Metcash has delivered its financial results for the full year ended 30 April 2026, with the group citing strong sales growth from ongoing investment in strategic and technological capabilities despite continued market challenges.
Liquor delivered a resilient result, with revenue lifting one per cent to $5.4bn as a flexible supply chain and channel diversification strengthened results.
Notably, Australian Liquor Marketers (ALM) market share (excluding on-premise) now sits at 32.3 per cent – up 570 basis points since FY20.
This is underpinned by the growing network of stores in the Independent Brands Australia (IBA) network including with 211 new stores from Cellarbrations, IGA Liquor, Thirsty Camel and more, added since FY24.
Slightly lower than the previous financial year, total liquor EBIT was $100.1m, down 3.8 per cent due to softer first half trading. However, the pillar delivered a stronger second half as consumer demand for convenience and localised offers remained robust and inflation increased.
Group CEO Doug Jones further explained: “In Liquor, we grew revenue by one per cent, which was ahead of the market, and increased share… While EBIT was lower, the business delivered a stronger second half, supported by diversified channels and our independents agility, shopper-led range, value and service.
“We are winning with independents because we combine the benefits of scale with the agility and community connection of local ownership. This combination is difficult to replicate and continues to underpin our performance across all pillars.”
Liquor retail growth was also driven by customer-focused ranging, as consumer spend moved into “healthier, easier beer formats, RTD innovation and premium occasions”.
As a result, low carb beer delivered 13.5 per cent growth, followed by Tequila up 10.2 per cent, mid-strength beer up 9.2 per cent and RTD/Seltzer rising 3.5 per cent in FY26.
The business also continued to benefit from strong execution across both on- and off-premise channels with the renewal of over $500m of national retail and on-premise customer contracts.
Metcash’s total retail earnings now represent 12.5 per cent of the total group revenue of $19.6bn, which is up 0.7 per cent from total earnings in FY25, with solid results underpinned by resilience in food and liquor.
Looking to the new financial year, group sales have made a steady start, with food and liquor experiencing a subdued May.
The group says this result reflects softened consumer sentiment in response to geopolitical uncertainty and cost-of-living pressures. Both pillars have recovered well in the first three weeks of June, trading in line with FY26 growth levels.
In the first seven weeks of FY27, total liquor revenue is expected to increase by 1.3 per cent with wholesale sales to on-premise customers up 6.4 per cent and wholesale sales to IBA retail and contract customers up 0.2 per cent.
“We are well positioned with a unique combination of scaled assets and capabilities that generate resilient, quality cashflows. Our AI-ready technology is positioned to leverage broad enterprise stack to unlock new levels of insight, efficiency and capability across our network.
“Our competitive advantages continue to strengthen, our digital platforms are scaling, and our retail networks are growing. Metcash enters FY27 with strong momentum, a clear strategy and a deep commitment to helping independent retailers thrive in their local communities,” stated Jones.
Data capabilities continue to scale, with the Sorted B2B marketplace now representing $5.9bn or approximately 30 per cent of total company revenue, reflecting the strategic modernisation of its core wholesale platform.
Metcash also announced the near-completion of Horizon, the ERP upgrade program, to deliver an AI-ready platform that enables the group to leverage Microsoft’s broad enterprise technology stack.
The new system will deliver improved inventory health, operational intelligence and a single-shopper view, enhancing new growth initiatives in retail media.
The Group expects to continue strengthening its competitive advantages, expand its digital and AI-enabled capabilities, and support independent retailers.
This comes after the group announced the appointment of Nicky Sparshott as a Non-Executive Director effective 1 July 2026, as well as the retirement of long-serving director Helen Nash.
Sparshott brings more than 30 years’ global experience in FMCG and retail across recognisable consumer brands, including Unilever, Coca-Cola and Procter & Gamble.
In a statement on the ASX last week, Metcash said the appointment reflects the board’s “proactive and ongoing approach to renewal, ensuring it continues to have the right mix of skills and experience” in order to support strategic, long-term growth.
Extracted in full from: https://theshout.com.au/national-liquor-news/convenience-localisation-and-value-underpin-metcash-sales-growth/
