Overview

* Metro Q4 sales rose 3.4% but slightly missed analyst expectations

* Adjusted EPS for Q4 beats consensus, rising 10.8%

* Net earnings impacted by $22.5 mln due to Toronto distribution centre shutdown

Outlook

* Metro expects $15-20 mln impact on Q1 2026 net earnings from distribution center shutdown

* Company plans to open about a dozen new or converted stores next fiscal year

* Metro aims for efficiency gains in supply chain and store network

Result Drivers

* DISCOUNT AND PHARMACY SALES - Higher sales in discount and pharmacy retail networks drove Q4 revenue growth

* DISTRIBUTION CENTRE SHUTDOWN - Temporary shutdown of Toronto frozen food distribution centre negatively impacted net earnings by $22.5 mln

* PRODUCTIVITY GAINS - Productivity improvements at food distribution centres and shrink improvement in stores contributed to margin growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Slight C$5.11 C$5.12

Miss* bln bln (8

Analysts

)

Q4 Beat C$1.13 C$1.10

Adjusted (8

EPS Analysts

)

Q4 EPS C$1

Q4 C$246

Adjusted mln

Net

Income

Q4 Net C$217

Income mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy."

* Wall Street's median 12-month price target for Metro Inc ( MTRAF ) is C$106.00, about 7.7% above its November 18 closing price of C$97.85

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)