By Adriano Marchese
Metro reported a substantial increase in profit and revenue during its third fiscal quarter, surpassing analyst expectations. However, the company is currently facing a strike by its workers in the Greater Toronto Area, who are demanding better wages.
For the 16-week period ending on July 1, the Canadian food retailer operating in Quebec and Ontario announced earnings of 346.7 million Canadian dollars ($258.4 million), equivalent to C$1.49 per share. This represents an improvement from the previous year’s quarter, where earnings were C$275 million or C$1.14 per share.
On an adjusted basis, earnings reached C$1.35 per share, surpassing analyst expectations of C$1.29 per share, according to a poll conducted by FactSet.
Additionally, sales experienced a 9.6% increase, reaching C$6.43 billion, outperforming analyst estimates of C$6.2 billion. The revenue growth can be attributed to high inflation rates and customers’ preference for the company’s discount offerings.
In July, approximately 3,700 union workers from 27 Metro locations went on strike, demanding fair wages amidst the company’s record-breaking profits and revenue.
Chief Executive Eric La Fleche expressed his desire to find a resolution to the dispute while ensuring the long-term competitiveness of the company.
