Metcash CEO Doug Jones has expressed strong confidence in the group’s ability to compete against dominant supermarket players Woolworths and Coles, as well as discount retailer Aldi, amid intensified price-cutting efforts across the sector.
As Australians continue to feel the pressure of rising living costs, major supermarket chains have increased their promotional activity in an effort to retain customer loyalty. Woolworths and Coles have rolled out aggressive pricing strategies in recent months, while Aldi remains a persistent threat with its value-focused model.
Despite this heightened competition, Metcash has reported positive full-year results. For the year ending 30 April, group sales rose 8.9% to $17.32 billion, and net profit increased 10% to $283.3 million. The group, which supplies over 1,600 independently owned stores under banners like IGA and Foodland, continues to strengthen its position in the market.
Metcash attributes part of its success to strong relationships with suppliers. These partnerships allow the company to respond quickly to pricing changes and maintain competitive offerings. Suppliers see value in supporting independent supermarkets as they offer alternative routes to market beyond the major retailers. Unlike Aldi, which carries a limited range of products, Metcash allows suppliers greater exposure through its broad retail network.
In addition to pricing strategies, Metcash is focusing on overall value. While large chains pour millions into shelf price reductions, Metcash believes customers also care about variety, convenience, and personalised service. The group aims to maintain a small gap in pricing between its stores and the major supermarkets, ensuring shoppers feel they are getting both affordability and quality.
The liquor division also continues to perform well. Now the second-largest in the country by volume, it is benefiting from customers choosing to shop locally rather than visiting large-format outlets. Brands like Cellarbrations and The Bottle-O have seen improved performance, driven by better ranges and more competitive pricing. Metcash recently acquired Steve’s Liquor, expanding its footprint with five stores in Victoria and three in Tasmania.
In hardware, Metcash remains competitive against Bunnings. Sales in this segment grew by 8.3% to $2.68 billion, although earnings declined 10% to $189.3 million due to a softer trading environment. Total Tools, which forms a key part of this division, posted a 0.6% sales increase to $683.2 million. The integration of Metcash’s hardware operations is expected to deliver improved margins and greater efficiency.
The group’s underlying net profit dropped slightly by 2.4% to $275.5 million. However, shareholders were rewarded with a final dividend of 9.5 cents per share, up from 8.5 cents, payable on 27 August. Total annual dividends fell to 18 cents, compared to 19.5 cents the previous year.
In the food category, excluding tobacco, sales surged by 20.8% to $8.8 billion. However, the overall food division, including tobacco, recorded a smaller 11.1% sales increase. Tobacco remains a drag on earnings, as sales have declined by 40% since 2021, impacted by the rise of the illicit tobacco trade. Despite this, earnings from the food business rose 18.2% to $248.4 million.
The liquor division recorded a 3.4% increase in sales to $5.31 billion, although earnings fell 4.7% to $104.1 million due to cost inflation and restructuring expenses.
Looking forward to the next financial year, early trading figures are encouraging. In the first seven weeks of FY2026, group sales increased 4.7%. Food sales were up 2.9%, liquor 1.5%, and hardware 1.1%. While market conditions remain challenging, Metcash believes it is well positioned to adapt and grow.
The group continues to push its strategy of combining competitive pricing with a strong retail network and close supplier collaboration. With Australians more value-conscious than ever, Metcash sees opportunity in offering an alternative to the majors through choice, service, and local presence.
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