Grocery and drugstore retailer Metro reports $323M Q3 profit, up from $296M

Metro Inc. reported a third-quarter profit of $323.0 million, up from $296.2 million in the same quarter last year. The grocery and drugstore retailer says its profit amounted to $1.48 per diluted share for the 16-week period ended July 5, up from $1.31 per diluted share a year ago. Sales for the quarter totalled $6.87 billion, up from $6.65 billion in the same quarter last year. Metro chief executive Eric La Flèche says the results were marked by solid comparable sales growth in food and pharmacy, and good cost control.  Food same-store sales were up 1.9 per cent, while pharmacy same-store sales were up 5.5 per cent, with a 6.2 per cent increase in prescription drugs and a 4.0 per cent increase in front-store sales, primarily driven by over-the-counter products, cosmetics, and health and beauty. On an adjusted basis, Metro says it earned $1.52 per diluted share in its latest quarter, up from an adjusted profit of $1.35 per diluted share in the same quarter last year. This report by The Canadian Press was first published Aug. 13, 2025. Companies in this story: (TSX:MRU)

Recent volatility in Metro Inc. (MRU.TO) share price has been caused by the following factors:

• Mixed Q3 2025 Earnings: Metro announced respectable growth in its third-quarter results, with sales up 3.3% to CA$6.9 billion and earnings per share up 13%. However, these results essentially met expectations rather than beating them, and the stock declined sharply by about 6.6% following the earnings release. Investors appeared somewhat disappointed by the lack of upside surprise or new guidance, triggering short-term selling pressure.
• Stable but not outstanding analyst forecasts: Following the latest financial results, analysts did not update their earnings or revenue targets for the coming year. This signaled expectations for steady, rather than rapid, growth—leading some investors to rotate out of defensive names like Metro in search of higher returns elsewhere.
• General market sentiment and sector rotation: The Canadian market is experiencing a rally, partially driven by speculation about future interest rate cuts. As risk appetite increases, defensive stocks such as grocers and pharmacy chains have seen relative volatility due to changing investor preferences and fund flows.
• Technical factors: The stock issued both buy and sell signals recently, with some resistance levels tested after a pivot bottom was found in early July. Metro’s otherwise controlled share price movements turned more volatile as trading volumes fell together with price during the recent decline.

 Metro’s recent volatility is mainly due to investor reactions to “in-line” earnings, unchanged analyst outlooks, sector rotation toward riskier assets, and technical trading patterns. No significant negative company-specific news was noted, so swings are mainly driven by short-term market behavior rather than long-term business fundamentals.