Q4 2024 Metro Inc Earnings Call Transcript
Key Points
- Metro Inc (MTRAF) reported a solid fourth quarter with strong comparable sales growth in both food and pharmacy sectors.
- The company completed its seven-year, nearly $1 billion supply chain modernization project, enhancing future growth capacity and efficiency.
- Online sales grew by 27% on a 12-week comparable basis, driven by third-party partnerships and the expansion of click-and-collect services.
- The pharmacy division delivered strong performance with a 5.7% increase in same-store sales, supported by organic growth and specialty medications.
- Metro Inc (MTRAF) launched the Moi Rewards program in Ontario, achieving over 1 million enrollments in less than four weeks, indicating strong customer engagement.
- Total sales decreased by 2.6% compared to the same period last year, although this was partly due to a 53-week year in 2023.
- Net financial costs increased due to higher debt levels and interest rates, impacting overall financial performance.
- Adjusted net earnings slightly decreased by 1% compared to the previous year, reflecting challenges in maintaining profitability.
- The company faces ongoing competitive pressures in both food and pharmacy sectors, requiring effective promotional strategies to maintain market share.
- E-commerce growth, while strong, remains less profitable than brick-and-mortar operations, posing a challenge to overall margin improvement.
Good morning, ladies and gentlemen, and welcome to the Metro Inc 2024 fourth quarter results conference call. (Operator Instructions) Also note that this call is being recorded on November 20, 2024.
I would now like to turn the conference over to Sharon Kadoche, Director, Investor Relations and Treasury. Please go ahead.
Thank you. Good morning, everyone, and thank you for joining us today. Our comments will focus on the financial results of our fourth quarter, which ended on September 28. With me today is Mr. Eric La Fleche, President and CEO; Francois Thibault, Executive VP and CFO; Marc Giroux, Executive VP and COO; and Jean-Michel Coutu, President of the Pharmacy division.
During the call, we will present our fourth quarter results and comment on its highlights. We'll then be happy to take your questions. Before we begin, I would like to remind you that we will use in today's discussion different statements that could be construed as forward-looking information. In
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