Revenues and profits are up at grocer Metro, which says food inflation in its stores is approaching 8%.
In the third quarter ended July 1, the owner of the Metro, Super C and Jean Coutu brands posted adjusted earnings up 10.9% to $314.8 million. Adjusted diluted earnings per share were $1.35.
Revenue rose 9.6% to $6.4 billion. Gross margin was 19.6%, compared to 19.8% for the same period last year.
Prior to the earnings release, analysts had expected earnings per share of $1.29 and revenue of $6.2 billion, according to data firm Refinitiv.
The company reports that the labor dispute for employees at the Toronto distribution center cost $7.7 million during the quarter. The launch of its new loyalty program resulted in costs of 5.1 million.
The company’s net profit, for its part, increased by 26.1% to 346.7 million. Metro considers that, exceptionally, the net profit does not reflect its activities since it includes an accounting item related to obtaining a capital loss deduction for the years 2012 and 2014. The tax authorities had previously refused the deduction that Metro company finally obtained.
