2024 FIRST QUARTER HIGHLIGHTS
- Sales of
$4,974.2 million , up$6 .5% - Food same-store sales(1) up 6.1%, and up 3.4% when adjusting for the Christmas week shift(3)
- Pharmacy same-store sales(1) up 3.9%
- Net earnings of
$228.5 million , down 1.1%, and adjusted net earnings(1) of$235.0 million , down 1.1% - Fully diluted net earnings per share of
$0.99 , up 2.1%, and adjusted fully diluted net earnings per share(1) of$1.02 , up 2.0% - Declared dividend of
$0.3350 per share, up 10.7% versus last year
12 weeks / Fiscal Year | ||||||
(Millions of dollars, except for net earnings per share) | 2024 | % | 2023 | % | Change (%) | |
Sales | 4,974.2 | 100.0 | 4,670.9 | 100.0 | 6.5 | |
Operating income before depreciation and amortization | 468.1 | 9.4 | 462.0 | 9.9 | 1.3 | |
Net earnings | 228.5 | 4.6 | 231.1 | 4.9 | (1.1) | |
Fully diluted net earnings per share | 0.99 | — | 0.97 | — | 2.1 | |
Adjusted net earnings(1) | 235.0 | 4.7 | 237.6 | 5.1 | (1.1) | |
Adjusted fully diluted net earnings per share(1) | 1.02 | — | 1.00 | — | 2.0 |
PRESIDENT'S MESSAGE
"We recorded solid results in the first quarter as our teams continued to deliver good value to customers in all our food and pharmacy banners. Our discount food stores continue to grow their sales at a faster pace, private label penetration reached new heights and our MOI loyalty program now has 2.5 million members, double the size of Metro&Moi. The opening our new 600,000 square feet automated fresh and frozen distribution center in
OPERATING RESULTS
SALES
Sales in the first quarter of Fiscal 2024 ended on
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
This earnings measurement excludes financial costs, taxes, depreciation and amortization.
Operating income before depreciation and amortization for the first quarter of Fiscal 2024 totalled
Gross margin(1) for the first quarter of Fiscal 2024 was 19.6%, which is the same percentage as the corresponding quarter of 2023.
Operating expenses as a percentage of sales for the first quarter of Fiscal 2024 were 10.2% versus 9.8% in the corresponding quarter of 2023. The increase in operating expenses is mainly due to the commissioning of our new automated distribution centre for fresh and frozen products in
DEPRECIATION AND AMORTIZATION
Total depreciation and amortization expense for the first quarter of Fiscal 2024 was
NET FINANCIAL COSTS
Net financial costs for the first quarter of Fiscal 2024 were
INCOME TAXES
The income tax expense of
NET EARNINGS AND ADJUSTED NET EARNINGS(1)
Net earnings for the first quarter of Fiscal 2024 were
Net earnings and fully diluted net earnings per share (EPS) adjustments(1)
12 weeks / Fiscal Year | ||||||||
2024 | 2023 | Change (%) | ||||||
Net earnings | Fully diluted | Net earnings | Fully diluted (Dollars) | Net earnings | Fully | |||
Per financial statements | 228.5 | 0.99 | 231.1 | 0.97 | (1.1) | 2.1 | ||
Amortization of intangible assets acquired in | 6.5 | 6.5 | ||||||
Adjusted measures(1) | 235.0 | 1.02 | 237.6 | 1.00 | (1.1) | 2.0 |
NORMAL COURSE ISSUER BID PROGRAM
Under the current normal course issuer bid program, the Corporation may repurchase up to 7,000,000 of its Common Shares between
DIVIDENDS
On
FORWARD-LOOKING INFORMATION
We have used, throughout this report, different statements that could, within the context of regulations issued by the Canadian Securities Administrators, be construed as being forward-looking information. In general, any statement contained herein that does not constitute a historical fact may be deemed a forward-looking statement. Expressions such as "continue", "expect" and other similar expressions are generally indicative of forward-looking statements. The forward-looking statements contained herein are based upon certain assumptions regarding the Canadian food and pharmaceutical industries, the general economy, our annual budget, as well as our 2024 action plan.
These forward-looking statements do not provide any guarantees as to the future performance of the Corporation and are subject to potential risks, known and unknown, as well as uncertainties that could cause the outcome to differ significantly. Risk factors that could cause actual results or events to differ materially from our expectations as expressed in, or implied by, our forward-looking statements are described and discussed under the "Risk Management" section in our Annual Report 2023.
We believe these statements to be reasonable and pertinent as at the date of publication of this report and represent our expectations. The Corporation does not intend to update any forward-looking statement contained herein, except as required by applicable law.
NON-GAAP AND OTHER FINANCIAL MEASUREMENTS
In addition to the International Financial Reporting Standards (IFRS) measurements provided, we have included certain non-GAAP and other financial measurements. These measurements are presented for information purposes only. They do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measurements presented by other public companies.
National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure sets out specific disclosure requirements for non-GAAP financial measures, non-GAAP ratios, and other financial measures, which are capital management measures, supplementary financial measures, and total of segments measures, as defined in the Instrument (together the "specified financial measures").
The specified financial measures we disclose in our documents made available to the public are presented by measurement categories below.
NON-GAAP FINANCIAL MEASURES
Adjusted net earnings is a non-GAAP financial measurement that with respect to its composition is adjusted to exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in our consolidated financial statements.
For measurements depicting financial performance, we believe that presenting earnings adjusted for these items, which are not necessarily reflective of the Corporation's performance, leaves readers of financial statements better informed thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring.
NON-GAAP RATIOS
Adjusted fully diluted net earnings per share is a non-GAAP ratio by where a non-GAAP financial measure is used as one or more of its components.
We believe that presenting this ratio, in which a non-GAAP financial measurement is used as one or more of its components, leaves readers of financial statements better informed as to the current period and corresponding prior year's period's performance, thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring.
SUPPLEMENTARY FINANCIAL MEASURES
The supplementary financial measures listed below are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Corporation.
Food same-store sales and pharmacy same-store sales (including total, front-store and prescription drugs) are defined as comparable retail sales of stores with more than 52 consecutive weeks of operations, including relocated, expanded and renovated locations.
Online food sales are the sum of sales made from all our online channels.
Gross margin ratio is calculated by dividing gross profit by sales.
OUTLOOK(2)
With the launch of our new state-of-the-art automated distribution centre in
CONFERENCE CALL
Financial analysts and institutional investors are invited to participate in a conference call for the 2024 first quarter results at
Notice to readers: METRO INC. first quarter of 2024 interim condensed consolidated financial statements and management's discussion and analysis are available on the Internet at www.corpo.metro.ca - Corporate Site - Investors - 2024 Quarterly Results - 2024 First Quarter Results.
(1) | See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements" |
(2) | See section on "Forward-looking Information" |
(3) | This measure compares same-store-sales(1) for the 12-week period ending |
SOURCE
© Canada Newswire, source