Metro CEO Eric La Fleche has expressed a cautious outlook for the company, particularly due to the impact of potential tariffs imposed by U.S. President Donald Trump and the weakening of the Canadian dollar. La Fleche highlighted that the exchange rate is one of the biggest concerns for the company, stating that a weaker Canadian dollar directly affects grocery costs. “We are already feeling the pressure,” he said at a press conference following the annual shareholders’ meeting. La Fleche noted that while Metro tries to source Canadian products, there are many items, especially in winter, that are not produced in Canada, further compounding the issue. The weakening Canadian dollar has been exacerbated by the widening interest rate gap with the U.S., alongside Trump’s looming threat of a 25% tariff, adding more strain on food prices.
Despite these challenges, La Fleche is optimistic about Metro’s future growth. He pointed to the recent investment in the company’s supply chain, which was completed in 2024, and expects the full benefits of this investment to be realized in the current year. Metro is prepared for continued growth and plans to expand its distribution network in the coming years. As part of its growth strategy, Metro plans to open 12 new stores in 2025. The company is also seeing gradual stabilization, with the impact of its customer loyalty program, Moi, expected to boost results further. This program was expanded to Ontario last year and is anticipated to drive customer engagement and sales.
Metro’s performance has been strong, as evidenced by its 2025 First Quarter Financial Report, released on January 28. The company announced an increase in its quarterly dividend to 37 cents per share, up from 33.5 cents in the same period last year. Net income for the first quarter of 2024 (ended December 21) reached $259.5 million, up from $228.5 million in the previous year. Quarterly sales totalled $5.12 billion, a rise from $4.97 billion year-over-year. Same-store grocery sales increased by 1%, and 2.4% when factoring in the change in Christmas shopping days. Additionally, pharmacy sales rose by 5.1%, with prescription drug sales seeing a 7.3% increase. Adjusted earnings per share climbed to $1.10, up from $1.02 in the previous year’s first quarter.
Despite the pressures on food costs, Metro’s solid performance and growth outlook indicate a promising future for the company as it adapts to current economic challenges.