Metro Inc. (TSX:MRU) reported a year-over-year decline in profits for the fiscal third quarter, which narrowly beat analysts’ estimates.
For the three months ending July 6, the Canadian grocery chain posted adjusted net earnings of $305 million, down 3.1% from the year-ago quarter, while adjusted earnings per share (EPS) were flat at $1.35.
Analysts had expected EPS of $1.34.
Sales were up 3.5% year-over-year at $6.652 billion from $6.428 billion.
Food same-store sales increased 2.4%, down from 9.4% in the third quarter of 2023.
Pharmacy same-store sales increased 5.2%, compared to a 5.9% increase in Q3 2023, with prescription drugs up 6.3% and front-store sales up 3%, driven by over-the-counter products, cosmetics, and health and beauty.
“We recorded solid comparable sales growth in the third quarter, on top of a very strong quarter last year, reflecting effective merchandising and good execution in our food and pharmacy banners,” Metro CEO Eric La Flèche said in a statement.
Metro’s Toronto-listed shares traded 0.4% lower at $81 in early trade on Wednesday.