Metro Inc. Reports Q2 Profit Up From Last Year

Grocery and drugstore retailer Metro Inc. reported a second-quarter profit of $246.6 million, up from $220.0 million a year earlier.

The company says the profit amounted to $1.16 per diluted share for the 12-week period ended March 14 compared with a profit of 99 cents per share in the same quarter last year.

Metro chief executive Eric La Flèche said the company delivered solid second-quarter results, driven by strong revenue growth and disciplined expense control.

“We are very pleased with the expansion of our discount store network, which continues to fuel food sales growth, as well as with the sustained sales momentum in our pharmacy business,” La Flèche said in a statement.

Sales for the quarter totalled $5.11 billion, up from $4.91 billion a year earlier.

The increase came as food same-store sales rose 1.8 per cent for the quarter. Meanwhile, pharmacy same-store sales were up 5.1 per cent, boosted by a 6.1 per cent increase in prescription drugs and a 2.8 per cent increase in front-store sales.

On an adjusted basis, Metro says it earned $1.11 per diluted share in its latest quarter, up from $1.02 per diluted share a year earlier.

In its outlook, Metro said a strike at its produce distribution centre in Laval, Que., that began on March 30 will have an impact on its third quarter.

La Flèche said the company’s contingency plan is in place and the Quebec stores are now generally well stocked.

“We look forward to a resolution that considers the needs of our employees and customers while ensuring the long-term competitiveness of our company,” he said.

Workers at Metro’s head office and the Laval fruit and vegetable distribution centre have been on strike since March 30. The work stoppage includes about 550 warehouse workers and drivers at the Mérite 1 warehouse in the Rivière-des-Prairies neighbourhood of Montreal.

The union is demanding a larger pay increase. The previous agreement provided for 11 per cent increases between 2019 and 2025.