The following is a summary of the Metro Inc. (MTRAF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Metro Inc. reported Q2 2024 total sales of $4.655 billion, a 2.2% increase year over year.
Food same-store sales were up 0.2% after seasonality adjustment. Pharmacy same-store sales increased by 5.9% for the quarter
Operating expenses were $496.2 million, a 6.1% increase from the previous year, mainly due to the start-up of a new automated distribution center.
EBITDA was $439.1 million, down 1.8% year over year. Adjusted net earnings decreased by 8.4% compared to the previous year, to $206.4 million.
Gross margin was down by 16 basis points year-over-year, affected by factors such as a competitive market and inefficiencies in Terrebonne.
Business Progress:
Four superstores were opened, expansions were carried out, and five stores were renovated, resulting in a 1.1% increase in food retail network size.
511 food stores and 109 pharmacies were equipped with self-checkout technology, while 336 food stores and 48 pharmacies received electronic shelf labels.
Nearly 4 million shares were repurchased for $276.9 million, and the transition to a new automated fresh and frozen distribution center was mostly completed.
A new loyalty program is planned to be launched across Quebec, Ontario, and New Brunswick by the end of the year.
Online sales continue to grow due to third-party partnerships and their own click-and-collect services. Expansion of discount and click-and-collect services is being considered as a strategic move for the future.
More details: METRO INC IR
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