In This Article:
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Total Sales: $4.9 billion, up 5.5% year-over-year.
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Food Sales: Increased by 5.2%.
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Same-Store Sales (Food): Up 3.9% after adjusting for calendar shift.
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Same-Store Sales (Pharmacy): Increased by 7%.
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Gross Margin: 20% of sales, up from 19.9% last year.
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Operating Expenses: $521.3 million, representing 10.6% of sales.
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EBITDA: $461 million, up 5% year-over-year.
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Depreciation and Amortization: $136.1 million, up 5.1%.
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Net Financial Costs: $33.4 million, down from $34.1 million last year.
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Effective Tax Rate: 24.5%, down from 26.5% last year.
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Adjusted Net Earnings: $226.6 million, up 9.8% year-over-year.
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Adjusted EPS: $1.02, up 12.1% from $0.91 last year.
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Store Expansion: Net increase of 18,100 square feet in food retail network.
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Online Sales Growth: Increased by 26% for the quarter.
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Prescription Sales: Up 7.8%.
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Share Repurchase: 2.849 million shares for $264 million.
Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Metro Inc (MTRAF) reported a 5.5% increase in total sales, reaching $4.9 billion in the second quarter.
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The company achieved a 9.8% increase in adjusted net earnings, amounting to $226.6 million.
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Online sales grew by 26% for the quarter, driven by the expansion of click and collect services and third-party marketplaces.
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Pharmacy division recorded solid same-store sales growth of 7%, with prescription sales up 7.8%.
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Metro Inc (MTRAF) maintained a strong focus on local and Canadian products, which outpaced total sales growth.
Negative Points
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Operating expenses were $521.3 million, representing 10.6% of sales, slightly down from 10.7% last year, but still a significant cost factor.
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Energy costs in Ontario increased due to cold weather, impacting overall expenses.
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The company faced increased fees related to online partnerships, affecting operating margins.
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Depreciation and amortization expenses rose by 5.1% due to investments in supply chain and automation technology.
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The economic environment remains uncertain, with potential impacts from tariffs and counter tariffs on consumer behavior and business operations.
Q & A Highlights
Q: How has consumer behavior changed in response to recent tariffs, and what is Metro's outlook for the rest of the fiscal year? A: Eric La Fleche, President & CEO, stated that consumer behavior has not significantly changed, with a continued focus on value. The macroeconomic environment remains uncertain, but as a retailer of essential goods, Metro is well-positioned to continue growing despite volatility.