METRO REPORTS 2025 FOURTH QUARTER RESULTS
Executive Summary
- Metro reported FY 2025 sales of $22.0 B, up 3.7% YoY, and net earnings of $1.02 B, up 9.4% YoY.
- Fourth‑quarter adjusted EPS rose 10.8% to $1.13, while fully diluted EPS increased 2.0% to $1.00 despite a $22.5 M negative impact from a temporary frozen‑food distribution centre shutdown.
- The company opened four new food stores and converted two others during the quarter and expects operations at the Toronto freezer to return to normal by end‑December 2025.
Key Details
- Quarterly Sales: $5,108.7 M (↑3.4% YoY)
- Food Same‑Store Sales: ↑1.6% (Q4 2025 vs Q4 2024)
- Pharmacy Same‑Store Sales: ↑4.8% (Q4 2025 vs Q4 2024)
- Net Earnings (Q4): $217.0 M (↓1.3% YoY)
- Adjusted Net Earnings (Q4): $246.0 M (↑8.6% YoY)
- Fully Diluted EPS (Q4): $1.00 (↑2.0%)
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Adjusted Fully Diluted EPS (Q4): $1.13 (↑10.8%)
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Fiscal Year Sales: $22,006.7 M (↑3.7% YoY)
- Fiscal Net Earnings: $1,019.5 M (↑9.4% YoY)
- Fiscal Adjusted Net Earnings: $1,049.8 M (↑7.9% YoY)
- Fiscal Fully Diluted EPS: $4.63 (↑12.7%)
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Fiscal Adjusted Fully Diluted EPS: $4.77 (↑10.9%)
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Operating Income (Q4): $484.7 M (↑5.5% YoY), 9.5% of sales
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Operating Income (FY): $2,082.9 M (↑4.8% YoY), 9.5% of sales
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Gross Margin: Q4 2025 = 20.0%; FY 2025 = 19.9% (both up from 19.7% in 2024)
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Operating Expenses as % of Sales: Q4 2025 = 10.5%; FY 2025 = 10.4% (stable YoY)
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Direct Costs from Toronto Freezer Shutdown: $6.1 M (Q4) and $22.5 M impact on net earnings after tax; inventory write‑down of $24.5 M for unsalvageable frozen product inventories.
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Impairments: $20.8 M loss from Air Miles® loyalty program exit (recorded in Q2 2024).
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Net Financial Costs: $34.4 M (Q4 2025) vs $32.6 M (Q4 2024); FY 2025 total $143.8 M vs $145.7 M FY 2024.
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Effective Tax Rate: Q4 2025 = 24.1% (down from 24.5%); FY 2025 = 22.8% (down from 25.5%) due to a provincial tax holiday linked to new automated distribution centre commissioning.
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Normal Course Issuer Bid (NCIB): Up to 10 M shares authorized (Nov 27 2024 – Nov 26 2025). As of Nov 7 2025, 8.7 M shares repurchased at avg. $97.51, total $848.3 M.
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Dividend: Quarterly dividend declared $0.37 per share (unchanged from prior quarter).
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Outlook: Toronto frozen‑food centre resumed operations on Nov 10 2025; expected net earnings impact of $15–$20 M in Q1 FY 2026. Plans to open ~12 new or converted stores in FY 2026.
Notable Quotes
“We ended our 2025 fiscal year with a solid fourth quarter, delivering adjusted fully diluted net earnings per share growth of 10.8%… I am pleased to report that we resumed operations last week at our frozen distribution centre in Toronto and expect to be essentially back to normal by the end of December.” – Eric La Flèche, President & CEO
Materiality Assessment: Material – Positive (the release contains comprehensive financial results, operational updates, and forward‑looking guidance that are material to investors).