Metro to take ~$22-million Q4 hit from freezer issues

Executive Summary

• Metro Inc. reports a mechanical failure in the refrigeration system at its Toronto frozen‑food distribution centre that halted operations on Sept. 12, 2025.
• The issue is expected to be repaired over the next several weeks, with gradual resumption of normal distribution thereafter.
• The incident carries an estimated after‑tax financial impact of $22 million for Q4 FY 2025 (primarily inventory losses) plus additional non‑recurring costs in Q1 FY 2026.

Key Details

• Mechanical failure affected multiple components of the refrigeration system; repairs are complex but progressing on schedule.
• Contingency plan remains active: all Metro and Food Basics stores in Ontario continue to be supplied through alternative logistics arrangements.
• Estimated net after‑tax impact for Q4 FY 2025: $22 million (inventory losses + direct costs).
• Additional non‑recurring expenses are anticipated in Q1 FY 2026; insurance recoveries have not been factored into the estimate.
• No timeline for full restoration beyond “coming weeks”; operations will resume gradually as repairs complete.
• Next corporate update slated for the release of Q4 FY 2025 results on November 19, 2025.

Notable Quotes

(No direct quotes were provided in the release.)