Discount store sales growth and “new heights” of private label penetration propelled Metro to a solid Q1 performance.
On Tuesday (Jan. 30), the grocer reported a first-quarter profit of $228.5 million, slightly less than the profit of $231.1 million from the last period a year earlier. Sales rose 6.5% and the company hiked its dividend.
Food same-store sales moved up 6.1%, while Pharmacy same-store sales were up 3.9% with a 6.6% increase in prescription drugs.
“We recorded solid results in the first quarter as our teams continued to deliver good value to customers in all our food and pharmacy banners,” says Metro president and CEO, Eric La Flèche.
“Our discount food stores continue to grow their sales at a faster pace, private label penetration reached new heights and our MOI loyalty program now has 2.5 million members, double the size of Metro&Moi.”
In late November, the grocer announced plans to open its 106th Super C discount banner store, in the Outaouais region of Quebec. The move is meant to “consolidate our position as the best discounters in Quebec… [with] the best quality-price ratio,” says Super C’s senior VP Loïc Cloutier.
Sales for the 12-week period totaled $4.97 billion, up from $4.67 billion in the same quarter a year earlier that ended on Dec. 17, 2022.
Metro adds that food basket inflation was about 4%, lower than the reported Consumer Price Index, and down from 5.5% in the previous quarter.
