MONTREAL Metro Inc. reported a substantial increase in its second-quarter profit, reaching $220.0 million compared to $187.1 million for the same period last year. This represents a notable gain as the retailer's sales rose by 5.5 percent during the 12-week period that ended on March 15. The company's earnings translated to 99 cents per diluted share, an increase from 83 cents per diluted share in the previous year.
Metro’s chief executive, Eric La Flèche, commented on the company's positive performance, stating, "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." Despite the unpredictable economic climate, La Flèche expressed confidence in the company’s ongoing investments in retail networks and supply chain management, which he believes will support continued growth.
Looking ahead, Metro has acknowledged the uncertain economic landscape and its potential implications. The company mentioned that, so far, recent tariffs and counter-tariffs have not significantly impacted its business, although it also noted that the situation is still evolving and could change.
In terms of financial specifics, Metro managed to generate $4.91 billion in sales for its second quarter, an increase from $4.66 billion year-over-year. This growth was aided by the transfer of two significant shopping days leading up to Christmas into the second quarter, which positively influenced sales figures.
When breaking down sales by department, Metro observed a 5.3 percent increase in food same-store sales for the quarter. Adjusting for the Christmas shopping shift, the growth was slightly lower at 3.9 percent. Meanwhile, pharmacy same-store sales surged by 7.0 percent, supported by a 7.8 percent increase in prescription drug sales and a 5.3 percent rise in front-store sales. After accounting for the Christmas shift, front-store sales showed a more modest growth of 3.7 percent.
In terms of adjusted earnings, Metro reported an impressive $1.02 per diluted share, which is an increase compared to an adjusted profit of 91 cents per diluted share recorded in the same quarter of the previous year. This adjusted figure highlights the company’s robust performance in the marketplace as it continues to adapt to economic challenges.
These results underscore Metro Inc.'s resilience and capability to achieve growth amidst fluctuating economic conditions. The retailer's strategic focus on enhancing customer value through its various banners is evidently paying off, with both food and pharmacy sectors contributing significantly to its sales increase. The outlook remains cautiously optimistic as Metro navigates through the complexities of the current economic environment.
