Metro, the Canadian retail grocer, has reported a decline in earnings but an increase in per-share income in its fiscal first quarter, with revenue growth surpassing expectations. However, the company has warned that costs will be higher in fiscal 2024.

In the three months ending on December 23, Metro's net income stood at 228.5 million Canadian dollars ($170.3 million), down from C$231.1 million in the same quarter of the previous year. On a per-share basis, net earnings rose to C$0.99 from C$0.97.

Adjusted earnings reached C$1.02 per share, exceeding analysts' expectations of C$0.99 per share according to FactSet.

The company's sales experienced a 6.5% increase, reaching C$4.97 billion, which also exceeded analyst projections of C$4.91 billion. Food same-store sales rose by 6.1%, showing a slight decrease in growth compared to the previous year (7.5%), while adjusting for the Christmas shift, sales were up by 3.4%. Pharmacy same-store sales increased by 3.9%, compared to the 7.7% growth observed in the year-ago period.

In terms of online food sales, Metro experienced more than a doubling compared to last year's growth of 40%, primarily due to partnership sales.

Looking ahead to the new fiscal year, Metro anticipates significant challenges associated with the launches of its automated distribution center in Terrebonne, Quebec, as well as the final phase of its automated fresh-produce plant in Toronto. As a result, the company expects duplicated costs, learning-curve inefficiencies, higher depreciation, and lower capitalized interest.

Metro's President and Chief Executive, Eric La Flèche, explains that the company cannot absorb these additional expenses in the current fiscal year. Therefore, the company forecasts that operating income before depreciation and amortization will grow by less than 2% and adjusted net earnings per share will remain flat or decline by C$0.10 in the fiscal year.

However, La Flèche remains confident that the company will resume its profit growth after fiscal 2024. Metro is maintaining its publicly disclosed annual growth target of between 8% and 10% for net earnings per share over the medium and long term.

Germany's Economy Contracts in Q4 2023

Lawsuit Filed Against Citigroup by New York Attorney General

Leave A Reply

Your email address will not be published. Required fields are marked *

Related posts

Positive Progress in Weight-Loss Drug Trials
News

Positive Progress in Weight-Loss Drug Trials

Viking Therapeutics Inc. experiences positive progress in weight-loss drug trials, showing potential for significant wei...

The Impact of the Emergency Landing of an Alaska Airlines 737 MAX 9 Flight
News

The Impact of the Emergency Landing of an Alaska Airlines 737 MAX 9 Flight

The recent emergency landing of an Alaska Airlines 737 MAX 9 flight has caused concerns among nervous flyers and a rippl...

IBM: Underappreciated AI Player
News

IBM: Underappreciated AI Player

Industry analysts believe that investors are overlooking IBM's potential in the field of artificial intelligence (AI), d...

Strong Q3 Results Boost E2open Parent Holdings Shares
News

Strong Q3 Results Boost E2open Parent Holdings Shares

E2open Parent Holdings experienced a significant surge in pre-market trading after releasing impressive third-quarter fi...