Mining & Metals
METRO Delivers Improved Q2 Earnings and Revenues, But Says Quebec Strike Will Impact In Q3
METRO (MRU.TO), a food and pharmacy player in Quebec and Ontario, on Wednesday reported improved net earnings and sales for the second quarter, but the company warned a strike at its produce distribution centre in Quebec will hurt third quarter results even as it expands it discount store networkThe company said that net earnings for the second quarter of fiscal 2026 ended March 14, 2026, were C$246.6 million compared with $220 million for the corresponding quarter of 2025, while second quarter fully diluted net earnings per share were $1.16 per share compared with $0.99 per share in the corresponding year-ago quarter.For the second quarter, the company reported adjusted fully diluted net earnings per share of $1.11 per share, compared to $1.02 per share in the corresponding year-ago quarter. Consensus forecast for Non GAAP EPS at FactSet was $1.11 per share.The company reported second quarter sales of $5.11 billion, compared to $4.90 billion in the year-ago quarter. Consensus forecasts for sales at FactSet was $5.07 billion.The company said that sales 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."With regards to the strike at its produce distribution centre in Laval which began on March 30, METRO said that labour dispute will have an impact on its third quarter results and added that it will provide further details in due course.The company also said that, on April 21, 2026, the board of directors declared a quarterly dividend of $0.4075 per share, unchanged from the prior quarter."We delivered solid second quarter results, driven by strong revenue growth and disciplined expense control, as our teams continue to offer the best possible value to customers. across all our banners," said Eric La Fleche, President and CEO. "We are very pleased with the expansion of our discount store network, which continues to fuel food sales growth, as well as with the sustained sales momentum in our pharmacy business. We are disappointed with the strike at our produce distribution center in Laval, our contingency plan is in place and our Quebec stores are now generally well stocked. We look forward to a resolution that considers the needs of our employees and customers while ensuring the long-term competitiveness of our company."Shares in MRU were up 0.7% to $92.88 in Canada trade yesterday.
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