Grocery retailer Metro reports Q2 profits up 10 per cent from year ago, as sales rise

Metro Inc. says its profits rose 10.4 per cent to $218.8 million in its latest quarter, up from $198.1 million in the same quarter last year, as its sales rose 6.6 per cent.

The grocery and drugstore retailer said Wednesday the profit amounted to 93 cents per diluted share for the 12-week period ended March 11, up from 82 cents per diluted share a year earlier.

Sales in what was the company's second quarter totalled $4.55 billion, up from $4.27 billion in the same quarter last year.

The increase in sales came as food same-store sales rose 5.8 per cent compared with a year earlier, while pharmacy same-store sales gained 7.3 per cent.

On an adjusted basis, Metro said it earned 96 cents per diluted share, up from 84 cents per diluted share a year earlier.

Analysts on average had expected an adjusted profit of 94 cents per share, according to financial markets data firm Refinitiv.

"Our teams continued to deliver value to our customers in the current high food inflation environment with competitive everyday prices, growing private label sales and effective promotional strategies," Metro CEO Eric La Fleche said in a statement.

"We will continue to invest in our people, our retail network and the modernization of our supply chain, and we are well-positioned to achieve our long-term growth objectives."

In its outlook, the company said it remains focused on offering quality products at competitive prices as higher than normal inflation and market challenges persist.

"We are seeing some moderation in food inflation, although it is still elevated compared to pre-pandemic levels," Metro said in a statement.

The company will be launching its new loyalty program, Moi, later this spring, La Fleche said. Metro currently allows shoppers to collect Air Miles rewards.

The move comes less than a year after Sobeys partnered with Scotiabank and Cineplex on the Scene Plus loyalty program, dropping Air Miles from its stores.

This report by The Canadian Press was first published April 19, 2023.