Metcash has released its financial year 2025 results today, reporting that total liquor sales increased 3.4 per cent to $5.3bn, as independents continued to outperform the market led by the IBA network.
Sales growth accelerated in the second half, which Metcash says was “underpinned by continued shopper preference for the convenience and quality of the independents’ differentiated offer”. There were further promising signs for the market in the second half, which saw on-premise sales return to growth.
There was also 3.8 per cent growth in wholesale sales to independent retail and contract customers, and Metcash also reported strong growth across all major IBA brands including Cellarbrations, The Bottle-O, IGA Liquor and Porters.
Speaking about the Metcash liquor business, Group CEO Doug Jones said: “In Liquor, the independent network continued to outperform the market, led by our IBA banner group. An acceleration of sales in the second half built on the strong first half performance. Further market share gains were achieved in the year.
“The Liquor business enjoys a strong market position underpinned by a healthy and confident network that is positioned for continued growth.”
The highest growth category was beer, which Metcash said reflected continued shopper focus on value together with the successful execution of its new wholesale distribution agreement with Lion in South Australia. The group did report gains in the year across all liquor categories.
Liquor EBITDA was down 1.8 per cent to $123.5, with EBIT also declining, down 4.7 per cent to $104.1m.
For the group overall, revenue increased 8.9 per cent to $17.3bn, and Group underlying EBIT increased 2.3 per cent to $507.8m, but underlying profit after tax decreased 2.4 per cent to $275.5m.
Speaking about the overall group result, Jones said: “The business again performed well supported by the successful execution of our strategy and disciplined operational performance.
“The increased diversification and resilience of the Group was a key driver of sales and earnings growth in the face of challenging conditions in all pillars, particularly in the Hardware pillar where trade activity remained subdued.
The quality and competitiveness of the independents’ differentiated offer continues to resonate with shoppers, and this again helped underpin sales growth in all pillars.”
He added: “Our strategy of ‘winning with independents’ focuses on continuing to build on this platform and on moving through the value chain, closer to shoppers. This is expected to deliver further diversification of our revenue streams and position the Group with opportunities for profitable growth.”
In a trading update for the financial so far Metcash reported a positive start with Group revenue for the first seven weeks up 4.7 per cent helped by growth in all pillars.
For the liquor business, Metcash reported that despite a challenging market, independent liquor retailers continue to attract shoppers with their local convenience and quality offerings, helping to drive growth.
While early FY26 sales to retail and contract customers faced tough comparisons, the business recorded further market share gains in the quarter ending 31 May 2025. The recovery in on-premise sales also continued into the new financial year.
In a strategic move to strengthen its footprint, the business announced on 20 June 2025 that it had entered into a binding agreement to acquire the Steve’s Liquor Warehouse group, adding five stores in Victoria and three in Tasmania to its network.