Metro marks end of ‘transition year’ with small profit dip
Global News
The company behind Metro grocery stores and Jean Coutu drugstores said the earnings were slightly down from $222.2 million in the fourth quarter last year.
Grocery and drugstore retailer Metro Inc. ended its “transition year” with fourth-quarter earnings of $219.9 million, with an almost $1-billion supply chain transformation in the rearview mirror and plans to grow its store footprint in the coming year.
“This transformation will provide capacity for future growth and efficiency while strengthening our market position,” said president and chief executive officer Eric La Flèche on a conference call with analysts.
“With the significant investments in the modernization of our supply chain behind us, we are well-positioned for growth to create long term … shareholder value.”
The company behind Metro grocery stores and Jean Coutu drugstores said the earnings were slightly down from $222.2 million in the fourth quarter last year, which included one more week but also included a labour strike that cost the company about $27 million after tax.
Metro began a major supply chain transformation project in 2017, with a new automated fresh and frozen distribution centre in Terrebonne, Que.; an expansion of the fresh produce distribution centre in Laval, Que.; and two new automated distribution centres in Ontario, one for frozen products and one for fresh.
The final piece of the puzzle, the second phase of the Ontario fresh facility, was recently finalized, La Flèche said.
The company opened nine new grocery stores during the fiscal year, said chief financial officer François Thibault, including three conversions to Super C, the company’s discount chain in Quebec. It also carried out major expansions and renovations at 11 food retail stores, he said, and relocated another two, increasing the store network’s total footprint by 1.5 per cent.
La Flèche said Metro also undertook 28 major renovations this past year in its pharmacy network. He said there are 30 major projects planned for its pharmacies in 2025, including 12 expansions and 18 renovations.
