Metcash Ltd (ASX: MTS) shares are on the move on Monday morning.
At the time of writing, the ASX 200 stock is up 5% to a 52-week high of $3.90.
This follows the release of the IGA and Total Tools owner's full year results before the market open.
ASX 200 stock jumps on results day
For the 12 months ended 30 April, Metcash reported an 8.9% increase in revenue to $17.3 billion, or 7.2% to $19.5 billion when including charge-through sales.
According to the release, this growth was underpinned by strong performances across its Food, Liquor, and Hardware pillars, with recent acquisitions, including Superior Foods, contributing.
The Food pillar was a standout, with sales (ex-tobacco and including charge-through) up 20.8% to $8.8 billion. This reflects not only the addition of Superior Foods, but also resilient growth across Supermarkets and Campbells & Convenience.
The Liquor pillar posted total sales growth of 3.4% to $5.3 billion. It is continuing to win market share and build on the strength of its IBA banner group. Hardware sales rose 2.4% for the year, driven by acquisitions and new store openings in Total Tools.
Earnings
The ASX 200 stock's group underlying EBIT increased 2.3% to $507.8 million. This was driven entirely by its Food pillar and thanks largely to the acquisition of Superior Foods but supported by a 2.9% lift in Supermarkets and Campbells & Convenience EBIT to $216.1 million.
Liquor EBIT fell 4.7% to $104.1 million as lower wholesale price inflation reduced margins on strategic buying. And Hardware EBIT declined 10.2% to $189.3 million reflecting the impact of subdued trading activity, retail margin pressure, and a significant increase in depreciation and amortisation related primarily to acquisitions.
On the bottom line, underlying profit after tax slipped 2.4% to $275.5 million. Though, this was in line with its guidance range of $273 million to $277 million.
In light of the above, the ASX 200 stock declared a fully franked final dividend of 9.5 cents per share. This brings its total FY 2025 dividends to 18 cents per share (down 10%), which equates to a 72% payout ratio on underlying profit after tax. This is slightly above the company's target payout ratio.
Outlook
Metcash revealed that it has had a solid start to FY 2026, with group sales up 4.7% in the first seven weeks.
Food revenue has increased significantly, benefiting from Superior Foods and growth in Campbells & Convenience. Whereas Supermarkets ex-tobacco continued to post solid growth despite a highly value-conscious consumer environment.
The Liquor pillar has maintained its momentum, with further market share gains recorded in the first quarter and a recent acquisition of Steve's Liquor Warehouse to support growth in Victoria and Tasmania.
Finally, the Hardware pillar continues to recover, with improved trade sales in timber and building supplies, and strong demand in the frame and truss pipeline. Total Tools margins have also continued to improve early in the new financial year.
No guidance has been given for the year ahead.
