Metro posts $198.1M profit in Q2, as sales rise

The grocer says it expects food sales to remain relatively stable in the short term

Metro Inc. reported a second-quarter profit of $198.1 million, up from $188.1 million a year earlier, as sales gained 1.9%.

The Montreal-based grocery and drugstore retailer says the profit amounted to 82 cents per diluted share for the 12-week period ended March 12, up from 75 cents per diluted share a year earlier.

Sales totalled $4.27 billion, up from $4.19 billion, as food same-store sales gained 0.8% and pharmacy same-store sales rose 9.4%.

On an adjusted basis, Metro says it earned 84 cents per diluted share for the quarter, up from an adjusted profit of 78 cents per share a year earlier.

In its outlook, Metro says it continues to face higher than normal inflationary pressures and labour shortages that, if prolonged, could put pressure on margins.

Metro says it expects food sales in the short term to remain relatively stable versus last year while it expects continued growth in its pharmacy business although somewhat moderated versus the first half of the year.

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