Photo: Marie-France Coallier The Duty
The officers of Metro have indicated that the company had posted a performance in line with its expectations for its fiscal year 2018.
Metro has had to deal with the pressure of suppliers to increase prices. “We have accepted some increases from our suppliers due to tariffs,” said Tuesday the chief executive of Metro, Eric La Flèche, during a press conference that followed the annual meeting of the shareholders of the company, in Montreal.
Mr. Arrow had indicated in August that suppliers exerted pressure on the company to accept a higher price, in the context of the war of rates that are current with the United States. At the time, Metro was considering these requests, and to negotiate the price. Since then, the grocer has agreed to price increases in certain categories, such as non-alcoholic beverages, produced in aluminum cans affected by the tariffs.
The u.s. government imposes tariffs on canadian products in steel and aluminum since the 1st of June. A month later, Canada responded with tariffs on a number of u.s. products. “Production costs have increased for manufacturers,” said Mr. Arrow, adding that the entire market, including Metro, had to accept an increase in costs.
These price increases have not necessarily been transmitted to consumers, ” added Mr. The Arrow, noting that the soft drinks sector was very competitive. “In some categories may be, in others not necessarily. “
Meanwhile, the sector has been affected by an outbreak of the bacterium E. coli on a large scale, at a time when the grocer began its fiscal year 2019. Metro has experienced “significant losses in warehouses, [and] in stores” in the wake of a public warning recommending that consumers avoid eating romaine lettuce due to contamination with theE. coli, was recalled by Mr. Arrow.
Despite this and other difficulties, such as low inflation, the increase in the minimum wage and the rising costs of transportation, the executive officers of Metro have indicated that the company had posted a performance in line with its expectations for its fiscal year 2018. Metro has announced a profit by $ 203.1 million in the first quarter and increased its dividend. This one goes to 20 ¢ per share, compared to 18 ¢ per share previously. His earnings amounted to 79 ¢ per share for the 12 weeks ended 22 December, against a profit of near $ 1.3 billion, or 5,67 $ per share, for the same period a year earlier. At that time, she had benefited from the sale of its stake in Alimentation Couche-Tard to assist in the financing of its acquisition of the Jean Coutu Group.
On an adjusted basis, Metro has achieved a profit of 172.2 million, or 67 ¢ per share in the most recent quarter, up compared to 126.7 million, or 55 ¢ per share, a year earlier. Sales were $ 3,98 billion, up from $ 3.11 billion a year earlier.