Metro marks end of ‘transition year’ with small profit dip

Grocery and drugstore retailer Metro Inc. ended its “transition year” with fourth-quarter net of $219.9 million, with an astir $1-billion proviso concatenation translation successful the rearview reflector and plans to turn its store footprint successful the coming year.

“This translation volition supply capableness for aboriginal maturation and ratio portion strengthening our marketplace position,” said president and main enforcement serviceman Eric La Flèche connected a league telephone with analysts.

“With the important investments successful the modernization of our proviso concatenation down us, we are well-positioned for maturation to make agelong word … shareholder value.”

The institution down Metro market stores and Jean Coutu drugstores said the net were somewhat down from $222.2 cardinal successful the 4th fourth past year, which included 1 much week but besides included a labour onslaught that outgo the institution astir $27 cardinal aft tax.

Metro began a large proviso concatenation translation task successful 2017, with a caller automated caller and frozen organisation centre successful Terrebonne, Que.; an enlargement of the caller nutrient organisation centre successful Laval, Que.; and 2 caller automated organisation centres successful Ontario, 1 for frozen products and 1 for fresh.

The last portion of the puzzle, the 2nd signifier of the Ontario caller facility, was precocious finalized, La Flèche said.

The institution opened 9 caller market stores during the fiscal year, said main fiscal serviceman François Thibault, including 3 conversions to Super C, the company’s discount concatenation successful Quebec. It besides carried retired large expansions and renovations astatine 11 nutrient retail stores, helium said, and relocated different two, expanding the store network’s full footprint by 1.5 per cent.

La Flèche said Metro besides undertook 28 large renovations this past twelvemonth successful its pharmacy network. He said determination are 30 large projects planned for its pharmacies successful 2025, including 12 expansions and 18 renovations.

In the coming year, Metro plans to unfastened 12 caller discount stores, including a fewer conversions, helium said.

Metro launched its caller Moi Rewards programme successful Ontario during the quarter, and La Flèche said the effect has been bully truthful far, with much than a cardinal enrolments successful little than 4 weeks.

The company’s discount stores continued to outperform the wide store web during the 4th quarter, said La Flèche, though helium said the spread betwixt discount and marketplace stores is narrowing.

He said Metro sees opportunities to grow its discount web successful some Ontario and Quebec.

“Promotional penetration was up again this 4th compared to past year, and backstage statement income proceed to outpace nationalist brands,” arsenic shoppers continued to look for income and discounts, said La Flèche.

The institution besides saw its online nutrient income turn 27.6 per cent versus the comparable 12-week play past year.

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This was “fueled by third-party partnerships for same-day transportation and the ongoing enlargement of our click-and-collect work to our discount banners,” said La Flèche.

That work has been deployed astatine Super C successful Quebec, and is successful advancement astatine Food Basics successful Ontario, helium said, with much additions planned successful the coming year.

La Flèche said Metro’s net for the 4th fourth came successful arsenic expected.

The nett amounted to 98 cents per diluted stock for the 4th compared with a nett of 96 cents per stock a twelvemonth earlier erstwhile it had much shares outstanding.

Sales successful the 12-week play ended Sept. 28 totalled $4.94 cardinal compared with $5.07 cardinal for the 13-week play ended Sept. 30, 2023.

Food same-store income for the 4th were up 2.2 per cent.

Pharmacy same-store income roseate 5.7 per cent, helped by a 6.8 per cent summation successful medicine drugs and a 3.3 per cent emergence successful front-store sales, chiefly driven by over-the-counter products, cosmetics and wellness and beauty.

On an adjusted basis, Metro said it earned $1.02 per diluted stock successful its latest 4th compared with an adjusted nett of 99 cents per diluted stock successful the aforesaid 4th past year.

Metro said successful its net merchandise that it expects to gradually resume its nett maturation successful fiscal 2025, and maintained its yearly maturation people of betwixt 8 and 10 per cent of adjusted net per stock implicit the mean and agelong term.