Q2 2026 Metro Inc Earnings Call Transcript
Key Points
- Metro Inc (MTRAF) reported a 4.1% increase in sales, reaching $5.1 billion, driven by new store openings and same-store sales growth.
- Pharmacy same-store sales grew by 5.1%, with prescription sales up by 6.1% and front store sales by 2.8%.
- The company's gross margin improved to 20.1% of sales, partly due to productivity gains in distribution centers.
- Adjusted EBITDA increased by 6% year-over-year, reaching 9.6% of sales.
- Online sales grew by 19.8%, supported by third-party marketplaces and the expansion of click and collect services.
- A strike in Quebec operations impacted produce distribution and sales, particularly around Easter, though the financial impact is yet to be fully assessed.
- Operating expenses increased by 3.4% year-over-year, reflecting ongoing cost pressures.
- Net financial costs rose to $37.3 million, primarily due to higher interest expenses on net debt.
- Fuel price increases are expected to add approximately $5 million per quarter to distribution costs, potentially impacting margins.
- The competitive environment remains intense, with flat to declining market tonnage indicating consumer pressure.
Good morning, ladies and gentlemen, and welcome to the Metro Inc 2026 second quarter results conference call. (Operator Instructions) Also note that this call is being recorded on April 22, 2026.
And I would 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 second quarter, which ended on March 14. 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 second 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
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