In a trading update this week, Metcash confirmed it expects to deliver underlying profit after tax of $268 million to $270 million for the fiscal year ended April 30. 

Estimated revenue for its liquor division will be $5.4 billion, up 1% versus FY25. Metcash listed highlights for its liquor division, including:

• Metcash-supplied independents continuing to gain market share
• Growth supported by multi-channel strategy and convenience offering
• On-premise recovery supported second half momentum
• EBIT margin returned to long-term levels in second half.

Australia and New Zealand’s leading wholesale distribution and marketing company said the result reflected resilience across its portfolio in a challenging market environment, including impacts of the conflict in the Middle East and cost-of-living pressures.

According to the company, there has been no material impact on FY26 earnings from increased freight or product costs. It said impacts had mostly been offset through pricing mechanisms and active management.

Metcash Group CEO Doug Jones said: “We have delivered a solid result supported by the resilience of our food and liquor businesses, our diversified portfolio and disciplined execution.”

Jones told The Australian: “I think in both food and liquor, what we always have to remind ourselves is that we are a wholesaler with a very resilient business model and we have the opportunity to sell to a very wide range of customers including IGA supermarket owners and other banner owners and our scale really makes a difference to them.

“And that market is massive, and it is thriving and it is filled with great [retail] operators who do a wonderful job meeting the needs of their consumers.”

Analysts described the update as a “solid outcome” and broadly in line with market expectations. Metcash shares rose 6.5% to $2.92 following the announcement.

The company is targeting cost savings of around $25 million in cost saving for FY27, including staff costs of $15 million (primarily from hardware and tools) and non-trade procurement savings of $10 million.