Metro posts higher profit in fourth quarter, revenues also expand

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(The Canadian Press)

By The Canadian Press

MONTREAL - Effective merchandising and ongoing efforts to improve its Ontario operations allowed Metro Inc. (TSX: MRU-A.TO) to boost profits and expand revenues in the fourth quarter of fiscal 2009, the grocer said Wednesday.

The Montreal-based company reported net income Wednesday of $84.4 million or 77 cents per share for the quarter ended Sept. 26. That was up from year-ago profit of $72.5 million or 65 cents per share.

After excluding non-recurring costs of $2.3 million to convert some Ontario supermarkets to the Metro banner, the company posted adjusted net earnings of $85.9 million. This marked an 18.5 per cent increase from the year before.

Adjusted earnings per share were up 20 per cent to 78 cents.

Analysts had predicted earnings of 73 cents per share before items and revenue of $2.53 billion, according to estimates compiled by Thomson Reuters.

Metro, which includes the A&P, Dominion and Food Basics banners, also increased its dividends by 10 per cent to 14 cents per share.

Revenues for the quarter totalled $2.53 billion, up from $2.47 billion last year. Metro said its same-store sales increased by two per cent during the quarter, helping to boost overall revenue.

"We are proud to have posted record net earnings in every quarter of fiscal 2009. I congratulate all our employees and retailers for their great work," said Eric La Fleche, Metro's president and chief executive officer.

Fleche pointed out that in addition to converting five conventional banners to the Metro brand in Ontario, the company had also acquired 15 GP stores following the quarter's end, strengthening its position in Eastern Quebec.

"Despite the challenging economic environment, we are confident that we will continue to grow in the coming year," he said.

Net earnings for the fiscal year totalled $354.4 million or $3.19 per share, marking an increase from profits of $292.2 million or $2.58 per share posted a year ago.

Sales for fiscal 2009 came to $11.2 billion, marking a 4.4 per cent increase from last year.

In a separate announcement made on Wednesday, Metro also said it created a joint venture with Dunnhumby, an international consulting and marketing-services organization, to help improve its customer loyalty and boost sales.

Metro's shares rose $1.24 or 3.4 per cent to $37.34 in morning trading on the Toronto Stock Exchange.