Latest news with #EricLaFlèche
Toronto Star
4 days ago
- Business
- Toronto Star
Buy Canadian shopping trend starting to lose some steam: Metro CEO
Consumers are still seeking local products, but executives at one of Canada's biggest grocers say the buy Canadian movement is starting to lose some steam. 'It's decelerating somewhat,' Metro Inc. chief executive Eric La Flèche told analysts during a third-quarter earnings conference call on Wednesday.
Yahoo
4 days ago
- Business
- Yahoo
Metro navigates tariff headwinds with supplier deals, posts 9% profit growth
Tariffs and counter tariffs are adding pressure to Metro Inc.'s costs, with 20 per cent of vendor price increase requests being tariff related, but the grocer says it is containing the impact by negotiating with suppliers and sourcing from other countries. 'We negotiate hard to minimize the impact on our consumers in this environment where everybody's more price sensitive,' chief executive Eric La Flèche said on the company's third-quarter earnings call, adding that the effect 'remains manageable' and in line with the current food consumer price index (CPI) of three per cent. He said Metro continues to work with vendors to keep costs down and maintain quality, even as some suppliers have begun imposing increases since Canada's counter tariffs took effect in March. 'We search for other suppliers in other countries just to minimize prices and maintain quality,' he said. 'So, we have been able to navigate and to provide value to our customers despite these tariffs.' La Flèche also said the 'Buy Canadian' trend is 'decelerating,' with consumers still favouring local products but at a reduced pace. Metro posted higher third-quarter profit than a year ago and steady sales growth, driven by gains in its pharmacy and discount food banners, but its results did not exceed analyst expectations. Canada's third-largest grocer had moderate year-over-year improvements across all metrics, including sales, net earnings and gross margin, during its third quarter. RBC Capital Markets analysts said the results were 'consistent with expectations and supportive of (Metro's) hard-earned premium valuation.' They also said the sentiment around the company was 'neutral,' indicating its third-quarter earnings did not surprise industry experts even though it posted better year-over-year results. The grocer said total third-quarter sales were $6.87 billion, up 3.3 per cent from the same quarter a year ago, while net earnings were up nine per cent to $323 million. Operating income was $655.7 million, or 9.5 per cent of sales, up 5.7 per cent from last year. Metro posted an increase in performance across both of its main segments: food and pharmacy. Same-store food sales were up 1.9 per cent from 2024, while online food sales jumped by 14.4 per cent. Pharmacy sales rose 5.5 per cent, with a 6.2 per cent increase in prescription drug sales compared to a year ago. Front-store sales — over-the-counter products such as cosmetics — were up four per cent. Total depreciation and amortization expenses for the third quarter were $184.9 million versus $174 million a year ago. Metro said the increase was due to investments made into its supply chain. 'The increase in depreciation and amortization expense is mainly due to the timing of retail investments and the commissioning of investments in our supply chain, including some automation technology in the pharmacy division and the final phase of our fresh distribution centre in Toronto last summer,' Metro said. It also said a significant portion of Metro's investments into its supply chains was 'behind them' and that the company believes these investments will put them in a better position moving forward. 'The significant investments in the modernization of our supply chain are largely behind us, and we are now focused on realizing efficiency gains,' it said. 'These investments position us well for growth through the expansion of our retail network in the years ahead.' The company said it considers itself to be in a strong financial position. 'We do not anticipate any liquidity risk and consider our financial position at the end of the third quarter of 2025 as very solid. We had an unused authorized revolving credit facility of $594.6 million,' it said. La Flèche said the company was pleased with its performance, pointing out it was marked by solid comparable sales growth in food and pharmacy, and good cost control. 'We successfully opened five new food stores in the quarter, a pace that will continue in the fourth quarter, on track with our plan to accelerate the development of our growing discount banners,' he said in the release. Sale of Canadian products outpacing total sales, says Metro CEO Metro profits were up in pre-Christmas quarter La Flèche also expressed confidence in the investments Metro has made into its supply chain, saying it will continue to fuel the company's growth and 'create long-term shareholder value.'
Yahoo
4 days ago
- Business
- Yahoo
Tariff war accounting for 20% of price-hike requests from suppliers: Metro CEO
Metro ( president and CEO Eric La Flèche says tariffs and counter-tariffs are contributing to food inflation as the grocer continues to receive price increase requests from suppliers. Tariffs account for about 20 per cent of the demands for increased prices Metro is getting from vendors. So far, the grocer has approved price hikes on roughly 3,000 SKUs — individual products or product variations identified by a unique stock keeping unit code. Still, La Flèche says that its food basket inflation is in line with Statistics Canada's Consumer Price Index of 3.1 per cent. 'We'd like it to be two per cent, but we're at three per cent these days,' he said. 'We negotiate as best we can to minimize the impact on our customers in this environment where everybody's searching for value and everybody's more price sensitive,' La Flèche said. For now, he says, the effects remain manageable. Price increases related to the counter-tariffs established in March are also beginning to trickle into health and beauty costs. In response to tariff-related price increases, La Flèche says the company has been searching for other suppliers in other countries to minimize price increases and maintain quality for customers. Metro posted a third-quarter profit of $323 million, up from $296.2 million in the same period a year earlier. Earnings came in at $1.48 per diluted share for the 16 weeks ended July 5, compared with $1.31 per share last year. Quarterly sales reached $6.87 billion, up from $6.65 billion a year ago. Food same-store sales rose 1.9 per cent, while same-store sales in the pharmacy division climbed 5.5 per cent. As at 11:18 a.m. ET Wednesday, Metro shares were trading at $98.80, down 6.82 per cent.
Yahoo
4 days ago
- Business
- Yahoo
Grocery and drugstore retailer Metro reports $323M Q3 profit, up from $296M
MONTREAL — Metro Inc. reported a third-quarter profit of $323.0 million, up from $296.2 million in the same quarter last year. The grocery and drugstore retailer says its profit amounted to $1.48 per diluted share for the 16-week period ended July 5, up from $1.31 per diluted share a year ago. Sales for the quarter totalled $6.87 billion, up from $6.65 billion in the same quarter last year. Metro chief executive Eric La Flèche says the results were marked by solid comparable sales growth in food and pharmacy, and good cost control. Food same-store sales were up 1.9 per cent, while pharmacy same-store sales were up 5.5 per cent, with a 6.2 per cent increase in prescription drugs and a 4.0 per cent increase in front-store sales, primarily driven by over-the-counter products, cosmetics, and health and beauty. On an adjusted basis, Metro says it earned $1.52 per diluted share in its latest quarter, up from an adjusted profit of $1.35 per diluted share in the same quarter last year. This report by The Canadian Press was first published Aug. 13, 2025. Companies in this story: (TSX:MRU) The Canadian Press Sign in to access your portfolio
Cision Canada
4 days ago
- Business
- Cision Canada
METRO REPORTS 2025 THIRD QUARTER RESULTS Français
MONTRÉAL, Aug. 13, 2025 /CNW/ - METRO INC. (TSX: MRU) today announced its results for the third quarter of Fiscal 2025 ended July 5, 2025. 2025 THIRD QUARTER HIGHLIGHTS Sales of $6,871.0 million, up 3.3% Food same-store sales (1) up 1.9% Pharmacy same-store sales (1) up 5.5% Net earnings of $323.0 million, up 9.0% and adjusted net earnings (1) of $331.8 million, up 8.8% Fully diluted net earnings per share of $1.48, up 13.0% and adjusted fully diluted net earnings per share (1) of $1.52, up 12.6% 16 weeks / Fiscal Year (Millions of dollars, except for net earnings per share) 2025 % 2024 % Change (%) Sales 6,871.0 100.0 6,651.8 100.0 3.3 Operating income before depreciation and amortization and impairments of assets 655.7 9.5 620.2 9.3 5.7 Net earnings 323.0 4.7 296.2 4.5 9.0 Fully diluted net earnings per share 1.48 — 1.31 — 13.0 Adjusted net earnings (1) 331.8 4.8 305.0 4.6 8.8 Adjusted fully diluted net earnings per share (1) 1.52 — 1.35 — 12.6 40 weeks / Fiscal Year (Millions of dollars, except for net earnings per share) 2025 % 2024 % Change (%) Sales 16,898.0 100.0 16,281.5 100.0 3.8 Operating income before depreciation and amortization and impairments of assets 1,598.2 9.5 1,527.4 9.4 4.6 Net earnings 802.5 4.7 711.8 4.4 12.7 Fully diluted net earnings per share 3.63 — 3.13 — 16.0 Adjusted net earnings (1) 803.8 4.8 746.4 4.6 7.7 Adjusted fully diluted net earnings per share (1) 3.64 — 3.28 — 11.0 PRESIDENT'S MESSAGE "We are pleased with our results in the third quarter, marked by solid comparable sales growth in food and pharmacy, and good cost control. We successfully opened 5 new food stores in the quarter, a pace that will continue (2) in the fourth quarter, on track with our plan to accelerate the development of our growing discount banners. We are confident that our sustained investments in our retail network and supply chain combined with strong execution will continue to fuel our growth and create long-term shareholder value (2)", declared Eric La Flèche, President and Chief Executive Officer. SALES Sales in the third quarter of Fiscal 2025 ended on July 5, 2025 were $6,871.0 million, up 3.3% versus the third quarter of the prior year which ended on July 6, 2024, driven by higher sales in our retail network. Food same-store sales (1) were up 1.9% in the third quarter of Fiscal 2025 (2024 — 2.4%). Online food sales (1) were up 14.4% versus last year (2024 — 34.3%). Our food basket inflation was generally in line with the reported CPI for food purchased from stores. Pharmacy same-store sales (1) were up 5.5% (2024 — 5.2%), with a 6.2% increase in prescription drugs (1) and a 4.0% increase in front-store sales (1), primarily driven by over-the-counter products, cosmetics, and health and beauty. Sales in the first 40 weeks of Fiscal 2025 totalled $16,898.0 million, up 3.8% compared to $16,281.5 million for the corresponding period of 2024. This earnings measurement excludes financial costs, taxes, depreciation and amortization and impairments of assets. Operating income before depreciation and amortization and impairments of assets for the third quarter of Fiscal 2025 totalled $655.7 million, or 9.5% of sales, an increase of 5.7% versus the corresponding quarter of Fiscal 2024. Operating income before depreciation and amortization and impairments of assets for the first 40 weeks of Fiscal 2025 totalled $1,598.2 million, or 9.5% of sales, up 4.6% versus the corresponding period of 2024. The first 40 weeks of Fiscal 2024 benefited from a gain on sale of assets of $6.7 million. Gross margin (1) for the third quarter and the first 40 weeks of Fiscal 2025 was 19.8% versus 19.6% and 19.7% for the corresponding periods of 2024. The margin improvement in the quarter is partly attributable to productivity gains at our food distribution centers and a reduction in shrink. Operating expenses as a percentage of sales for the third quarter of Fiscal 2025 were 10.2%, the same rate as in the corresponding quarter of 2024. For the first 40 weeks of Fiscal 2025, operating expenses as a percentage of sales were 10.4% versus 10.3% for the corresponding period of 2024. The increase in operating expenses for the 40-week period ended on July 5, 2025 is mainly due to the launch of the Moi Rewards program in Ontario in the first quarter of 2025, fees related to higher online partnership sales and the recording of professional fees regarding the resolution of a tax position related to prior years. DEPRECIATION AND AMORTIZATION Total depreciation and amortization expense for the third quarter of Fiscal 2025 was $184.9 million versus $174.0 million for the corresponding quarter of 2024. For the first 40 weeks of Fiscal 2025, total depreciation and amortization expense was $454.6 million versus $434.6 million for the corresponding period of 2024. The increase in depreciation and amortization expense is mainly due to the timing of retail investments and the commissioning of investments in our supply chain, including some automation technology in the Pharmacy division and the final phase of our fresh distribution centre in Toronto last summer. IMPAIRMENTS OF ASSETS During the second quarter of Fiscal 2024, the Corporation recorded $20.8 million of impairments of assets resulting from the decision to have Metro stores in Ontario withdraw from the Air Miles® loyalty program in the summer of 2024. This impairment represents the entire carrying value of the loyalty program asset. NET FINANCIAL COSTS Net financial costs for the third quarter of Fiscal 2025 were $45.3 million compared with $46.6 million for the corresponding quarter of 2024. For the first 40 weeks of Fiscal 2025, net financial costs were $109.4 million compared with $113.1 million for the corresponding period of 2024. The decrease in financial costs is mainly due to lower interest expense on net debt partly offset by lower capitalized interest. INCOME TAXES The income tax expense of $102.5 million for the third quarter of Fiscal 2025 represented an effective tax rate of 24.1% compared with an income tax expense of $103.4 million and an effective tax rate of 25.9% for the third quarter of Fiscal 2024. The decrease in the effective tax rate in 2025 is mainly attributable to a provincial tax holiday related to the commissioning of our new automated distribution center for fresh and frozen products in Terrebonne. The 40-week period income tax expense of $231.7 million for Fiscal 2025 and $247.1 million for Fiscal 2024 represented effective tax rates of 22.4% and 25.8% respectively. The decrease in the effective tax rate in 2025 is mainly attributable to a $20.6 million income tax adjustment in respect of prior years and a provincial tax holiday related to the commissioning of our new automated distribution center for fresh and frozen products in Terrebonne. The total tax holiday represents approximately $66 million and we estimate it will be recognized over a period of 3 years (2). NET EARNINGS AND ADJUSTED NET EARNINGS (1) Net earnings for the third quarter of Fiscal 2025 were $323.0 million compared with $296.2 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $1.48 compared with $1.31 in 2024, up 9.0% and 13.0% respectively. Excluding the specific item shown in the table below, adjusted net earnings (1) for the third quarter of Fiscal 2025 totalled $331.8 million compared with $305.0 million for the corresponding quarter of 2024, and adjusted fully diluted net earnings per share (1) for third quarter of Fiscal 2025 were $1.52, versus $1.35 in 2024, up 8.8% and 12.6% respectively. Net earnings for the first 40 weeks of Fiscal 2025 were $802.5 million compared with $711.8 million for the corresponding period of 2024, while fully diluted net earnings per share were $3.63 compared with $3.13 in 2024, up 12.7% and 16.0% respectively. Excluding the specific items shown in the table below, adjusted net earnings (1) for the first 40 weeks of Fiscal 2025 totalled $803.8 million compared with $746.4 million for the corresponding period of 2024, and adjusted fully diluted net earnings per share (1) amounted to $3.64 versus $3.28, up 7.7% and 11.0% respectively. 40 weeks / Fiscal Year 2025 2024 Change (%) Net earnings (Millions of dollars) Fully diluted EPS (Dollars) Net earnings (Millions of dollars) Fully diluted EPS (Dollars) Net earnings Fully diluted EPS Per financial statements 802.5 3.63 711.8 3.13 12.7 16.0 Loss on impairment of a loyalty program, net of taxes of $2.7 — 18.1 Gain on disposal of an investment in an associate, net of taxes of $1.6 — (5.4) Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, net of taxes of $7.8 21.9 21.9 Favorable resolution of a tax position in respect of prior years (20.6) — Adjusted measures (1) 803.8 3.64 746.4 3.28 7.7 11.0 NORMAL COURSE ISSUER BID PROGRAM Under the current normal course issuer bid program, the Corporation may repurchase up to 10,000,000 of its Common Shares between November 27, 2024 and November 26, 2025. Between November 27, 2024 and August 1, 2025, the Corporation has repurchased 5,700,000 Common Shares at an average price of $98.55, for a total consideration of $561.8 million. On August 12, 2025, the Board of Directors declared a quarterly dividend of $0.37 per share, the same amount declared last quarter. FORWARD-LOOKING INFORMATION We have used, throughout this report, different statements that could, within the context of regulations issued by the Canadian Securities Administrators, be construed as being forward-looking information. In general, any statement contained herein that does not constitute a historical fact may be deemed a forward-looking statement. Expressions such as "continue", "estimate", "predict" and other similar expressions are generally indicative of forward-looking statements. The forward-looking statements contained herein are based upon certain assumptions regarding the Canadian food and pharmaceutical industries, the general economy, our annual budget, as well as our 2025 action plan. These forward-looking statements do not provide any guarantees as to the future performance of the Corporation and are subject to potential risks, known and unknown, as well as uncertainties that could cause the outcome to differ significantly. Risk factors that could cause actual results or events to differ materially from our expectations as expressed in, or implied by, our forward-looking statements are described and discussed under the "Risk Management" section in our Annual Report 2024. We believe these statements to be reasonable and pertinent as at the date of publication of this report and represent our expectations. The Corporation does not intend to update any forward-looking statement contained herein, except as required by applicable law. NON-GAAP AND OTHER FINANCIAL MEASUREMENTS In addition to the International Financial Reporting Standards (IFRS) measurements provided, we have included certain non-GAAP and other financial measurements. These measurements are presented for information purposes only. They do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measurements presented by other public companies. National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure sets out specific disclosure requirements for non-GAAP financial measures, non-GAAP ratios, and other financial measures, which are capital management measures, supplementary financial measures, and total of segments measures, as defined in the Instrument (together the "specified financial measures"). The specified financial measures we disclose in our documents made available to the public are presented by measurement categories below. NON-GAAP FINANCIAL MEASURES Adjusted earnings before net financial costs and income taxes is a non-GAAP financial measurement that, with respect to its composition, is adjusted to exclude net financial costs and special items from the composition of the most directly comparable financial measure disclosed in our consolidated financial statements, which is earnings before income taxes. Special items may include acquisition and restructuring charges, gains or losses on the disposal of investments, and amortization and impairment losses of intangible assets resulting from a business acquisition. Adjusted net earnings is a non-GAAP financial measurement that, with respect to its composition, is adjusted to exclude special items from the composition of the most directly comparable financial measure disclosed in our consolidated financial statements, which is net earnings. Special items may include acquisition and restructuring charges, gains or losses on the disposal of investments, amortization and impairment losses of intangible assets resulting from a business acquisition, and significant prior-year tax adjustments. For measurements depicting financial performance, we believe that presenting earnings adjusted for these items, which are not necessarily reflective of the Corporation's performance, leaves readers of financial statements better informed thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring. NON-GAAP RATIOS Adjusted fully diluted net earnings per share is a non-GAAP ratio by where a non-GAAP financial measure is used as one or more of its components. The non-GAAP component used is adjusted net earnings (1). Adjusted fully diluted net earnings per share is calculated by dividing the adjusted net earnings (1) attributable to equity holders of the parent by the weighted average number of Common Shares outstanding during the year, adjusted to reflect all potential dilutive shares. We believe that presenting this ratio, in which a non-GAAP financial measurement is used as one or more of its components, leaves readers of financial statements better informed as to the current period and corresponding prior year's period's performance, thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring. SUPPLEMENTARY FINANCIAL MEASURES The supplementary financial measures listed below are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Corporation. Food same-store sales are defined as comparable retail sales of stores with more than 52 consecutive weeks of operations, including relocated, expanded and renovated locations. Food same-store sales is a measure based on all stores in our network, including those whose sales are not included in the Corporation's consolidated financial statements. Online food sales are the sum of sales made from all our online channels. Pharmacy same-store sales (including total, front-store and prescription drugs) are defined as comparable retail sales of stores with more than 52 consecutive weeks of operations, including relocated, expanded and renovated locations. Pharmacy same-store sales do not form part of the Corporation's consolidated financial statements because the pharmacies are held by pharmacist owners. Gross margin ratio is calculated by dividing gross profit by sales. The significant investments in the modernization of our supply chain are largely behind us, and we are now focussed on realizing efficiency gains. These investments position us well for growth through the expansion of our retail network in the years ahead. As we begin our fourth quarter, we continue to face an uncertain economic environment, and it is difficult to predict how this environment will evolve and how it will impact our operations and our customers. We remain steadfast in our focus to deliver value to our customers through our robust merchandising programs, our strong private label and loyalty offers and working with our supply chain partners. CONFERENCE CALL Financial analysts and institutional investors are invited to participate in a conference call for the 2025 third quarter results at 9:00 a.m. (EDT) today, August 13, 2025. To access the conference call, please dial 1 (800) 990-4777. The media and investing public may access this conference via a listen mode only. Notice to readers: METRO INC. third quarter of 2025 interim condensed consolidated financial statements and management's discussion and analysis are available on the Internet at - Corporate Site - Investors - 2025 Quarterly Results - 2025 Third Quarter Results.
