In This Article:
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Total Sales: $5.1 billion, an increase of 2.9% year-over-year.
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Food Same-Store Sales: Up 1%, adjusted for calendar shift up 2.4%.
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Pharmacy Same-Store Sales: Up 5.1%.
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Gross Margin: 19.7% of sales, compared to 19.6% last year.
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Operating Expenses: $528.5 million, up 4.4% year-over-year.
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EBITDA: $481.5 million, representing 9.4% of sales, up 2.9% year-over-year.
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Depreciation and Amortization: $133.6 million, up 1.9% year-over-year.
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Net Financial Costs: $30.7 million, down $1.7 million year-over-year.
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Effective Tax Rate: 18.2%, lower than 25% last year.
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Adjusted Net Earnings: $245.4 million, a 4.4% increase year-over-year.
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Adjusted Net Earnings Per Share: $1.10, up 7.8% year-over-year.
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Store Network Expansion: Net increase of 18,300 square feet or 0.1%.
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Share Repurchase: 1,425 million shares for $129.6 million.
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Quarterly Dividend: $0.37 per share, a 10.4% increase year-over-year.
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Online Sales Growth: Up 18% for the quarter.
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Prescription Sales Growth: Up 7.3%.
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Release Date: January 28, 2025
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 2.9% increase in total sales for the first quarter, reaching $5.1 billion.
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The company benefited from a provincial tax holiday of $6.1 million related to its new automated distribution center.
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Same-store sales in the pharmacy division grew by 5.1%, with prescription sales up 7.3%.
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Online sales grew by 18% for the quarter, driven by third-party partnerships and the growth of click and collect services.
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The company declared a quarterly dividend increase of 10.4%, marking the 31st consecutive year of dividend growth.
Negative Points
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Operating expenses increased by 4.4% compared to the same quarter last year, partly due to the launch of the Moi Rewards program.
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The effective tax rate decreased to 18.2% from 25% last year, influenced by a one-time tax gain.
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The company faces inflationary pressures on certain commodities and the impact of a weaker Canadian dollar.
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The gap between discount and conventional banners is narrowing, indicating potential challenges in maintaining growth momentum.
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The delayed start to the cough and cold season negatively impacted pharmacy sales.
Q & A Highlights
Q: Can you provide details on the SG&A costs related to the launch of the Moi program in Ontario and the tax resolution? A: Francois Thibault, CFO, explained that the combined impact of these two events was about $7 million. The costs were quite similar in size, with one related to the Moi launch and the other to the tax resolution. These are mostly one-time marketing and advertising expenses for the program launch.