Metro Inc.

net earnings dropped 12.8 per cent

in the first quarter

of 2026 amid a “challenging operating environment.”

The company

reported its financial results

for the quarter ended Dec. 20, recording net earnings of $226.3 million, down from $259.5 million the prior year. This comes out to fully diluted net earnings per share of $1.05, down 9.5 per cent compared with $1.16 in 2025.

Sales were $5.3 billion

, up 3.3 per cent from the previous year. The company said it was negatively impacted by the transfer of one significant pre-Christmas shopping day to the second quarter and by the temporary shutdown of its

frozen food distribution centre

in Toronto.

“We delivered sales and earnings per share growth in a challenging operating environment, marked by the temporary closure of our freezer in Toronto and persistent food inflation,” Metro chief executive Eric La Flèche said in a press release.

On an adjusted basis, net earnings for the quarter were $248.7 million, up 1.3 per cent. Adjusted fully diluted net earnings per share were $1.16, up 5.5 per cent.

Food same-store sales

were up 1.6 per cent in the quarter, while online food sales grew 25.8 per cent. Pharmacy same-store sales were up 3.9 per cent, with a 5.1 per cent increase in prescription drugs and a 1.3 per cent increase in front-store sales, primarily driven by health and beauty and partially offset by a delayed cough and cold season.

The company says it will pay a quarterly dividend of 40.75 cents per share, up from 37 cents per share.

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• Email: dpaglinawan@postmedia.com