Metro has ended its 2014 financial year with a stronger fourth-quarter profit and higher sales at its grocery stores.
The Montreal-based retailer had a $115.6-million profit in the fourth quarter of its 2014 financial year, which was above analyst estimates.
The profit was up 6.2% from an adjusted profit of $108.9 million a year earlier, after excluding a non-recurring item related to a restructuring of its Ontario retail network last year.
Without adjustments, Metro’s net income was up 45.4% from $79.5 million the fourth quarter of 2013.
Its revenue in the fourth quarter was up 3.9% from a year earlier, rising to $2.7 billion in the three months ended Sept. 27, while Metro’s same-store sales were up 3.1%.
Analysts had estimated $111.63 million of adjusted profit, or $110 million of net income and $2.66 billion in revenue.
For the full financial year ended Sept. 27, Metro had $11.6 billion of revenue, up 1.7% from $11.4 billion in fiscal 2013, $456.2 million of net income, down 35.2% from $703.9 million, and $460.9 million of adjusted net income from continuing operations, up from $460.7 million in fiscal 2013.
The 2013 results included a $266.4-million gain from Metro’s sale of its investment in Alimentation Couche-Tard, after taxes, and a $29.4 million charge after taxes in the fourth quarter for the reorganization of its Ontario network.
During the fourth quarter of 2014, Metro complied the acquisition of the Premiere Moisson bakery business, which accounted for about half a percentage point of increased sales.
“We are encouraged by the improved sales performance across all banners,” said Eric La Fleche, Metro’s president and chief executive officer.
