Thursday, March 28, 2024
ADVT 
National

Metro hikes dividend 10% as profit climbs

Darpan News Desk The Canadian Press, 24 Jan, 2023 10:51 AM
  • Metro hikes dividend 10% as profit climbs

The first of Canada's big three grocers to release earnings this year is reporting a double digit increase in profits and a 10 per cent dividend hike for a period that saw food prices rise at the fastest pace in decades.

Metro Inc., which operates both supermarkets and drugstores, reported a net income of $231.1 million in its first quarter of the year on Tuesday, up 11.3 per cent from $207.7 million in the same quarter a year ago.

The profit amounted to 97 cents per diluted share for the 12-weeks ended Dec. 17, up from 85 cents per diluted share a year earlier, prompting the company to raise its quarterly dividend to 30.25 cents per share, up from 27.5 cents per share.

Grocery inflation during the same period from Sept. to Dec. ping-ponged between 11 per cent and 11.4 per cent, according to Statistics Canada.

Grocers have come under intense scrutiny in recent months for posting strong profits as many Canadians struggle with higher food costs. Critics have accused grocers of so-called greedflation, suggesting they are profiteering at a time of spiralling inflation.

But grocers have said the higher costs are being passed through the supply chain from food manufacturers, wholesalers, processors and producers.

"In 2022, Metro received more than 27,000 price increases averaging more than 10 per cent from suppliers for dry groceries alone — nearly three times the annual average," Metro CEO Eric La Flèche said during an annual meeting of shareholders on Tuesday.

"This high inflation over the past several months is difficult for everyone to accept, but it is a global reality (and) Canada is faring better than most countries."

Grocers have also repeatedly said their profit margins on food remain stable.

In fact, La Flèche said Metro is "absorbing some of the (price) increases as our gross food margins are decreasing."

Yet researchers have said a lack of transparency in the financial results of grocers makes it difficult to determine profit margins on food because companies lump different retail segments — such as food, pharmacy and general merchandise — together. Items such as cosmetics, over-the-counter drugs and apparel are thought to have higher gross profit margins.

Metro's sales in the quarter totalled $4.67 billion, up 8.2 per cent from nearly $4.32 billion a year ago.

But La Flèche said the increase is "mainly due to higher inflation this quarter."

Food same-store sales rose 7.5 per cent compared with a year ago.

Metro's grocery network of about 975 stores includes full-service supermarkets like Metro Plus and Adonis, discount stores like Super C in Quebec and Food Basics in Ontario, and neighbourhood and specialty stores like Marché Richelieu, Marché Ami and Première Moisson.

Pharmacy same-store sales gained 7.7 per cent compared with a year ago. That included a 6.5 per cent increase in prescription drug sales and a 10.2 per cent increase in front-store sales primarily driven by over-the-counter products, cosmetics and health and beauty, La Flèche said.

The company has about 645 drugstores under banners including Brunet, Clini Plus, Jean Coutu and pharmacies within Metro and Food Basics stores.

On an adjusted basis, Metro said it earned $1.00 per diluted share, up from an adjusted profit of 88 cents per diluted share a year earlier.

MORE National ARTICLES

Police search for up to 15 youth in TTC assault

Police search for up to 15 youth in TTC assault
Toronto police say officers responded to an area in the city's east end Monday afternoon where a group of 10 to 15 youths, all male, allegedly assaulted two TTC employees. Police described the injuries as minor, noting the initial report noted no obvious signs of injury.    

Police search for up to 15 youth in TTC assault

Fiscal room tightening as economy teeters

Fiscal room tightening as economy teeters
Prime Minister Justin Trudeau has said affordability and making Canada competitive were his priorities heading into this cabinet meeting. Ottawa is insisting on accountability for any new health funding and Trudeau has not publicly committed to meet the premiers' demands.    

Fiscal room tightening as economy teeters

Man in distress pours milk on his face in a grocery store, turns out he had been victim of an assault

Man in distress pours milk on his face in a grocery store, turns out he had been victim of an assault
On January 17th at approximately 5:50 pm the New Westminster Police were called to the 800 block of Carnarvon Street to assist a man in distress who was pouring milk on his face inside a grocery store. Officers learned that the man was the victim of an assault and moments earlier he had been assaulted with bear spray in an attempted robbery. 

Man in distress pours milk on his face in a grocery store, turns out he had been victim of an assault

Trudeau mum on sending tanks to Ukraine

Trudeau mum on sending tanks to Ukraine
Nearly a year after Russia's invasion, most members of the NATO military alliance have said they're in favour of giving Leopard 2 tanks to Kyiv, but Germany has not. As a major supplier of the tanks, Germany requires that allies seek permission before re-exporting them to other countries, and Berlin has warned against provoking Russia.

Trudeau mum on sending tanks to Ukraine

Parks Canada announces upgrades in mountain parks

Parks Canada announces upgrades in mountain parks
The $71 million in federal funding for Banff, Jasper, Yoho and Kootenay national parks includes upgrades to critical infrastructure, such as Parks Canada dispatch for emergency calls, as well as to several roadways and bridges. It also includes improvements in the community of Lake Louise, Alta.

Parks Canada announces upgrades in mountain parks

Inquest into suicide of VPD officer begins

Inquest into suicide of VPD officer begins
Jennifer Chan told the inquest she believed her sister's mental health problems stemmed from sexual assault and extortion by her co-worker, culminating in her death by suicide in January 2019.

Inquest into suicide of VPD officer begins

PrevNext