Metcash posted higher revenue in the fiscal year ended April 30, 2025, thanks to the growth in its food, liquor and hardware segments, partly buoyed by acquisitions.
The group’s revenue rose 8.9 per cent to $17.3 billion, with food sales, excluding tobacco, soaring 20.8 per cent to $8.8 billion, reflecting positive performance in both Supermarkets and Campbells & Convenience, and the inclusion of Superior Foods since June 3, 2024.
Including tobacco, sales of which fell 19.8 per cent, food sales climbed 11.1 per cent to $10.6 billion.
Sales of private label products increased 7.6 per cent while and sales of items on promotion continued to grow faster than those not on promotion.
During the year, 22 new IGA stores were opened, including nine core (medium to large) format stores.
Metcash said that its diversification strategy resulted in sales to the IGA network, now accounting for about 60 per cent of total food sales.
The company also noted that Superior Foods’ sales rose 4.6 per cent to $1.26 billion with the business renewing major contracts in the year representing about 20 per cent of its revenue base.
Liquor sales climbed 3.4 per cent to $5.3 billion with growth accelerating in the second half and as consumer preference for the independents’ differentiated offer led to further market share gains.
Metcash’s hardware sales improved 2.4 per cent to $3.6 billion, reflecting the impacts of the acquisitions and store growth in Total Tools.
Total sales in the combined IHG and Total Tools retail networks inched 0.5 per cent higher to $4.5 billion.
“Earlier this month, the company announced that it was further strengthening the Hardware pillar by merging the IHG and Total Tools businesses to form the Total Tools and Hardware Group,” said Doug Jones, Metcash Group CEO.
“The merger positions Hardware with a clear operating model alongside food and liquor. Importantly, it allows all of our business to be uniquely and better placed to work with independents, franchisees and our corporate-owned retail stores, and to better support the communities they serve.”
“Our strategy of ‘winning with independents’ focuses on continuing to build on this platform and on moving through the value chain, closer to shoppers. This is expected to deliver further diversification of our revenue streams and position the Group with opportunities for profitable growth.”
The group’s attributable net profit increased 10.1 per cent to $283.3 million.
Moving forward, Metcash noted it witnessed revenue for the first seven weeks up 4.7 per cent from the year-ago period, underpinned by growth in all pillars.
Food sales surged 17 per cent while liquor and hardware sales went up 1.5 per cent and 1.1 per cent, respectively.