Metcash Profit Up: Independents Gain Market Share
- Metcash, the wholesaler for IGA and Foodland supermarkets, reported a 10% increase in after-tax profit, reaching $283.3 million.
- The company's overall revenue increased by nearly 9% to $17.3 billion for the year ending April 30.
- Despite a market driven by price cuts, Metcash CEO Doug Jones said the company's food and liquor divisions have shown resilience.
Metcash‘s after-tax profit soared by 10%, a triumph driven by the robust performance of autonomous grocers and strong food sales.This impressive financial result showcases Metcash’s powerful position as a leading wholesaler, notably with its acquisition of Superior Foods. While liquor sales also displayed upward momentum, the hardware sector experienced a downturn. CEO Doug Jones confidently highlights Metcash’s competitive prowess in the market. Explore how News Directory 3 reports on IGA and Foodland‘s success. Discover what’s next …
Metcash Profit Jumps Amid Independent Grocer Strength
Updated June 23, 2025
Metcash, the wholesaler for IGA and Foodland supermarkets, reported a 10% increase in after-tax profit, reaching $283.3 million. This surge is attributed to robust food sales and the strong performance of independent grocers.
The company’s overall revenue increased by nearly 9% to $17.3 billion for the year ending April 30. underlying earnings before interest and tax rose 2.3% to $507.8 million, aligning with previous forecasts. Though, underlying profit after tax decreased by 2.4% to $275.5 million due to increased finance costs and depreciation from recent acquisitions.
Despite a market driven by price cuts, Metcash CEO Doug Jones said the company’s food and liquor divisions have shown resilience. “We absolutely are able to compete with them,” Jones said, referring to competition with major supermarket chains like Coles and Woolworths. He added, “Choice is the primary ingredient of healthy competition, and we’re confident in our ability to offer that.”
Foot traffic remained steady across Metcash’s network of 2,457 independent food stores. Food earnings increased by 18% to $248.4 million, with revenue climbing 11%. This growth was supported by Metcash’s $10 million acquisition of superior Foods and the opening of 22 new IGA stores,even though 31 stores closed during the same period.
Liquor sales grew by 3.4% to $5.3 billion, with brands like Cellarbrations and The Bottle-O attracting more customers. However, earnings in the liquor division fell 4.7% to $104.1 million, impacted by easing wholesale price inflation and restructuring costs.
Jones noted increasing consumer confidence in local liquor outlets: “When the quality of the offer improves, the ranging is tailored to local needs, and the price gap comes down.”
Hardware remained the weakest area, with earnings falling 10% to $189.3 million due to subdued trade. While sales rose 2.4% to $2.68 billion, the segment was