On Wednesday Metro Inc. announced its results for the third quarter of fiscal 2018 ended July 7, 2018.
The Jean Coutu drug store chain acquisition was completed on May 11. Consequently, the results of the Jean Coutu Group were consolidated with the Corporation's results for slightly more than 8 weeks.
Sales in the third quarter of 2018 reached $4,636.4 million, up 13.8 per cent compared to $4,073.2 million in the third quarter of 2017. Excluding $467.0 million in sales for the third quarter of 2018 resulting from Jean Coutu Group, sales would have been up 2.4 per cent. In the third quarter, food same-store sales were up 2.0 per cent (down 0.2 per cent in the same quarter last year) and Metro’s food basket experienced inflation of approximately 0.5 per cent. Pharmacy same-store sales were up 1.8 per cent, 0.4 per cent for prescription drugs (2.4 per cent for number of prescriptions) and 3.8 per cent for front store sales.
Sales in the first 40 weeks of fiscal 2018 totalled $10,647.2 million versus $9,946.9 million for the corresponding period of fiscal 2017, an increase of 7.0 per cent. Excluding $467.0 million in sales from the first 40 weeks of fiscal 2018 resulting from Jean Coutu Group, sales would have been up 2.3 per cent.
"We are satisfied with our third-quarter results, as we achieved strong same-store sales growth despite intense competition, low food inflation and increased pressure on operating expenses,” said president and CEO Eric La Flèche. “The Jean Coutu Group acquisition represents a new growth opportunity for the Corporation, and we are confident of achieving the expected synergies of $75 million within three years.”