Metro’s third-quarter results fall short of the Street’s expectations despite food and pharmacy growth

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 rose 3.3 per cent year-over-year to $6.87-billion, up from $6.65-billion in the same quarter last year. The Street had projected $6.92-billion.

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, rising 12.6 per cent year-over-year (from $1.35). That fell a penny short of expectations on the Street.

With files from Reuters