Metcash is celebrating “continued outperformance in liquor” in its financial results for the year ended 30 April 2025.

Group revenue increased 7.2% to $19.5billion, with Metcash’s liquor pillar delivering results that the company described as strong sales growth and market share gains, underpinned by “shopper preference for the convenience and quality of the independents’ differentiated offer”.

However, liquor EBITDA was 1.8% lower at $123.5 million and EBIT declined 4.7% to $104.1 million, which Metcash said reflected the impact of lower wholesale price inflation on strategic buying.

There were also restructuring costs of $300,000 for the division.

Wholesale sales to independent retail and contract customers increased 3.8%, while on-premise sales returned to growth in the second half. There was strong growth across all major IBA brands including Cellarbrations, The Bottle-O, IGA Liquor and Porters.

Group CEO Doug Jones said: “In liquor, the independent network continued to outperform the market, led by our IBA banner group.

“An acceleration of sales in the second half built on the strong first half performance. Further market share gains were achieved in the year.

“The liquor business enjoys a strong market position underpinned by a healthy and confident network that is positioned for continued growth.”

The highest growth category was beer, which Metcash said reflected continued shopper focus on value together with the
successful execution of Metcash’s new wholesale distribution agreement with Lion in South Australia. The new agreement with Lion will deliver $100 million per annum.

During an investor and media call, Jones said cost-conscious shoppers were increasingly choosing their local liquor stores over larger chains.

“For example, in liquor, the convenience format really resonates with our shoppers,” he said.

“And what liquor customers are saying, essentially is that they’re not having to bypass their local liquor stores as the quality of the offer improves, as the ranging is tailored to their local needs, and as the price gap comes down.

Metcash Liquor preliminary results for FY26

In its trading outlook, Metcash said liquor shoppers continued to value the local convenience and quality of the independents’ offer which was supporting growth in a challenging market.

“Sales to retail and contract customers in the first seven weeks are against a very strong comparative period,” the group said.

“Importantly, further market share gains were achieved in the quarter ended 31 May 2025. The recovery in sales to on-premise customers continued in early FY26. On 20 June 2025, the business entered into a binding agreement to acquire the Steve’s Liquor Warehouse group that includes five retail stores in Victoria and three in Tasmania.”

Total liquor sales in the first seven weeks of FY26 increased 1.5%, with wholesale sales to IBA retail and contract customers up 1.3%. Wholesale sales to on-premise customers increased 2.7%.

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