Higher food prices have led Canadian grocery chain Metro (MRU) to report that its net income, or profit, for this year’s second quarter rose 26% from a year earlier to $346.7 million.
That compares to a profit of $275 million in the year earlier quarter. Metro said its latest profits also got a boost from higher same-store sales and a favourable tax ruling.
The increased profits come as Canadian consumers struggle with food inflation and as Metro endures a strike by its employees in Toronto who are demanding that the company share more of its gains with workers.
Montreal-based Metro said the rise in profits are due in part to a tax benefit after the Canada Revenue Agency granted capital losses to the company that had previously been disallowed.
Still, Metro’s net income for what was the company’s fiscal third quarter rose 11% year-over-year.
The company is currently dealing with a strike by 3,700 workers at 27 locations across Toronto as they push for higher pay and other improvements.
Unifor, the union representing the striking workers, said in a statement that Metro’s profits show the company has “no excuses” not to meet its demands.
Sales during Metro’s fiscal Q3 increased 10% to $6.43 billion from $5.87 billion a year earlier, boosted by same-store sales growth of 9%.
The company's gross margin on food was down slightly from last year as it absorbed more food inflation costs and customers shift to lower priced discount brands.
Metro’s stock has risen 3% over the last 12 months to trade at $70.56 per share.
