Metro (TSE:MRU), one of the largest Canadian grocery retailers, reported its Q2-2023 earnings results earlier today. Metro’s results were positive, with revenues and earnings per share slightly exceeding expectations. As a result, the stock is in the green today.
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Revenues for Q2 2023 reached approximately C$4.555 billion, just ahead of expectations of C$4.547 billion and up 6.6% compared to last year’s figure of C$4.274 billion. Additionally, earnings per diluted share came in at C$0.96, above expectations of C$0.94 and a 14.3% increase from last year’s EPS of C$0.84.
Moreover, operating income before depreciation and amortization for the quarter came in at C$447.3 million, 8.0% higher year-over-year. Meanwhile, the company’s gross margin remained steady at 20.1%.
Notably, food same-store sales grew by 5.8%, while pharmacy same-store sales increased by 7.3%. What was also impressive was that online food sales increased by 41% compared to last year, driven mainly by new partnership sales.
Looking at the first two quarters of Fiscal 2023, revenue reached C$9.225 billion, up 7.4% year-over-year, while adjusted diluted net earnings per share were C$1.96, a 14% increase from C$1.72 in 2022.
Metro’s President and CEO, Eric La Flèche, expressed satisfaction with the quarterly results and highlighted Metro’s plans to invest in its people, retail network, and supply-chain modernization to achieve its long-term growth objectives. Lastly, the company expects to introduce its loyalty program, MOİ, this spring.
Is Metro Stock a Buy, According to Analysts?
According to analysts, Metro stock comes in as a Hold based on six unanimous Hold ratings assigned in the past three months. The average MRU stock price target of C$78.17 implies 3.4% upside potential.
