Metro (MRU) Q3 2025 earnings summary

Executive summary

• Q3 sales reached $6.871 billion, up 3.3% year-over-year, with food same-store sales up 1.9% and pharmacy same-store sales up 5.5%.

• EBITDA grew 5.7% to $656 million, and adjusted EPS increased 12.6% to $1.52; fully diluted EPS rose 13.0% to $1.48.

• Gross margin improved to 19.8% from 19.6% last year, driven by productivity gains and shrink improvement.

• Online sales rose 14.4%, supported by expanded delivery partnerships and Click and Collect services.

• Five new food stores were opened, supporting discount banner expansion.

Financial highlights

• Adjusted net earnings were $332 million, up 8.8% year-over-year; net earnings reached $323 million, up 9.0%.

• Operating expenses were $702 million, or 10.2% of sales, consistent with last year.

• Net financial costs decreased to $45.3 million from $46.6 million, mainly due to lower interest expense.

• Capital expenditures totaled $146 million, down $41 million, reflecting completion of automated distribution centers.

• Effective tax rate dropped to 24.1% from 25.9%, aided by a provincial tax holiday.

Outlook and guidance

• Continued focus on discount banner expansion, with 14 new stores planned for fiscal 2025.

• Management expects modest SG&A leverage in coming quarters as duplicate costs have been lapped.

• Sustained investments in retail networks and supply chain are expected to drive long-term growth.

• Focus shifts to realizing efficiency gains after major supply chain investments.

• Efforts to deliver value through merchandising, private label, and loyalty programs continue amid economic uncertainty.