Metro chief executive Eric La Flèche said the grocer is poised for growth in 2025 as it exits what he calls a “transition year.”
The company raised its dividend and reported a first-quarter profit of $259.5 million, up from a profit of $228.5 million in the same quarter last year.
Speaking at Metro’s annual general meeting, La Flèche said Metro plans to reap the benefits of recent investments in its supply chain that wrapped up in 2024, and to continue pursuing customer loyalty after expanding its Moi rewards program last year into Ontario.
“We’re in a good position to pursue growth and expansion of this retail network in the years to come,” he said in French.
La Flèche said Metro plans to open 12 new stores in 2025, most of them being discount stores, which he said continue to see higher sales growth than conventional banners.
The last year brought a “return to normalcy in food inflation,” he said, but “we’re still aware that things remain very expensive.”
The grocery and drugstore retailer says it will now pay a quarterly dividend of 37 cents per share, up from 33.5 cents per share.
The increased payment to shareholders came as Metro reported a profit of $1.16 per diluted share for the 12-week period ended Dec. 21, up from 99 cents per diluted share a year earlier.
Sales in the quarter totalled $5.12 billion, up from $4.97 billion in the same quarter last year.
Food same-store sales were up one per cent compared with a year earlier and up 2.4 per cent after adjusting for a shift of two significant pre-Christmas shopping days to the second quarter.
Pharmacy same-store sales were up 5.1 per cent with a 7.3 per cent increase in prescription drugs. Front-store same-store sales were up 0.5 per cent compared with a year ago and up 1.9 per cent after adjusting for the Christmas shift.
On adjusted basis, Metro says it earned $1.10 per diluted share in its latest quarter compared with an adjusted profit of $1.02 per diluted share in the same quarter last year.
“We are pleased with our first-quarter results which were driven by solid revenue growth and good expense control,” La Flèche said in a statement.
“Our commercial programs continue to resonate with customers, aided by the successful launch of our Moi Rewards program in Ontario this fall, leading to increased traffic and tonnage.”
This report by The Canadian Press was first published Jan. 28, 2025.
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