Metro Inc. reports Q3 profit dip amid sales growth

Date:

Photo: Metro

Share post:

Canadian grocery and pharmacy retailer Metro Inc. reported a decrease in third-quarter profit despite a notable increase in sales. 

The Montreal-based retailer announced a profit of $296.2 million for the quarter ended July 6, down from $346.7 million in the same period last year. This translates to earnings of $1.31 per diluted share, compared to $1.49 per diluted share in the previous year. Despite the profit decline, Metro’s sales showed a positive trend, rising 3.5% to reach $6.65 billion, up from $6.43 billion in the corresponding quarter of the previous year.

Metro’s food segment demonstrated resilience, with same-store sales increasing by 2.4%. The pharmacy division performed even stronger, posting a 5.2% gain in same-store sales. This growth was driven by a 6.3% increase in prescription drug sales and a 3.0% rise in front-store sales, highlighting the diverse strengths within Metro’s retail portfolio.

Eric La Fleche, Metro’s Chief Executive Officer stated, “We recorded solid comparable sales growth in the third quarter, on top of a very strong quarter last year, reflecting effective merchandising and good execution in our food and pharmacy banners.” This growth is particularly noteworthy given the challenging comparison to the previous year’s robust results.

However, Metro faces significant operational changes that may impact its financial outlook. The company had previously warned investors about potential headwinds in its 2024 fiscal year related to the transition to new distribution centres. These facilities, located in Terrebonne, Quebec, and Toronto, Ontario, represent a major investment in Metro’s supply chain infrastructure.

Providing an update on this transition, La Fleche noted, “Our new automated fresh and frozen facility in Terrebonne is now fully operational with productivity levels ramping up in line with our plans, and the transfer to the last phase of our automated fresh facility in Toronto has begun.” The progress suggests that Metro is navigating the complexities of modernizing its distribution network while maintaining its market position.

The company’s adjusted earnings per diluted share remained steady at $1.35, matching the figure from the same quarter last year. 

RELATED ARTICLES

Load more

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Casavogue Highlights Canadian-Made Bermex Dining Furniture

Casavogue in Montréal showcases Canadian-made Bermex dining furniture, including the Expression and Clara tables and Rocko and Luca chairs. The Québec manufacturer offers customizable wood finishes and upholstery, with showroom consultants helping customers plan coordinated dining spaces.

The Kitchen to open 9,000-square-foot dining destination at Toronto’s Mirvish Village in 2027

A new Toronto food hall will bring 12 local restaurant brands together in a 460-seat dining space featuring automated food delivery and community event facilities.

Retail Insider “Q3 2026 Real Estate & Leasing Report”: Signed Space Must Become Paying Space

High occupancy and stronger replacement rents coexist with costly anchor redevelopments. Retail Insider’s Q3 report examines why openings, rent commencement and capital returns will determine the value of current leasing progress.

RioCan Retail Occupancy Hits Record 98.9% as Leasing Demand Drives Rental Growth: Executive interview

RioCan reports strong demand for retail space, 17% leasing spreads and expansion opportunities as it outlines its strategy for portfolio growth heading into 2027.

Intuit Mailchimp research finds personalized emails boost Canadian holiday shopping sales

Canadian ecommerce businesses saw higher order values and repeat purchases through targeted email campaigns, according to new Intuit Mailchimp research examining billions of marketing messages.

Gildan cuts 2026 outlook as weaker apparel demand weighs on third-quarter sales

Gildan Activewear lowers its 2026 revenue and earnings forecasts after weaker-than-expected demand across wholesale and retail channels, while continuing its HanesBrands integration.

Hirevue examines how AI is changing holiday hiring as employers prepare for seasonal rush

Hirevue's Christie Brodbeck discusses holiday hiring trends, seasonal job demand and how AI is helping employers screen applicants, validate skills and recruit more efficiently.

Bio-K+ expands retail distribution across Canada and U.S. with new partnerships and product launches

The Quebec-based probiotic company is expanding into Walmart, Costco.ca, Circle K and major U.S. grocery chains as it broadens its North American retail and e-commerce presence.

Mandy’s Gourmet Salads to launch Calgary delivery service through Uber Eats

Montreal-based Mandy’s Gourmet Salads will enter the Calgary market Nov. 9 with delivery of its salads, bowls, soups and smoothies through Uber Eats.

Morguard Reports 90.3% Retail Occupancy as Third-Quarter Retail NOI Declines

Morguard reported 90.3 per cent retail occupancy in the third quarter of 2026, while adjusted net operating income from its retail portfolio declined year over year amid higher vacancies and lower lease cancellation fees.

Crombie REIT reports higher funds from operations as occupancy reaches record level

Crombie REIT reported a 3 per cent increase in third-quarter funds from operations per unit, stronger rental rates and a planned $134-million acquisition of 13 Ontario retail properties.

Daily Synopsis: November 4, 2026

Some Canadians skipping meals amid grocery costs, Diwali finds wider audience, Amazon breaks ground on huge Nova Scotia warehouse, 3 bookstores opening in Vancouver, 2 Costco stores opening soon in Alberta, and other news.

Plaza Retail REIT reports higher earnings, occupancy and cash flow in third quarter

Plaza Retail REIT reported higher funds from operations, a 98.3 per cent committed occupancy rate and increased net operating income for the first nine months of 2026.

SmartCentres reports higher occupancy and retail leasing growth in third quarter

SmartCentres reported 98.2 per cent retail occupancy and higher rental income in the third quarter, while advancing new Walmart-anchored developments and expanding its self-storage portfolio.

Peloton Rebuilds Canadian Retail Presence Through Fitness Factory Partnership

Peloton is expanding its Canadian physical retail network from two to ten locations through The Fitness Factory. The partnership follows earlier showroom closures and accompanies three new treadmills as the company increases its focus on running.

KIT + ACE Expands Canadian Network to 18 Locations with Brentwood Store, Prepares U.S. Entry

KIT + ACE is expanding to 18 Canadian locations with a new store at The Amazing Brentwood in Burnaby. CEO David Lui also confirms the Vancouver-founded apparel retailer is working toward finalizing its first U.S. store under Unity Brands.

A Price Freeze That Doesn’t Freeze Canadian Grocery Bills

Sylvain Charlebois questions whether the grocery industry's annual supplier price blackout benefits Canadian shoppers. His analysis of historical monthly food-price changes highlights the distinction between frozen supplier negotiations and prices at the checkout.

Maple Leaf Foods sales surpass $1 billion in Q3

Maple Leaf Foods reports higher third-quarter sales and adjusted EBITDA but lowers its 2026 earnings outlook amid persistent food production inflation and pressure on consumers.

Canadian Tire invests $200 million in Mark’s store expansion, opens largest location in Thunder Bay (photos/video)

Canadian Tire plans to invest $200 million in Mark’s stores through 2028, expanding its new retail format to 40 locations across Canada.

Serruya Private Equity Appoints Jenny Frankel to Support Retail Strategy and Brand Growth and lead The Body Shop

Award-winning beauty entrepreneur and Nudestix founder brings 25+ years of brand-building expertise, ethical beauty credentials, and deep Canadian retail relationships to SPE's growing portfolio.