Metro Stock Earnings Reports

Metro reported Q1 FY2026 results with total sales of $5.3 billion, up 3.3% year-over-year. Food same-store sales rose 1.6% (1.9% adjusted for a Christmas timing shift); pharmacy same-store sales grew 3.9% (prescription sales +5.1%). The company incurred $21.6 million pretax ($15.9M post-tax) of direct costs from a temporary shutdown of its frozen-food distribution center in Toronto; operations have fully resumed. Reported gross margin was flat at 19.7% of sales. Adjusted EBITDA was $504.2 million (after excluding the freezer-related costs), up 4.7% and representing 9.5% of sales; adjusted net earnings were $248.7 million and adjusted diluted EPS was $1.16, up 5.5% year-over-year. Operating expenses increased 5.5% (10.5% of sales) but rose only 1.6% excluding freezer-related costs. CapEx in Q1 was $61.9 million, and full-year CapEx is expected to be approximately $550 million, focused on retail network expansion and supply-chain investments (including pharmacy automation). Metro repurchased 1.0 million shares under its normal issuer bid for $98.7 million to date and declared a quarterly dividend of $0.475 (annualized $1.63), a 10.1% increase — the 32nd consecutive year of dividend growth. Other highlights: online sales grew 25.8% (driven by third-party marketplaces, click-and-collect and new delivery in discount banners); discount banner expansion continues (3 new discount stores opened in Q1, plan for about a dozen in FY2026); management reiterated confidence in long-term returns from supply-chain automation and said competition is intense but rational. Management emphasized cost-control discipline and the diversified food + pharmacy business model as positioning Metro to navigate inflationary pressures and industry square-footage growth.