Metro Q1 profit down on frozen food distribution centre costs

Grocery and drugstore retailer Metro Inc. raised its dividend as it reported its first-quarter profit fell compared with a year ago, weighed down by costs related to the temporary closure of its frozen food distribution centre in Toronto.

The company says it will pay a quarterly dividend of 40.75 cents per share, up from 37 cents per share.

The increased payment to shareholders came as Metro says it earned $226.3 million or $1.05 per diluted share for the 12-week period ended Dec. 20 compared with a profit of $259.5 million or $1.16 per diluted share in the same quarter a year earlier. 

Metro was forced to stop work at its Toronto frozen food distribution centre on Sept. 12 due to an issue with its refrigeration system and resumed operations on Nov. 10.

On an adjusted basis, Metro says it earned $1.16 per diluted share for the quarter, up from $1.10 per diluted share.

Sales for the quarter totalled $5.29 billion, up from $5.12 billion a year earlier. The increase came as food same-store sales were up 1.6 per cent, while pharmacy same-store sales rose 3.9 per cent with a 5.1 per cent increase in prescription drugs and a 1.3 per cent increase in front-store sales.