The wholesaler, which also owns IGA, Total Tools and Mitre 10, increased its statutory profit after tax by 10.1 per cent to $283.3 million, led by strong performance across its food pillar.
The improved result came despite sluggish hardware trade and a 20 per cent decrease in tobacco sales as the illicit tobacco market chipped away at demand.
At the same time, underlying profit after tax decreased 2.4 per cent to $275.5 million, due to lower earnings in the hardware and liquor pillars, higher finance costs and higher depreciation and amortisation linked with its acquisitions.
Metcash's performance was supported by strategy execution and disciplined operational performance, group chief executive officer Doug Jones said.
"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," he said.
"The food business grew strongly with revenue 11 per cent and earnings up 18 per cent including the acquisition of Superior Foods in June last year."
A flagged $10 million capital expenditure earmarked for the acquisition was no longer needed, Mr Jones said.
Group revenue increased 8.9 per cent to $17.3 billion, and group underlying earnings before interest and tax rose 2.3 per cent to 507.8 million.
Metcash posted underlying earnings per share of 25.1 cents, and will deliver a final dividend of 9.5 cents per share, taking total dividends for the financial year to 18 cents per share, fully franked.
The total dividend represents a payout ratio of 74 per cent of underlying profit after tax, topping the company's target payout ratio of 70 per cent.
Wholesale price inflation continued to moderate and was 1.4 per cent for the period, down from 4.8 per cent in the 2024 financial year.
The IGA network continued to perform well, accounting for roughly 60 per cent of group food sales, as Metcash opened 22 new stores.
Its liquor pillar continued to grow sales and market share, but earnings before interest and tax fell $5.1 million to $104.1 million due to the impact of lower wholesale price inflation on strategic buying.
Trading activity in hardware continued to be subdued, but there were signs of improvement after an uptick in trade in the fourth quarter.
"Pleasingly, the improved sales momentum has continued into FY26," Mr Jones said.
Total sector sales increased 2.4 per cent, thanks to acquisitions in Independent Hardware Group and new Total Tools stores.
Metcash will merge the two hardware brands to further strengthen its position, the group announced earlier in June.
Investors responded positively to the results, pushing Metcash shares 2.4 per cent higher to $3.79 per share by 11am AEST.
11°C