Metro Inc. Reports Consolidated Earnings Results for the Sixteen Weeks and Forty Weeks Ended July 7, 2018; Provides Capex Guidance for the Next Year
August 15, 2018 at 07:00 am EDT
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METRO INC. reported consolidated earnings results for the sixteen weeks and forty weeks ended July 7, 2018. For the sixteen weeks, the company reported sales of $4,636.4 million against $4,073.2 million a year ago. Operating income before depreciation and amortization and associate's earnings were $320.3 million against $301.5 million a year ago. Adjusted operating income before depreciation and amortization and associate's earnings was $345.4 million against $301.5 million a year ago. Net earnings were $167.5 million against $183.0 million a year ago. Fully diluted net earnings per share were $0.69 against $0.78 a year ago. Adjusted net earnings were $183.4 million against $165.1 million a year ago. Adjusted fully diluted net earnings per share were $0.75 against $0.70 a year ago.
For the forty weeks, the company reported Sales in the first 40 weeks of fiscal 2018 totalled $10,647.2 million versus $9,946.9 million for the corresponding period of fiscal 2017, an increase of 7.0%. Excluding $467.0 million in sales from the first 40 weeks of fiscal 2018 resulting from Jean Coutu Group, sales would have been up 2.3%. Operating income before depreciation and amortization and associate's earnings was $744.6 million against $730.3 million a year ago. Adjusted operating income before depreciation and amortization and associate's earnings was $784.7 million against $730.3 million a year ago. Net earnings were $1,573.5 million against $453.5 million a year ago. Fully diluted net earnings per share were $6.70 against $1.91 a year ago. Adjusted net earnings were $444.9 million against $417.1 million a year ago. Adjusted fully diluted net earnings per share were $1.89 against $1.75 a year ago.
After 3 quarters, CapEx totaled $200 million, as company opened 5 new stores, expanded, renovated or remodeled 20 stores and closed 4 stores for a net increase of 0.3% or 51,000 square feet.
There won't be many store openings in the next year. As company look at its combined network of Brunet and Cotou and looking to optimize that. So at least for the first year, company don't expect store -- new store openings. The renovation program, franchisees renovate their stores on an ongoing basis so that will be normal course. And the CapEx for the company, for the Cotou business, will be similar to previous years.
Metro Inc. is a food and pharmacy retailers and distributors company. The Company, through its activities as a retailer, franchisor or distributor, and manufacturer operates or supplies a network of supermarkets, discount stores and drugstores. It operates 975 food stores under several banners, including Metro, Metro Plus, Super C and Food Basics, as well as 645 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. The Metro banner, with its 328 stores including 120 Metro Plus stores in Quebec is a supermarket chain. The Super C banner operates 102 discount stores in Quebec and offers a range of grocery products. Food Basics is a discount store providing quality products to customers in 143 locations across Ontario. The Food Basics Pharmacy banner is located in 30 Food Basics grocery stores. Its Food Basics Pharmacy is a full-service pharmacy and offers professional services, such as health reminders and medical profiles, among others.
METRO INC. 
