FY26 Result - MetCASH

Research evidence excerpt

FY26 Result - MetCASH

Australia | Consumer Staples

Metcash EquityJuneResearch22, 2026

COMPANY UPDATEFY26 Result - MetCASH

Result pre-announced, so focus was on the outlook. Strong start to FY27 RATING BUY

in Hardware against challenging conditions was the highlight & while Food PRICE AUD3.12^

was slightly weaker than expected, sales momentum improved after a soft PRICE TARGET | % TO PT AUD3.50 | +12%

May. Cashflow was very strong for the 3rd year running & MTS is proving 52W HIGH-LOW AUD4.26 - AUD2.63

to be one of the best cash generators in our coverage. Buy retained with FLOAT (%) | ADV MM (USD) 94.0% | 11.29

tobacco headwind done, food inflation tailwind likely & material upside to MARKET CAP AUD3.4B | $2.4B

mid cycle Hardware margins. TICKER MTS AU

^Prior trading day's closing price unless otherwise

noted.

NPAT down 2% (2H up 1%), consistent with pre-announcement - Group underlying EBIT of

$503.7m at higher end of $501-505m guidance range. 9.5¢ final div (JEFe: 9.0¢), with 74%

payout, slightly above target. FY (Apr) CHANGE TO JEFe JEF vs CONS

2027 2028 2027 2028

Balance sheet healthy & cash realisation strong again - 1.0x leverage at low end of target REV NM <1% -2% -2%

range (1.0-1.75x). Op cashflow of $558m (JEFe: $519m) grew +4% & implied 106% realisation. EPS NA NA -9% -15%

3-yr avg CRR of 104% well above 80-90% target, and MTS has delivered >100% CRR for

3 consecutive yrs. Inventory days declined from 33.0 days to 31.8 days in FY27 & avg 2027 (AUD) 1Half 2Half FY

working cap days down from 13.2 to 12.7 days. Management will continue to target working EPS 0.12 0.13 0.25

cap opportunities but 80-90% target reiterated. DRP suspended given balance sheet, but PREV

participation low after discount removed last year (Fig 1).