Q1 2026 Metro Inc Earnings Call Transcript
Key Points
- Metro Inc (MTRAF) reported a 3.3% increase in total sales, reaching $5.3 billion for the first quarter.
- Food same-store sales grew by 1.6%, and pharmacy same-store sales increased by 3.9%, with prescription sales up by 5.1%.
- Adjusted EBITDA rose by 4.7% year over year, reaching 9.5% of sales.
- The company successfully resumed operations at its frozen food distribution center in Toronto, overcoming previous disruptions.
- Metro Inc (MTRAF) declared a quarterly dividend increase of 10.1%, marking the 32nd consecutive year of dividend growth.
- The temporary shutdown of the frozen food distribution center in Toronto resulted in direct costs of $21.6 million pretax.
- Operating expenses increased by 5.5% year over year, partly due to costs associated with the freezer issue.
- Net financial costs rose to $37.3 million, driven by higher interest on net debt and previous income tax resolutions.
- The effective tax rate increased to 25% from 18.2% in the previous year, impacting net earnings.
- Despite sales growth, the company faced challenges from persistent food inflation and intense competition in the market.
Good afternoon, ladies and gentlemen, and welcome to Metro Inc. 2026 first-quarter results conference call. (Operator Instructions) Also note that this call is being recorded on January 27, 2026. I would now like to turn the conference over to Sharon Kadoche, Director of Investor Relations and Corporate Finance. Please go ahead.
Good afternoon, everyone, and thank you for joining us today. Our comments will focus on the financial results of our first quarter, which ended on December 20. 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 first-quarter results and comment on the 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,
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