Canadian retailer Metro Inc has today (9 August) posted a rise in third-quarter net profits on the back of increased sales.
Net earnings for the quarter ending 30 June increased 13.6% to C$144.4m (US$225.6m). EBITDA climbed 10.3% to C$272.2m. Sales edged up 3.8% to C$3.7bn, while same store sales edged up 1%.
The company said it experienced "modest inflation" during the quarter, which was lower than the two previous quarters.
Gross margins for the third-quarter were 18.3%, up from 18.2% in the same period last year. Metro's merchandising strategies and the Adonis stores contributed to the increase, the company said.
Metro president and CEO Eric La Flèche said: "We are very pleased with our strong third quarter results, which reflect our efficient merchandising programmes, excellent cost control and strong execution by the Metro team. Despite increasing competition, we are confident that we can continue on our growth path."
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METRO reports 2012 third quarter adjusted fully diluted net earnings per share(1) growth of 18.7%
MONTREAL, Aug. 9, 2012 /CNW Telbec/ - METRO INC. (TSX: MRU) announced its results today for the third quarter ended June 30, 2012.
HIGHLIGHTS
Adjusted net earnings(1) of $147.4 million, up 16.0% Adjusted fully diluted net earnings per share(1) of $1.46, up 18.7% Sales of $3,703.5 million, up 3.8% Same store sales up 1.0% Declared dividend of $0.215 per share, up 11.7%
16 weeks / Fiscal Year (Millions of dollars,
except for net earnings per share/EPS) 2012 % 2011 % Change (%) Sales 3,703.5 100.0 3,566.9 100.0 3.8 EBITDA(1) 272.2 7.3 246.7 6.9 10.3 Adjusted net earnings(1) 147.4 4.0 127.1 3.6 16.0 Adjusted fully diluted EPS(1) 1.46 - 1.23 - 18.7 40 weeks / Fiscal Year (Millions of dollars,
except for net earnings per share/EPS) 2012 % 2011 % Change (%) Sales 9,067.1 100.0 8,746.9 100.0 3.7 EBITDA(1) 648.0 7.1 599.5 6.9 8.1 Adjusted net earnings(1) 347.2 3.8 308.3 3.5 12.6 Adjusted fully diluted EPS(1) 3.41 - 2.96 - 15.2
PRESIDENT'S MESSAGE
"We are very pleased with our strong third quarter results, which reflect our efficient merchandising programs, excellent cost control and strong execution by the Metro team. Despite increasing competition, we are confident that we can continue(2) on our growth path", stated Sales in the third quarter and first 40 weeks of 2012 reached $3,703.5 million and $9,067.1 million, up 3.8% and 3.7% respectively compared to sales of $3,566.9 million and $8,746.9 million for the corresponding periods last year. Adonis stores and distributor Phoenicia's third quarter and 40-week sales contributed $81.3 million and $173.3 million respectively to the Corporation's sales. Same store sales were up 1.0% for the third quarter of 2012 compared to the corresponding period in 2011. We experienced very modest inflation in the third quarter, which was lower than in the first two previous quarters.
EBITDA(1) for the third quarter of 2012 was $272.2 million, up 10.3% from $246.7 million for the same quarter last year. Third-quarter EBITDA(1) represented 7.3% of sales versus 6.9% last year.
EBITDA(1) for the first 40 weeks of 2012 was $648.0 million or 7.1% of sales compared to $599.5 million or 6.9% of sales for the same period last year.
Gross margins for the third-quarter and the first 40 weeks of 2012 were 18.3% and 18.4% respectively, up from 18.2% for each of the corresponding periods of 2011. Our merchandising strategies and the Adonis stores contributed to this increase.
Our share of earnings in Alimentation Couche-Tard for the third quarter and the first 40 weeks of 2012 were $13.6 million and $35.5 million respectively, compared to $6.9 million and $27.1 million for the corresponding periods of fiscal 2011. In its last interim report, Couche-Tard stated that non-recurring items are included in the quarter, and excluding these items, Couche-Tard's adjusted net earnings(1) were lower by US$15.4 million. Excluding our share of earnings from our investment in Alimentation Couche-Tard, EBITDA(1) for the third quarter of 2012 was $258.6 million or 7.0% of sales versus $239.8 million or 6.7% of sales for the third quarter of 2011, an increase of 7.8%. For the 40-week period of 2012, EBITDA (1) was $612.5 million or 6.8% of sales versus $572.4 million or 6.5% of sales for the corresponding period of 2011, an increase of 7.0%.
Net earnings for the third quarter of 2012 were $144.4 million, an increase of 13.6% over net earnings of $127.1 million for the same quarter of 2011. Fully diluted net earnings per share rose 16.3% to $1.43 from $1.23 last year. Excluding the non-recurring tax expense of $3.0 million, our adjusted net earnings(1) were $147.4 million and our adjusted fully diluted net earnings per share(1) were $1.46, a 16.0% and 18.7% increase respectively.
Net earnings for the first 40 weeks of 2012 reached $344.2 million, up 11.6% from $308.3 million last year. Fully diluted net earnings per share were $3.38 compared to $2.96 last year, an increase of 14.2%. Excluding the non-recurring tax expense of $3.0 million, our adjusted net earnings(1) were $347.2 million and our adjusted fully diluted net earnings per share (1) were $3.41, a 12.6% and 15.2% increase respectively.
The Company intends to renew its normal course issuer bid program as an additional option for using excess funds. Thus, we could be able to decide, in the shareholders' best interest, to reimburse debt or to repurchase Company shares. The Common Shares so repurchased would be cancelled. Under the existing normal course issuer bid program, the Company repurchased, during the period from September 8, 2011 to July 27, 2012, 4,239,800 Common Shares at an average price of $50.99 per share for a total of $216.2 million.
On August 8, 2012, the Corporation's Board of Directors declared a quarterly dividend of $0.215 per Common Share payable September 13, 2012, an increase of 11.7% over the dividend declared for the same quarter last year. On an annualized basis, this dividend represents approximately 21% of 2011 net earnings.
Original source: Metro Inc
