By Robb M. Stewart

Metro's food and pharmaceutical sales rose in latest quarter, but the Canadian grocer's earnings were dented troubles at a frozen-food distribution center.

Metro's fourth-quarter income slipped to 217 million Canadian dollars ($155.1 million), or C$1 a share, from C$219.9 million, or C$0.98, a year earlier.

The company absorbed a C$22.5 million after-tax hit during the period after a refrigeration problem at a distribution center in Toronto meant the frozen-food operation was halted in mid-September.

Adjusted to exclude one-time items, per-share earnings were up 11% on last year at C$1.13. Analysts polled by FactSet had penciled in adjusted earnings of C$1.09 for the three months ended Sept. 27.

Sales for the fiscal quarter were up 3.4% to C$5.11 billion, in line with analysts' mean estimate. The increase was driven by higher sales in Metro's discount and pharmacy retail networks.

Comparable same-store food sales were up 1.6% on a year ago, and Metro's pharmacy segment saw sales increase 4.8% on the same basis with growth in prescription drugs and over-the-counter products, cosmetics and health and beauty items.

The company, whose banners include Metro, Food Basics and Adonis, said its frozen distribution center in Toronto resumed operations last week and are expected to be essentially back to normal by the end of December. It booked a C$24.5 million expense for the write-down to realizable value of inventories during the 12-week period and fiscal year related to frozen products that were unsalvageable following the mechanical failure.

Rival George Weston this week reported earnings were boosted by increased traffic and bigger basket sizes in its food stores in the latest quarter. The parent of the Loblaw grocery chain's food-retail sales rose 4.8% on a year earlier, and were up 2% on a same-store basis increased 2%.

Empire, the owner of rival grocery banners in Canada including Sobeys and Farm Boy, also notched higher earnings and revenue in the latest quarter on the back of growth in food sales.

Metro, which is focused largely on the provinces of Ontario and Quebec, opened four new food stores and converted two others during the quarter.

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

(END) Dow Jones Newswires

November 19, 2025 07:27 ET (12:27 GMT)

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