Convenience, quality and value drive Metcash sales growth

Metcash has delivered its financial results for the half-year ended 31 October 2025, with the group saying its diversified channel strategy has led to sales growth in a more difficult market.

Total liquor sales increased by 1.4 per cent to $2.6bn, which reflects Metcash’s market share gains in Australian packaged liquor and an acceleration in wholesale sales to on-premise customers.

Liquor EBITDA was 4.8 per cent lower at $55m and EBIT declined 11.4 per cent to $43.5m reflecting the contribution from the business’ positive trading performance being more than offset by the impact of one-off strategy costs of $1.5m, lower wholesale price inflation on strategic buying and higher labour costs. 

Group CEO, Doug Jones said: “The business has delivered solid results in tough trading conditions, supported by disciplined operational performance and the successful execution of our strategy.

“Importantly, we’ve maintained good momentum in our core business, and our independent networks remain healthy and confident despite the challenging conditions.

“In Liquor, the benefits of our diversified channel strategy led to sales growth in a more difficult market.  Shopper preference for the convenience, quality and value in the independents’ offer underpinned further market share gains in the half.”

Metcash’s digital B2B marketplace, Sorted, saw rapid expansion in the half, and now accounts for around $4bn of annualised sales. Sorted was extended into liquor at the end of the half and is now available in Western Australia, South Australia, Victoria, Tasmania and the Northern Territory, and will be in Queensland and New South Wales from January 2026. Metcash said it expects that around 80 per cent of all customer orders will be through the Sorted platform, helping to drive further growth.

Jones said: “[Sorted] is expected to reach over $6bn of annualised sales in early 2026, representing around 30 per cent of Group revenue (including charge-through).  Sorted has delivered a significant and material modernisation and transformation of our wholesale business and supports accelerated growth in our core and adjacent markets.”

He added: “We have made good progress in our strategy of extending through the value chain and ‘winning with independents’. This provides opportunities to expand our addressable markets, at attractive margins.  

“Sales growth was achieved in all our revenue models in the half, with the Food and Liquor Out of Home and Franchisor higher margin models having the strongest growth. 

“On the back of decisive action taken over the last five years to both improve the core of our business and to position the Group for future growth, Metcash remains well set for ongoing success with a stronger, more diversified and more resilient business, and with significant opportunities for accelerating growth.”

The first half also included renewal of the Liquor Stax contract for a further 10 years (~$350m sales p.a.) and the Redcape Group (54 stores) became a member of the IBA retail banner group.  The business also completed the acquisition of Steve’s Liquor Warehouse group in mid-October. 

Metcash also reported its trading for the first four weeks of the second-half of the year, with liquor sales flat in a more challenging market “reflecting the success of the business’ multi-channel strategy. Wholesale sales to on-premise customers accelerated, underpinned by further recovery in this segment. Wholesale sales to IBA banner and contract customers in Australia reflect a more subdued market”.

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