268 million and $270 million for the period ended April 30.

The diversified wholesaler credited a "stronger second half" for underpinning the result, pointing to disciplined execution within a challenging economic landscape.

While total group revenue growth remained modest at 0.7%, the figure climbed to a more robust 3.8% when excluding tobacco sales, highlighting the underlying strength of the company’s core food and liquor operations.

The liquor division saw a recovery in its EBIT margins during the latter half of the year, while the food sector maintained its resilient performance despite inflationary pressures on consumer spending.

The hardware and tools segment also reported improved sales momentum in the second half. To bolster long-term profitability, Metcash has initiated structural cost actions within this division.

The measures are part of a broader group-wide efficiency drive, which includes active management of capital expenditure and new cost initiatives designed to deliver at least $25 million in annualised savings by the 2027 financial year.

Management emphasised a strong cash performance, supported by rigorous working capital discipline and reduced capital outlays.

The preliminary, unaudited figures provide a positive lead-in to the company's full-year results, which are scheduled for formal release on June 22.

At the time of reporting, Metcash's share price was $2.95.