Yahoo Finance Allegations of anti-competitive practices in grocery sector 'just not true,' Metro CEO says
The chief executive of Metro Inc. fired back Tuesday against suggestions that the grocery industry engages in anti-competitive practices, a day after the federal industry minister wrote the Competition Bureau to discuss a new study on the sector.
“We have done nothing wrong,” Metro CEO Eric La Flèche told media on Tuesday following the company’s annual general meeting. “This overtone that there were anti-competitive practices … is just not true.”
La Flèche said Jan. 30 that the Quebec grocer collaborated fully and transparently with the Competition Bureau’s study last year on Canada’s retail grocery market, which was published in June and found that co-operation varied among the grocers and was not fulsome.
Federal industry minister François-Philippe Champagne on Tuesday reiterated his plans to encourage international grocers to open up shop in Canada in an effort to enhance competition in the sector.
Champagne met with Canadian grocers in the fall about food inflation and demanded they create plans to stabilize grocery prices or face consequences including potential tax measures.
The minister sent a letter to the commissioner of the Competition Bureau on Monday asking to discuss a follow-up study on the grocery sector now that the bureau has new powers to subpoena companies for information.
Prior to the shareholders meeting, Metro announced it has boosted its quarterly dividend by 10.7 per cent as it reported an increase in sales for the first quarter of fiscal 2024.
For the three-month period ended Dec. 23, the grocer reported $4.97 billion in sales — a 6.5 per cent increase from the prior year.
“Our discount food stores continue to grow their sales at a faster pace, private label penetration reached new heights and our MOI loyalty program now has 2.5 million members, double the size of Metro&Moi,” La Flèche said in a press release.
The company’s net earnings were little changed at $228.5 million in the first quarter, down 1.1 per cent from 2023. Adjusted net earnings were $235 million, down 1.1 per cent.
Diluted net earnings were up 2.1 per cent to $0.99 per share, while adjusted fully diluted net earnings were $1.02 per share, up two per cent.
The company declared a quarterly dividend of $0.3350 per share, an increase of 10.7 per cent from last year’s quarterly dividend.
For fiscal 2023, the grocer passed the $20-billion mark in annual sales and reached $1.5-billion in net profits for the first time in its history.
With files from Canadian Press
• Email: dpaglinawan@postmedia.com
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