Metcash (MTS.AX) Reports FY26 Profit Drop, Suspends DRP; Shares Decline

Metcash (MTS.AX) shares fell 7.5% on June 22, 2026, after the Australian wholesale distributor reported a 6.6% decline in fiscal year 2026 net profit and suspended its Dividend Reinvestment Plan (DRP). The company cited a challenging retail environment affecting consumer spending. For the fiscal year ended April 30, 2026, Metcash posted a net profit after tax of A$250.7 million, down from A$268.4 million in the prior year. Underlying net profit also decreased 7.3% to A$251.7 million. Despite the profit dip, group sales for the first seven weeks of FY27 increased 1.8%, driven by growth across its Food, Liquor, and Hardware segments. The board declared a final dividend of A$0.11 per share but suspended the DRP for this dividend, aiming to reduce the share count and enhance shareholder returns amidst cautious consumer sentiment and inflationary pressures.