Metro Inc. (TSX: MRU) posted its financial results for Q2 2026, with sales rising to $5.11 billion from $4.91 billion a year earlier.
By segment, food revenue rose to $3.96 billion from $3.83 billion, while pharmacy revenue increased to $1.15 billion from $1.08 billion.
Net earnings climbed to $246.6 million from $220.0 million and diluted EPS rose to $1.16 from $0.99. On adjusted basis, net earnings rose to $236.5 million from $226.6 million, while adjusted diluted EPS increased to $1.11 from $1.02. The quarter’s adjustment bridge included a $16.7 million after-tax gain on warehouse disposals and $6.6 million of after-tax amortization tied to the Jean Coutu acquisition.
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Operating cash inflow in the quarter rose to $559.9 million from $379.7 million, while financing cash outflow expanded to $419.9 million from $283.6 million in the quarter largely because the company accelerated buybacks.
Still, cash and cash equivalents rose to $131.1 million from $67.3 million at fiscal 2025 year-end, while the company still had a fully unused $600.0 million revolving credit facility.
On productivity and operating output, food same-store sales rose 1.8%, or 1.5% adjusted for the Christmas shift, versus 5.3% last year. Online food sales climbed 19.8%, down from 26.2% growth a year ago. Pharmacy same-store sales increased 5.1%, with prescription drugs up 6.1% and front-store sales up 2.8%.
METRO and its retailers opened or converted six stores in the first half, completed major expansions and renovations on four stores, closed one store, and added a net 141,300 square feet, or 0.6%, to the food network.
The firm declared a quarterly dividend of $0.4075 per share, unchanged from last quarter.
Guidance stayed qualitative, with the company announcing it plans about a dozen new or converted discount stores this fiscal year. Second, the strike at its Laval produce distribution centre, which began March 30, will hit Q3 results, with further detail to come. Management said Quebec stores are now generally well stocked under a contingency plan, but the labor dispute is now the clearest near-term variable hanging over an otherwise solid quarter.
Metro last traded at $92.88 on the TSX.
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