This article first appeared on GuruFocus .
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Revenue:$5.1 billion, an increase of 4.1% year-over-year.
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Food Same-Store Sales Growth:1.8% in the quarter, 1.5% when adjusted for the Christmas shift.
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Pharmacy Same-Store Sales Growth:5.1%, with prescription sales up 6.1% and front store sales up 2.8%.
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Gross Margin:$1.03 billion or 20.1% of sales, compared to 20% last year.
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Operating Expenses:$538.9 million, 10.5% of sales, down from 10.6% last year.
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EBITDA:$508.6 million, up 10.3% year-over-year, representing 9.9% of sales.
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Adjusted EBITDA:$488.5 million, up 6% year-over-year, 9.6% of sales.
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Net Financial Costs:$37.3 million, up from $33.4 million last year.
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Adjusted Net Earnings:$236.5 million, up 4.4% year-over-year.
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Adjusted EPS:$1.11, up 8.8% from $1.02 last year.
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Capital Expenditures:$85.3 million, consistent with last year.
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Store Openings and Renovations:6 new or converted stores, 4 major renovations, net increase of 141,000 square feet.
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Share Repurchase:2.9 million shares for $279.8 million at an average price of $96.47.
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Online Sales Growth:19.8% in the quarter.
Release Date: April 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Metro Inc ( MTRAF ) reported a 4.1% increase in sales, reaching $5.1 billion, driven by new store openings and same-store sales growth.
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Pharmacy same-store sales grew by 5.1%, with prescription sales up by 6.1% and front store sales by 2.8%.
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The company's gross margin improved to 20.1% of sales, partly due to productivity gains in distribution centers.
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Adjusted EBITDA increased by 6% year-over-year, reaching 9.6% of sales.
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Online sales grew by 19.8%, supported by third-party marketplaces and the expansion of click and collect services.
Negative Points
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A strike in Quebec operations impacted produce distribution and sales, particularly around Easter, though the financial impact is yet to be fully assessed.
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Operating expenses increased by 3.4% year-over-year, reflecting ongoing cost pressures.
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Net financial costs rose to $37.3 million, primarily due to higher interest expenses on net debt.
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Fuel price increases are expected to add approximately $5 million per quarter to distribution costs, potentially impacting margins.
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The competitive environment remains intense, with flat to declining market tonnage indicating consumer pressure.
Q & A Highlights
Q: Have you seen any changes in customer behavior due to inflationary pressures, particularly in terms of leaning towards discount options? A: Eric La Fleche, President and CEO, noted that customer behavior has been consistent, with a continued preference for discount options and private labels. Inflation is primarily driven by the meat category and CPG cost increases.
Q: How are fuel prices impacting consumer behavior and your cost structure? A: Eric La Fleche explained that while fuel prices add to consumer affordability pressures, Metro is well-positioned with its store formats to address these needs. On the cost side, fuel price increases are impacting distribution costs, potentially adding around $5 million per quarter if current prices persist.
Q: Is the competitive environment affecting your sales growth, and how are you managing it? A: Eric La Fleche stated that the competitive environment is intense but rational, with low market consumption due to consumer pressures. Metro is managing this with its strong market positioning and competitive pricing strategies.
Q: Can you provide insights into the impact of the Quebec strike on your operations? A: Eric La Fleche mentioned that the strike, affecting Quebec operations, has impacted sales and incurred additional costs due to contingency plans. The full financial impact will be communicated once the dispute is resolved.
Q: How is the pharmacy side of the business performing, particularly with GLP-1 sales? A: Marc Giroux, Chief Operating Officer, noted that GLP-1 sales are growing strongly, driven by new product generations. Metro is maintaining its market share in this segment, contributing to overall pharmacy sales growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
