Topic: How To Invest

The Successful Investor Hotline – Friday, April 22, 2022

Article Excerpt

METRO INC., $69.82, Toronto symbol MRU, remains a buy. The company operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick. To offset rising costs for labour and the impact of COVID-19 on its supply chains, Metro continues to raise its selling prices. In the company’s fiscal 2022 second quarter, ended March 12, 2022, its overall sales rose 1.9%, to $4.27 billion from $4.19 billion a year earlier. That topped the $4.26 billion consensus forecast. Food same-store sales improved 0.8%, while online food sales gained 6.0% over the previous year. The company’s drug stores are also benefiting from strong demand for COVID-19 products, mainly rapid testing kits, and higher sales of cough and cold remedies. Same-store sales at its drug stores improved 9.4%, reflecting a 7.7% increase in prescription drug sales and a 13.3% jump in sales of other products. Earnings before one-time items rose 5.1%, to $204.7 million from $194.7 million a year earlier. Due to the fewer shares outstanding, earnings…