Grocery and drugstore retailer Metro reports Q2 profit and sales up from year ago

Photo: The Canadian Press

A customer holds a shopping basket at a Metro grocery store In Toronto on Friday, Feb. 2, 2024.  

Metro Inc. reported a second-quarter profit of $220.0 million, up from $187.1 million a year ago, as its sales rose 5.5 per cent.

The grocery and drugstore retailer said Wednesday its profit amounted to 99 cents per diluted share for the 12-week period ended March 15, up from 83 cents per diluted share a year earlier.

"We delivered solid results in the second quarter, driven by strong sales growth in both food and pharmacy as our teams continue to focus on bringing value to our customers across our different banners," Metro chief executive Eric La Flèche said in a statement.

"Despite the current uncertain economic environment, we are confident that our sustained investments in our retail networks and supply chain combined with strong execution will continue to fuel our growth."

In its outlook, Metro said it faces an uncertain economic environment.

To date, it said that recent tariffs and counter-tariffs have not had a material impact on its business, however it added that the situation remains volatile.

Sales for Metro's second quarter totalled $4.91 billion, up from $4.66 billion in the same quarter last year, helped by the transfer of two significant pre-Christmas shopping days to the second quarter.

Food same-store sales were up 5.3 per cent in the quarter and up 3.9 per cent after adjusting for the Christmas shift.

Pharmacy same-store sales were up 7.0 per cent, helped by a 7.8 per cent increase for prescription drugs and a 5.3 per cent increase in front-store sales. Front-store sales were up 3.7 per cent after adjusting for the Christmas shift.

On an adjusted basis, Metro says it earned $1.02 per diluted share in its latest quarter, up from an adjusted profit of 91 cents per diluted share a year earlier.