Metro's profits are way up as shoppers grapple with bonkers grocery price inflation
Metro has just released its financial report for the past quarter, reporting a substantial jump in profits from this time last year as Canadians struggle to afford ever more exorbitantly priced groceries.
Similar to the hundreds of millions in earnings that Loblaws posted in the last three months, Metro raked in an enraging $346.7 million during fiscal Q3 2023 as a result of a staggering $6.43 billion in sales.
These figures mark a jump of 26.1% from the profits recorded in the third quarter of 2022, though sales were only up 9.6% compared to the same period.
Unfettered capitalism is the new democracy.
— 🌻Looks Like (@DomaLady) July 28, 2023
This can be attributed largely to the fact that price hikes for food in Canada continue to trend higher than the overall inflation rate, with consumers now paying 9.1% more for groceries than they did last year, compared to 2.8% more for goods overall.
In the wake of these new numbers and amid accusations of price gouging by all of the narrow sector‘s few big players, Metro’s president and CEO asserts that “with persistent food inflation, our teams did an excellent job to offer good value to our customers,” noting increased patronage of its discount arm Food Basics in particular.
That’s 50% more than Q1 and Q2 earnings (225M, 229M).
I wonder what’s changed?🤔Did they benefit from customers boycotting Loblaws or is it just our population growth?
— Ash Dash (@AshDom12) August 9, 2023
The exec also said in the company’s press release on Wednesday that the brand is “clearly disappointed” with the current labour dispute that has led to the temporary closure of dozens of stores in the GTA as employees demand higher wages, more hours, and better job stability.
“We look forward to a resolution and the reopening of our stores as soon as possible while ensuring the long-term competitiveness of our company,” he wrote.