Metro Inc. (TSX: MRU) posted solid fiscal Q3 2025 results with sales of $6.87 billion, up 3.3% from $6.65 billion a year ago.
Food same-store sales rose 1.9% versus 2.4% last year. Online food sales growth slowed to 14.4% from 34.3% a year ago. Pharmacy same-store sales rose 5.5%, with prescriptions up 6.2% and front-store sales up 4.0%.
Gross margin improved to 19.8% from 19.6%, lifting gross profit to an estimated $1.36 billion versus $1.30 billion. Operating income also rose 5.7% to $655.7 million, or 9.5% of sales. The 20-bp gross-margin lift was attributed to productivity gains at food distribution centers and lower shrink.
Net earnings increased 9.0% to $323.0 million from $296.2 million a year ago, while diluted EPS rose 13.0% to $1.48 from $1.31.
Adjusted net earnings were $331.8 million, up 8.8% from $305.0 million and adjusted diluted EPS rose 12.6% to $1.52 from $1.35. The only adjustment in the quarter was the after-tax amortization of intangible assets from the Jean Coutu acquisition at $8.8 million.
Under its current NCIB, Metro repurchased 5.7 million common shares between Nov. 27, 2024 and Aug. 1, 2025 at an average price of $98.55 for $561.8 million. The lower average diluted share count is evident in EPS outpacing net income. The board declared a $0.37 quarterly dividend, unchanged from last quarter.
The company says the heavy supply-chain modernization spend is largely done and is now focused on extracting efficiencies while expanding its retail footprint. However, it continues “to face an uncertain economic environment,” thus finding it “difficult to predict how this environment will evolve and how it will impact our operations and our customers.”
Metro last traded at $106.03 on the TSX.
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