A rise in fourth-quarter profits has not been enough to stem falling annual earnings at Canadian retailer Metro Inc.
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The company said today (19 November) that adjusted net earnings rose 8.2% to C$72.3m (US$58.6m) for the three months to 27 September.
However, the rise in quarterly profit failed to stop annual earnings at Metro falling. Adjusted net earnings for the year fell 4.6% to C$281.3m due to lower profits in the first two quarters of Metro’s fiscal year.
Metro had suffered from fierce competition in Ontario in the early part of its fiscal year, as well as from “issues” with its information systems and Québec Food Services warehouse.
Metro cited strong competition in Ontario for as it posted a annual sales of C$10.73bn, up 0.8% on the year. Fourth-quarter sales rose 1.8% to C$2.48bn. Fourth-quarter same-store sales were up 1.5%.
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By GlobalDataPresident and CEO Eric La Flèche said Metro’s plans to invest in Ontario would help boost the business in the coming fiscal ear.
“Our teams’ efforts and the actions taken to overcome the problems encountered in the first half of 2008 paid off with the growth of our earnings in the last two quarters,” La Flèche said.
“I am confident that our capital investment program in Ontario and the strength of our Québec network will enable us to continue to grow in 2009.”
