2022 FIRST QUARTER HIGHLIGHTS
- Sales of
$4,316.6 million , up 0.9%, and up 7.1% vs 2020 - Food same-store sales down 1.4%, and up 8.5% vs 2020
- Pharmacy same-store sales up 7.7%, and up 9.1% vs 2020
- Net earnings of
$207 .7 million, up 8.6% and adjusted net earnings(1) of$214 .2 million, up 8.3%, and up 22.0% and 18.4% respectively vs 2020 - Fully diluted net earnings per share of
$0.85 , up 11.8%, and adjusted fully diluted net earnings per share(1) of$0.88 , up 11.4%, and up 26.9% and 23.9% respectively vs 2020 - Declared dividend of
$0 .275 per share, up 10.0%
12 weeks / Fiscal Year | ||||||
(Millions of dollars, except for net earnings per share) | 2022 | % | 2021 | % | Change (%) | |
Sales | 4,316.6 | 100.0 | 4,278.2 | 100.0 | 0.9 | |
Operating income before depreciation | 424.1 | 9.8 | 399.2 | 9.3 | 6.2 | |
and amortization | ||||||
Net earnings | 207.7 | 4.8 | 191.2 | 4.5 | 8.6 | |
Fully diluted net earnings per share | 0.85 | — | 0.76 | — | 11.8 | |
Adjusted net earnings(1) | 214.2 | 5.0 | 197.7 | 4.6 | 8.3 | |
Adjusted fully diluted net earnings per share(1) | 0.88 | — | 0.79 | — | 11.4 |
PRESIDENT'S MESSAGE
"We delivered strong results in our first quarter of 2022, driven by continued sales growth on top of record sales last year and good expense control. Our industry is facing higher than normal inflationary pressures and our teams are working hard to provide the best value possible to our customers. The rapid spread of the omicron variant since the end of the quarter has caused challenges in our operations and I want to thank all our front-line employees for their commitment in these trying times. Today we are unveiling our 2022-2026 Corporate Responsibility Plan which builds on the progress we achieved over the last decade and sets ambitious goals for the company in the context of global sustainable development", declared
OPERATING RESULTS
SALES
Sales in the first quarter of Fiscal 2022 remained strong, reaching
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
This earnings measurement excludes financial costs, taxes, depreciation and amortization.
Operating income before depreciation and amortization for the first quarter of Fiscal 2022 totalled
Gross margin on sales for the first quarter of Fiscal 2022 was 19.9%, versus 19.7% for the corresponding period of 2021.
Operating expenses as a percentage of sales for the first quarter of Fiscal 2022 were 10.1% versus 10.4% for the corresponding quarter of 2021 mainly due to the reduction in COVID-related costs.
DEPRECIATION AND AMORTIZATION AND NET FINANCIAL COSTS
Total depreciation and amortization expense for the first quarter of Fiscal 2022 was
Net financial costs for the first quarter of Fiscal 2022 were
INCOME TAXES
The income tax expense of
NET EARNINGS AND ADJUSTED NET EARNINGS(1)
Net earnings for the first quarter of Fiscal 2022 were
Net earnings adjustments(1)
12 weeks / Fiscal Year | ||||||||
2022 | 2021 | Change (%) | ||||||
(Millions of | Fully diluted | (Millions of | Fully diluted (Dollars) | Net earnings | Fully | |||
Net earnings | 207.7 | 0.85 | 191.2 | 0.76 | 8.6 | 11.8 | ||
Amortization of intangible assets acquired in | 6.5 | 6.5 | ||||||
connection with the | ||||||||
Adjusted net earnings(1) | 214.2 | 0.88 | 197.7 | 0.79 | 8.3 | 11.4 |
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 "predict", "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 2022 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. The arrival of a new competitor is an example of the risks described under the "Risk Management" section of the 2021 Annual Report which could have an impact on these statements. As with the preceding risks, the COVID-19 pandemic constitutes a risk that could have an impact on the business, operations, projects and performance of the Corporation as well as on the forward-looking statements contained in this document.
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-IFRS MEASUREMENTS
In addition to the International Financial Reporting Standards (IFRS) earnings measurements provided, we have included certain non-IFRS earnings 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.
ADJUSTED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION, ADJUSTED NET EARNINGS AND ADJUSTED FULLY DILUTED NET EARNINGS PER SHARE
Adjusted operating income before depreciation and amortization, adjusted net earnings and adjusted fully diluted net earnings per share are earnings measurements that exclude some items that must be recognized under IFRS. They are non-IFRS measurements. We believe that presenting earnings without these items, which are not necessarily reflective of the Corporation's performance, leaves readers of financial statements better informed as to the current period and corresponding prior year's period's operating earnings, thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and judge its future outlook. The exclusion of these items does not imply that they are non-recurring.
OUTLOOK(2)
Government measures to curb the impact of the pandemic were tightened at the start of the second quarter, similar to what transpired a year ago, and it remains difficult to predict how they will evolve and the impact they will have on our business. In the short term, food sales are expected to remain relatively stable as restaurant closures and work from home advisories persist. On the pharmacy side, we expect sales to increase versus the prior year with launch of COVID rapid test distribution in our network coupled with less restrictive government measures as 2021 was unfavourably impacted by a six-week ban on the sale of non-essential goods in
CONFERENCE CALL
Financial analysts and institutional investors are invited to participate in a conference call for the 2022 first quarter results at
Notice to readers: METRO INC. first quarter of 2022 interim condensed consolidated financial statements and management's discussion and analysis are available on the Internet at www.metro.ca - Corporate Site - Investor Relations - 2022 Quarterly Results - 2022 First Quarter Results.
(1) See table on "Net earnings adjustments" and section on "Non-IFRS Measurements" |
(2) See section on "Forward-looking Information" |
SOURCE
© Canada Newswire, source