Pharmacy sales helped boost Metro earnings in Q3, but profit fell

Metro Inc. said grocery sales were up last quarter but profits were down as the company has warned about headwinds to its earnings amid the launch of new distribution centres.

Metro Inc. says it earned a third-quarter profit of $296.2 million, down from $346.7 million in the same quarter last year, as its sales rose 3.5 per cent.

The grocery and drugstore retailer said Wednesday the profit amounted to $1.31 per diluted share for the quarter ended July 6, down from $1.49 per diluted share a year earlier.

Sales in the quarter amounted to $6.65 billion, up from $6.43 billion in the same quarter last year.

The increase in sales came as food same-store sales rose 2.4 per cent. Pharmacy same-store sales gained 5.2 per cent, with a 6.3 per cent increase in prescription drugs and a 3.0 per cent increase in front-store sales.

On an adjusted basis, Metro says it earned $1.35 per diluted share in its latest quarter, unchanged from its adjusted result a year earlier.

“We recorded solid comparable sales growth in the third quarter, on top of a very strong quarter last year, reflecting effective merchandising and good execution in our food and pharmacy banners,” Metro chief executive Eric La Flèche said in statement.

Metro warned earlier this year that it would face significant headwinds in its 2024 financial year related to its transition to new distribution centres in Terrebonne, Que., and Toronto.

“Our new automated fresh and frozen facility in Terrebonne is now fully operational with productivity levels ramping up in line with our plans, and the transfer to the last phase of our automated fresh facility in Toronto has begun,” La Flèche said.