2023 FOURTH QUARTER HIGHLIGHTS
- 13-week quarter versus 12 weeks in 2022
- Sales of
$5,071.7 million , up$14 .4% - Food same-store sales(1) up 6.8%
- Pharmacy same-store sales(1) up 5.5%
- Net earnings of
$222.2 million , up 31.7%, and adjusted net earnings(1) of$228.8 million , up 4.3% - Fully diluted net earnings per share of
$0.96 , up 37.1%, and adjusted fully diluted net earnings per share(1) of$0.99 , up 7.6% - Negative impact of about
$0.12 per share due to a labour conflict at 27 Metro stores in theGreater Toronto Area
2023 FISCAL HIGHLIGHTS
- 53-week fiscal year versus 52 weeks in 2022
- Sales of
$20,724.6 million , up 9.7% - Net earnings of
$1,018.8 million , up 19.9%, and adjusted net earnings(1) of$1,006.6 million , up 9.2% - Fully diluted net earnings per share of
$4.35 , up 23.9%, and adjusted fully diluted net earnings per share(1) of$4.30 , up 12.6%
Fiscal years | ||||||
2023 | % | 2022 | % | Change (%) | ||
(Millions of dollars, except for net earnings per share) | (13 weeks) | (12 weeks) | ||||
Sales | 5,071.7 | 100.0 | 4,432.6 | 100.0 | 14.4 | |
Operating income before depreciation and amortization and impairments of assets, net of reversals | 448.0 | 8.8 | 441.4 | 10.0 | 1.5 | |
Net earnings | 222.2 | 4.4 | 168.7 | 3.8 | 31.7 | |
Fully diluted net earnings per share | 0.96 | — | 0.70 | — | 37.1 | |
Adjusted net earnings(1) | 228.8 | 4.5 | 219.4 | 4.9 | 4.3 | |
Adjusted fully diluted net earnings per share(1) | 0.99 | — | 0.92 | — | 7.6 |
Fiscal years | ||||||
2023 | % | 2022 | % | Change (%) | ||
(Millions of dollars, except for net earnings per share) | (53 weeks) | (52 weeks) | ||||
Sales | 20,724.6 | 100.0 | 18,888.9 | 100.0 | 9.7 | |
Operating income before depreciation and amortization and impairments of assets, net of reversals | 1,969.6 | 9.5 | 1,844.6 | 9.8 | 6.8 | |
Net earnings | 1,018.8 | 4.9 | 849.5 | 4.5 | 19.9 | |
Fully diluted net earnings per share | 4.35 | — | 3.51 | — | 23.9 | |
Adjusted net earnings(1) | 1,006.6 | 4.9 | 922.1 | 4.9 | 9.2 | |
Adjusted fully diluted net earnings per share(1) | 4.30 | — | 3.82 | — | 12.6 |
PRESIDENT'S MESSAGE
"We are pleased with our fourth quarter results which were achieved in a challenging operating environment that included a 5-week strike at 27 Metro stores in
OPERATING RESULTS
SALES
Sales in the fourth quarter of Fiscal 2023 remained strong, reaching
Sales for Fiscal 2023 totalled
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND IMPAIRMENTS OF ASSETS, NET OF REVERSALS
This earnings measurement excludes financial costs, taxes, depreciation and amortization and impairments of assets, net of reversals.
Operating income before depreciation and amortization and impairments of assets, net of reversals for the fourth quarter of Fiscal 2023 totalled
Gross profit for the fourth quarter of 2023 was unfavorably impacted by
Operating expenses as a percentage of sales for the fourth quarter and Fiscal 2023 were 10.7% and 10.2% versus 10.7% and 10.4% in the corresponding periods of 2022. The net impact of a labour conflict at 27 Metro stores in the
DEPRECIATION AND AMORTIZATION
Total depreciation and amortization expense for the fourth quarter and Fiscal 2023 was
IMPAIRMENTS OF ASSETS, NET OF REVERSALS
There were no impairments of assets, net of reversals in Fiscal 2023. During the fourth quarter of Fiscal 2022, the Corporation recorded
NET FINANCIAL COSTS
Net financial costs for the fourth quarter of Fiscal 2023 were
INCOME TAXES
The income tax expense of
NET EARNINGS AND ADJUSTED NET EARNINGS(1)
Net earnings for the fourth quarter of Fiscal 2023 were
Net earnings for Fiscal 2023 were
Net earnings and fully diluted net earnings per share (EPS) adjustments(1)
2023 | 2022 | Change (%) | ||||||
(13 weeks) | (12 weeks) | |||||||
Net earnings | Fully diluted | Net earnings | Fully diluted | Net earnings | Fully | |||
Per financial statements | 222.2 | 0.96 | 168.7 | 0.70 | 31.7 | 37.1 | ||
Loss on impairment of a loyalty program, net | — | 44.1 | ||||||
Amortization of intangible assets acquired in | 6.6 | 6.6 | ||||||
Adjusted measures(1) | 228.8 | 0.99 | 219.4 | 0.92 | 4.3 | 7.6 |
2023 | 2022 | Change (%) | ||||||
(53 weeks) | (52 weeks) | |||||||
Net earnings | Fully diluted | Net earnings | Fully diluted | Net earnings | Fully | |||
Per financial statements | 1,018.8 | 4.35 | 849.5 | 3.51 | 19.9 | 23.9 | ||
Loss on impairment of a loyalty program, net | — | 44.1 | ||||||
Amortization of intangible assets acquired in | 28.5 | 28.5 | ||||||
Favorable tax adjustment in respect of prior | (40.7) | — | ||||||
Adjusted measures(1) | 1,006.6 | 4.30 | 922.1 | 3.82 | 9.2 | 12.6 |
NORMAL COURSE ISSUER BID PROGRAM
Under the current normal course issuer bid program, the Corporation may repurchase up to 7,000,000 of its Common
Shares between
DIVIDENDS
On
FORWARD-LOOKING INFORMATION
We have used, throughout this report, different statements that could, within the context of regulations issued by the Canadian Securities Administrators, be construed as being forward-looking information. In general, any statement contained herein that does not constitute a historical fact may be deemed a forward-looking statement. Expressions such as "intend", "expect" and other similar expressions are generally indicative of forward-looking statements. The forward-looking statements contained herein are based upon certain assumptions regarding the Canadian food and pharmaceutical industries, the general economy, our annual budget, as well as our 2024 action plan.
These forward-looking statements do not provide any guarantees as to the future performance of the Corporation and are subject to potential risks, known and unknown, as well as uncertainties that could cause the outcome to differ significantly. Risk factors that could cause actual results or events to differ materially from our expectations as expressed in, or implied by, our forward-looking statements are described and discussed under the "Risk Management" section in our Annual Report 2022.
We believe these statements to be reasonable and pertinent as at the date of publication of this report and represent our expectations. The Corporation does not intend to update any forward-looking statement contained herein, except as required by applicable law.
NON-GAAP AND OTHER FINANCIAL MEASUREMENTS
In addition to the International Financial Reporting Standards (IFRS) measurements provided, we have included certain non-GAAP and other financial measurements. These measurements are presented for information purposes only. They do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measurements presented by other public companies.
National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure sets out specific disclosure requirements for non-GAAP financial measures, non-GAAP ratios, and other financial measures, which are capital management measures, supplementary financial measures, and total of segments measures, as defined in the Instrument (together the "specified financial measures").
The specified financial measures we disclose in our documents made available to the public are presented by measurement categories below.
NON-GAAP FINANCIAL MEASURES
Adjusted net earnings is a non-GAAP financial measurement that with respect to its composition is adjusted to exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in our consolidated financial statements.
For measurements depicting financial performance, we believe that presenting earnings adjusted for these items, which are not necessarily reflective of the Corporation's performance, leaves readers of financial statements better informed thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring.
NON-GAAP RATIOS
Adjusted fully diluted net earnings per share is a non-GAAP ratio by where a non-GAAP financial measure is used as one or more of its components.
We believe that presenting this ratio, in which a non-GAAP financial measurement is used as one or more of its components, leaves readers of financial statements better informed as to the current period and corresponding prior year's period's performance, thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring.
SUPPLEMENTARY FINANCIAL MEASURES
The supplementary financial measures listed below are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Corporation.
Food same-store sales and pharmacy same-store sales (including total, front-store and prescription drugs) are defined as comparable retail sales of stores with more than 52 consecutive weeks of operations, including relocated, expanded and renovated locations.
Online food sales are the sum of sales made from all our online channels.
Gross margin ratio is calculated by dividing gross profit by sales.
OUTLOOK(2)
As we begin our new fiscal year, we are ramping up our new state-of-the-art, automated distribution center north of
CONFERENCE CALL
Financial analysts and institutional investors are invited to participate in a conference call for the 2023 fourth quarter results at
Notice to readers: METRO INC. fourth quarter of 2023 interim condensed consolidated financial statements and management's discussion and analysis are available on the Internet at www.corpo.metro.ca - Corporate Site - Investors - 2023 Quarterly Results - 2023 Fourth Quarter Results.
(1) | See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements" |
(2) | See section on "Forward-looking Information" |
SOURCE
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