Metro’s profit, sales up despite labour conflict and mild cold season
MONTREAL—Against headwinds from a labour conflict and a mild cold and flu season, grocery and pharmacy retailer Metro Inc. posted higher firstquarter sales and profit on Tuesday compared with a year ago.
Although pandemic restrictions limited in-store foot traffic at the company’s supermarkets, same-store food sales climbed 10 per cent as shoppers bought more groceries with each visit or online order, the company said.
But pharmacy same-store sales edged up only slightly, dragged down by a 3.8 per cent drop in front-store sales as COVID-19 measures reduced instore traffic as well as demand for cough and cold products.
“When you have a cold or a flu you tend to go to the drugstore to pick up either a prescription and/or some (over
the-counter medicine) and, while you’re at it, why not buy some gum,” Metro president and CEO Eric La Flèche said during an investor call.
The quarter was also impacted by a labour conflict at a Jean Coutu distribution centre in Quebec, which the company said had a dampening effect on overall sales. “We are now back to normal operating conditions in the distribution centre,” La Flèche told investors.
In reporting its results, the grocery and pharmacy retailer raised its quarterly dividend to 25 cents per share, up from 22.5 cents. Metro said it earned $191.2 million or 76 cents per diluted share for its first quarter, up from a profit of $170.2 million or 67 cents per diluted share in the same quarter a year earlier.
Sales for the 12-week period ended Dec. 19 totalled $4.28 billion, up from $4.03 billion a year earlier. On an adjusted basis, Metro said it earned 79 cents per share for the quarter, up from an adjusted profit of 71 cents per share a year ago.