Metro (MRU) Q2 2025 earnings summary

Executive summary

• Second quarter sales reached $4.9 billion, 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 5.2% (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%, driven by Click & Collect and third-party marketplaces.

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

Financial highlights

• Gross margin improved to 20% of sales, up from 19.9% a year ago.

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

• Operating expenses were $521.3 million, representing 10.6% of sales, slightly down from 10.7%.

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

• Depreciation and amortization rose 5.1% to $136.1 million, reflecting supply chain and automation investments.

Outlook and guidance

• Medium to long-term EPS growth target of 8%-10% is maintained.

• Management remains confident in growth despite macroeconomic volatility and tariff uncertainties.

• Focus remains on efficiency gains and service improvements following major supply chain investments.

• Continued emphasis on value, private label, loyalty offers, and supply chain partnerships.

• No immediate concerns about near-term outlook; growth targets remain intact.