Metro’s profit went up again in Q1, largely thanks to price increases.
The grocer reported a profit of $231.1 million for the quarter ending Dec. 31, up from $207.7 million in the same period a year prior. Sales totaled $4.67 billion, up from $4.32 billion, which the company primarily attributed to inflation.
“We delivered solid results in the first quarter, gaining market share in a very competitive environment,” says Eric La Flèche, Metro’s president and CEO. He notes that the grocer will continue to execute on its business plans to deliver a strong value proposition to customers, invest in its retail network and infrastructure, and support local communities.
Metro operates 950 food stores under the Metro, Metro Plus, Super C and Food Basics banners, as well as 650 drugstores primarily under the Jean Coutu banners
Food same-store sales rose 7.5% compared with a year ago. Online food sales were up 40% versus last year. Metro’s food basket inflation was 10%, the same level as the previous quarter, the company says.
Pharmacy same-store sales gained 7.7% compared with a year ago. It is reporting a 6.5% increase in prescription drug and a 10.2% gain in front-store sales, primarily driven by OTC meds, cosmetics and health and beauty.
Metro’s gross margin was stable year-over-year at 19.6%, which the company attributed to higher food costs. Operating expenses were down slightly.
