Q4 2025 Metro Inc Earnings Call Transcript
Key Points
- Metro Inc (MTRAF) reported a 3.4% increase in total sales for Q4, reaching $5.1 billion, driven by higher sales in discount and pharmacy retail networks.
- The company achieved a gross margin of 20% of sales, up from 19.7% in the same quarter last year, attributed to shrink improvement and productivity gains.
- Adjusted EBITDA increased by 6.8% year over year, reaching 9.6% of sales, indicating strong operational performance.
- Metro Inc (MTRAF) successfully resumed operations at its Toronto frozen distribution center, with expectations to return to normal by the end of December.
- Online sales grew by 19.8% in the quarter, supported by the expansion of click-and-collect services and home delivery options.
- The mechanical issue at the Toronto frozen distribution center resulted in a $22.5 million after-tax financial impact on Q4, with additional costs expected in Q1 of F26.
- Operating expenses increased by 4% year over year, partly due to $6.1 million in direct costs related to the temporary shutdown of the freezer.
- The company continues to face inflationary pressures, particularly in the meat category, with vendor price increase requests exceeding typical levels.
- Food same-store sales were negatively impacted by about 30 basis points due to the freezer shutdown and a previous LCBO strike.
- The competitive environment remains intense, with new store openings contributing to increased market competition and impacting same-store sales growth.
Good morning, ladies and gentlemen, and welcome to the Metro Inc. 2025 fourth-quarter results conference call. (Operator Instructions) Also note that the call is being recorded on Wednesday, November 19, 2025.
I would now like to turn the conference over to Sharon Kadoche, Director, Investor Relations and Corporate Finance. Please go ahead.
Good morning, everyone, and thank you for joining us today. Our comments will focus on the financial results of our fourth quarter, which ended on September 27. With me today is Mr. Eric La Fleche, President and CEO; Nicolas Amyot, Executive VP and CFO; Marc Giroux, Chief Operating Officer; and Jean-Michel Coutu, President of the Pharmacy Division. During the call, we will present our fourth quarter results and comment on its highlights.
We will then be happy to take your questions. Before we begin, I would like to remind you that we will use in today's discussion different statements that could be construed as forward-looking information. In general, any
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