By Robb M. Stewart

Canadian grocery retailer Metro logged a jump in earnings for the latest quarter thanks to a lift in both food and pharmacy sales.

Metro's second-quarter income earnings rose to 220 million Canadian dollars ($157.6 million), or C$0.99 a share, from C$187.1 million, or C$0.83, a year earlier.

On an adjusted basis, adjusted per-share earnings increased to C$1.02 in the three months to March 15, in line with the consensus forecast of analysts polled by FactSet.

Sales for the fiscal quarter were up 5.5% to C$4.91 billion, beating the C$4.86 billion expected by analysts.

Comparable same-store food sales were 5.3% ahead of a year earlier, or up 3.9% adjusting for a shift in timing that meant two key pre-Christmas shopping days fell in the second quarter this year. Metro's pharmacy segment saw sales climb 7% on a same-store basis, with a 7.8% rise in prescription drugs.

The result comes even as retailers in Canada operate against the backdrop of heightened consumer worries about the fallout of the Trump administration's import tariffs and the president's repeated mention of annexing Canada to become the 51st state.

Metro said the recently introduced tariffs and counter-tariffs imposed by Canada haven't had a material effect on its business, though the situation remains volatile. The company said it faces an uncertain economic environment, and that it is difficult to predict how this will impact its operations and customers.

"We are actively promoting and highlighting Canadian products in our stores and online, as well as sourcing products from our international supplier base to respond to the needs of our customers," said President and Chief Executive Eric La Fleche, adding sustained investments in Metro's retail networks and supply chain were expected to continue to fuel growth.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 16, 2025 07:35 ET (11:35 GMT)

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