Metro Posts Higher Than Expected Quarterly Profit
Canadian grocery retailer Metro has posted higher-than-expected profits for its latest quarterly report, according to Reuters.
Although Metro is facing some serious competition on its home turf of Canada from US retailers like Wal-Mart and Target, a recent reorganization of its Ontario operations has reportedly boosted sales and as a result the company has raised its dividend from 25 to 30 Canadian cents per share.
"Our merchandising strategies and investments, as well as our reorganization of our Ontario store network enabled us to increase sales in a market that remains intensely competitive," Metro said in a statement.
In the most recent quarter, Metro's sales were up 1.7% to C$2.55 billion, whereas analysts were only expecting C$2.52 billion. Same-store sales also rose by 1%.
As AndNowUKnow previously reported, Metro reorganized its Ontario operations last quarter. This has resulted in a more efficient business. The company's recent increase in profits were undoubtedly in part the result of that $40 million plan.
Click Here to View Our Previous Article on Metro's Ontario Reorganization Plans
The company successfully reorganized its store network, including the conversion of certain Metro stores into Food Basics discount banner stores, the buyout of some collective agreement provisions, the offer of early exit to some employees, and the closure of some stores.
So far, after news of the earnings report, Metro (MRU)'s share price remains relatively unchanged.
Stay tuned to AndNowUKnow for more financial news from the retail sector as it becomes available.
Metro
