Australia’s Metcash jumps on hardware business consolidation, strong FY earnings

Published 10/06/2025, 05:08
© Reuters.

Investing.com-- Shares in Metcash Ltd (ASX:MTS) climbed to an eight-month high on Tuesday after the company announced the merger of its Independent (LON:IOG) Hardware Group (IHG) and Total (EPA:TTEF) Tools Holdings to form a unified hardware division, alongside better-than-expected FY25 earnings.

The new Total Tools and Hardware Group will combine brands like Mitre 10, Home Hardware, and Total Tools under CEO Scott Marshall, aiming to streamline operations and capitalize on growth opportunities in trade and DIY markets, the company said in a statement.

Metcash cited strategic alignment, cost synergies, and shared customer bases as key drivers.

The company also said it expects underlying profit after tax of A$273–A$277 million for FY25, slightly above consensus estimates of $272 million.

Sydney-listed Metcash shares rose 5% to A$3.56, their highest level since mid-October 2024.

Group CEO Doug Jones said the merger, planned since Metcash acquired Total Tools in 2020, strengthens resilience amid current market conditions. Richard Murray, outgoing Total Tools CEO, will depart after overseeing the brand’s expansion.

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