Metro (MRU) Q4 2024 earnings summary

Executive summary

• Q4 sales were CAD 4.94 billion, down 2.6% year-over-year, but up 5.7% on a comparable 12-week basis due to last year's labor disruption and extra week.

• Same-store sales rose 2.2% in food and 5.7% in pharmacy, with online food sales up 27.6% year-over-year for the comparable 12-week period.

• Fiscal 2024 sales reached $21.2 billion, up 2.4% year-over-year, and adjusted net earnings were $972.9 million, down 3.3%.

• Supply chain modernization, a seven-year, nearly CAD 1 billion investment, was completed, including new automated distribution centers in Ontario and Quebec.

• Moi Rewards launched in Ontario, gaining over 1 million members in under four weeks.

Financial highlights

• Gross margin improved to 19.7% from 19.5% year-over-year.

• Operating expenses were 10.4% of sales, down from 10.7% last year.

• EBITDA reached CAD 459.6 million (9.3% of sales), up 2.6% year-over-year.

• Adjusted net earnings were CAD 226.5 million in Q4 (down 1% year-over-year); adjusted EPS rose 3% to CAD 1.02.

• Fiscal 2024 net earnings were $931.7 million (down 8.5%), and adjusted EPS was $4.30 (unchanged year-over-year).

Outlook and guidance

• Fiscal 2024 results met guidance; gradual profit growth expected in 2025.

• Medium/long-term targets: sales growth of 2%-4%, operating income growth of 4%-6%, and adjusted EPS growth of 8%-10%.

• Inflation expected to normalize around 2% in 2025.

• CapEx for 2025 projected at CAD 550-600 million, with some 2024 projects rolling over.