Update: Toronto Frozen Food Distribution Centre

Executive Summary

• METRO Inc. reports a mechanical failure in the refrigeration system at its Toronto frozen food distribution centre, interrupting operations since September 12, 2025.
• The issue is expected to be repaired over the next few weeks, with gradual resumption of normal activities thereafter.
• The incident carries an estimated net after‑tax financial impact of $22 million for Q4 FY 2025 (primarily inventory losses), plus additional non‑recurring costs anticipated in Q1 FY 2026; insurance recoveries are not included.

Key Details

• Mechanical failure affected multiple components of the refrigeration system; repairs are complex but progressing on schedule.
• Contingency plan remains active, ensuring that all Metro and Food Basics stores in Ontario continue to be stocked.
• Estimated net after‑tax impact: $22 million for Q4 FY 2025 (inventory losses + direct costs).
• Additional non‑recurring expenses will be incurred in Q1 FY 2026; exact amount not disclosed.
• Potential insurance recoveries are excluded from the $22 M estimate.
• Next operational update will be provided alongside METRO’s Q4 FY 2025 results scheduled for November 19, 2025.

Notable Quotes

(No direct quotes were included in the release.)