Metro reports $259.5M Q1 profit, up from $228.5M a year ago, sales also up

Metro Inc. raised its dividend and reported a first-quarter profit of $259.5 million, up from a profit of $228.5 million in the same quarter last year.

The grocery and drugstore retailer says it will now pay a quarterly dividend of 37 cents per share, up from 33.5 cents per share.

The increased payment to shareholders came as Metro reported a profit of $1.16 per diluted share for the 12-week period ended Dec. 21, up from 99 cents per diluted share a year earlier.

Sales in the quarter totalled $5.12 billion, up from $4.97 billion in the same quarter last year.

Food same-store sales were up 1% compared with a year earlier and up 2.4% after adjusting for a shift of two significant pre-Christmas shopping days to the second quarter.

Pharmacy same-store sales were up 5.1% with a 7.3% increase in prescription drugs. Front-store same-store sales were up 0.5% compared with a year ago and up 1.9% after adjusting for the Christmas shift.

On adjusted basis, Metro says it earned $1.10 per diluted share in its latest quarter compared with an adjusted profit of $1.02 per diluted share in the same quarter last year.

"We are pleased with our first-quarter results which were driven by solid revenue growth and good expense control," Metro chief executive Eric La Flèche said in a statement.

"Our commercial programs continue to resonate with customers, aided by the successful launch of our Moi Rewards program in Ontario this fall, leading to increased traffic and tonnage."