Canadian grocer Metro (MRU) is warning that food inflation is likely to continue in coming months.
One of Canada's largest grocers says its prices are likely to remain elevated as it faces ongoing price increases from food suppliers.
Metro CEO Eric La Flèche made the comments during an earnings call with analysts, suggesting that food inflation could persist as higher costs work through the Canadian supply chain.
Metro reported that its fiscal fourth-quarter profit fell compared with a year ago as it took a $60-million charge related to its decision to withdraw its Jean Coutu drugstore chain from the Air Miles loyalty reward program.
The grocery and drugstore retailer said it earned $168.7 million or $0.70 per share for the quarter ended September 24. That compared with a profit of $194 million or $0.79 a share a year earlier.
Revenue in the quarter totalled $4.43 billion, up from $4.09 billion a year earlier. Food same-store sales rose 8% while pharmacy same-store sales rose 7.4%.
Metro’s stock is up 11% this year and trading at $74.22 per share.
