Canada · Delayed Price · Currency is CAD Metro Earnings Call Transcripts
Fiscal Year 2026
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Q3 results were heavily impacted by a labor strike, leading to lower food same-store sales and margins, though pharmacy and online segments showed resilience. Network optimization and a bakery sale are expected to drive future earnings, while the labor conflict continues to weigh on outlook.
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Q2 saw 4.1% sales growth to CAD 5.1B, with strong pharmacy and discount banner performance, and adjusted EPS up 8.8%. Gross margin improved, online sales rose nearly 20%, and a Québec strike is expected to impact Q3.
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Q1 saw 3.3% sales growth and 5.5% adjusted EPS growth, despite a costly freezer disruption. Food and pharmacy segments both posted positive same-store sales, with discount and online channels outperforming. Dividend was raised 10.1% and share buybacks continued.
Fiscal Year 2025
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Q4 saw 3.4% sales growth and 8.6% higher adjusted net earnings, despite a CAD 22.5 million after-tax impact from a Toronto freezer shutdown. Discount and pharmacy segments led growth, with strong online and private label performance. FY 2026 guidance includes higher CapEx and continued store expansion.
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Q3 saw 3.3% sales growth, 5.7% EBITDA growth, and a 12.6% rise in adjusted EPS, with strong pharmacy and discount banner performance. Gross margin and productivity improved, while inflation and tariffs remain key risks. Online sales and store expansions contributed to growth.
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Second quarter sales rose 5.5% to $4.9 billion, with strong growth in both food and pharmacy. Adjusted net earnings increased 9.8% and EPS grew 12.1%, while online sales surged 26%. The company maintains its 8%-10% EPS growth target amid ongoing economic volatility.
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First quarter sales rose 2.9% to CAD 5.12 billion, with adjusted net earnings up 4.4% and EPS up 7.8%. Online sales grew 18%, and the company maintained its 8%-10% EPS growth target, while dividend and share repurchases continued.
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The meeting reviewed strong financial results, supply chain modernization, and expansion of loyalty programs. All board and auditor appointments were approved, executive compensation changes adopted, and a shareholder proposal on auditor tenure was rejected. Strategic plans focus on growth, efficiency, and corporate responsibility.
Fiscal Year 2024
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Q4 sales reached CAD 4.94 billion, with strong same-store growth in both food and pharmacy. Gross margin and EBITDA improved, and the supply chain modernization was completed. Fiscal 2024 met guidance, with gradual profit growth and expanded share buybacks expected in 2025.
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Sales rose 3.5% to CAD 6.65B, with stable gross margin and strong discount and pharmacy growth. Adjusted net earnings fell 3.1% to CAD 305M, while automation investments and loyalty program expansion drove operational improvements. Market share and online sales increased.