Metro reports higher earnings, calls out impact of ongoing strike in Quebec
Metro Inc. said the ongoing labour dispute at its Quebec operations will have an impact on its third quarter results, as the strike hit its fourth week.
Workers at the grocer’s produce distribution centre in Laval, Que. began the strike on Mar. 30, just ahead of the Easter long weekend, affecting produce supply at its stores in the province.
“We are obviously disappointed by this strike,” chief executive Eric La Flèche said during the company’s second quarter earnings call on Wednesday.
The retailer said the strike did not affect its second quarter earnings.
“We have been back at the bargaining table since April 8, and remain determined to reach an agreement that takes into account the needs of our employees and those of our customers, while ensuring the long-term competitiveness of our company,” he said.
The CEO declined to share details on the direct costs incurred as a result of the strike, but said further details would be provided “in due course.”
“We lost some sales. When you lose sales, you lose the bottom line,” he told analysts. “So clearly, it has had an impact.”
La Flèche said the first days of the labour dispute required some adjustments while Metro’s contingency plan, now in place, was being fully implemented. He said the stores, although not in perfect condition, are now generally well-stocked, and the retailer “can answer most of the customer needs” in Quebec stores.
He added that retail stock was “looking better every day,” with some small varieties missing from one store to another or from time to time.
“So hopefully we’ll settle the strike. The demands at the table are not reasonable and can’t be accepted,” he said.
The company released the results on Wednesday morning, reporting net earnings of $246.6 million, up 12.1 per cent from $220 million in the previous year. Fully diluted net earnings per share were $1.16, up 17.2 per cent from $0.99 in 2025.
Its sales for the quarter ended Mar. 14 were $5.113 billion, a 4.1 per cent increase from the prior year. Metro said these were positively impacted by new store openings, same-store sales growth, as well as the transfer of one significant pre-Christmas shopping day to the second quarter this year.
Food same-store sales were up 1.8 per cent, while online food sales were up 19.8 per cent over last year. Pharmacy same-store sales were up 5.1 per cent.
On an adjusted basis, its net earnings for the second quarter totalled $236.5 million, up 4.4 per cent compared with $226.6 million for the same quarter last year. Adjusted fully diluted net earnings per share were $1.11, up 8.8 per cent from $1.02 in 2025.
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