Metro (MRU) Q2 2025 earnings summary

Executive summary

• Second quarter sales reached $4,909.9 million, up 5.5% year-over-year, with strong growth in both food and pharmacy segments and a focus on value and Canadian products.

• Food same-store sales rose 5.3% (3.9% adjusted for calendar shift), and pharmacy same-store sales increased 7%.

• Adjusted net earnings grew 9.8% to $226.6 million, with adjusted EPS up 12.1% to $1.02; net earnings were $220.0 million, up 17.6%.

• Online sales surged 26.2%, driven by Click & Collect and third-party marketplaces.

• Continued investments in retail networks and supply chain are expected to drive future growth.

Financial highlights

• EBITDA totaled $461 million, up 5% year-over-year, or 6.8% excluding asset disposal gains/losses.

• Gross margin improved to 20% of sales from 19.9% last year.

• Operating expenses were $521.3 million (10.6% of sales), slightly lower as a percentage of sales than last year.

• Net financial costs decreased to $33.4 million, mainly due to lower interest expense.

• Effective tax rate dropped to 24.5% from 26.5%, aided by a provincial tax holiday.

Outlook and guidance

• Maintains medium to long-term average annual EPS growth target of 8%-10%.

• Focus remains on efficiency gains, value, private label, loyalty offers, and supply chain partnerships.

• Inflationary pressures expected to persist due to FX and commodity prices; counter-tariffs not yet materially impacting inflation.

• Anticipates continued growth but acknowledges macroeconomic volatility and uncertainty.