Metcash’s FY26 EBIT of $504 million, declined by 1%. Additional detail about its trading conditions early FY27e look promising. However, the company will have a number of hurdles that result in only 1% EBIT growth for FY27e on our estimates. The improvement in sales trends for Metcash will come from tobacco, which is low margin. Recent investments in retail stores and IT systems will lift depreciation and interest costs.