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Metro sees profits shoot up amid surging same-store sales growth

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Metro Inc. said Wednesday that its earnings surged in its latest results, fuelled by higher same-store sales and a favourable tax ruling, as the company faces calls from striking workers to share more of those gains.

In the quarter ended July 1, the grocery and drugstore retailer said net earnings skyrocketed 26 per cent to $346.7 million from $275 million a year earlier.

Montreal-based Metro said the rise in third quarter profits are due in part to a tax benefit after the Canada Revenue Agency granted capital losses to the company that had previously been disallowed.

Nonetheless, adjusted net earnings rose 11 per cent to $314.8 million last quarter from $283.8 million the year before.

The report of rising profits come as 3,700 Metro workers from 27 Greater Toronto Area stores continue to strike as they push for higher pay and other improvements.

Unifor national president Lana Payne said in a statement that the company’s profits show Metro has “no excuses” not to meet worker demands, as the union called for the company to come back to the table with an improved wage offer.

“Frontline grocery workers deserve their fair share of Metro’s record profits,” Unifor spokesman Paul Whyte in a statement.

“Members simply cannot accept an agreement that leaves them scrambling to make ends meet.”

Workers walked off the job July 29 after rejecting a tentative agreement the union bargaining committee had reached with Metro, despite Payne hailing the proposed deal as a “milestone agreement” that addressed core member concerns.

Metro chief executive Eric La Flèche expressed his frustration about the decision on the earnings call Wednesday.

“We are clearly disappointed, given that we have worked constructively with the union and the employees bargaining committee to reach a very good agreement providing significant pay increases that they unanimously recommended to the employees,” he said.

“We remain committed to the bargaining process and look forward to a resolution and the reopening of our stores as soon as possible, while ensuring the long term competitiveness of our company.”

Metro noted in its results that a one-week strike at a Toronto distribution centre in the third quarter last year led to $5.3 million in direct costs that quarter.

Overall results for the third quarter this year showed sales increased 10 per cent to $6.43 billion from $5.87 billion a year prior, boosted by same-store sales growth of nine per cent.

Adjusted fully diluted net earnings leaped 14 per cent to $1.35 per share from $1.18 per share, while analysts had expected $1.29 per share, according to financial markets data firm Refinitiv.

The results were “very strong” said RBC Capital Markets analyst Irene Nattel in a note. She said the better-than-expected results came from a combination of merchandising strategies, good cost containment and an ongoing shift to discount channels.

The company’s gross margin on food was down slightly from last year as the company absorbed more food inflation costs, and as customers continue to shift to discount brands, said La Flèche.

“There are limits to what we can charge to our customers.”

The company said in its outlook that it is seeing some moderation in food inflation, but that it remains elevated compared with pre-pandemic levels.

This report by The Canadian Press was first published Aug. 9, 2023.

 

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Carry On Canadian Business. Carry On!

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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