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Summary
- Metro Inc reported its financial results for the third quarter of fiscal 2021 on Wednesday, August 11.
- MRU shares have returned nine per cent year-to-date (YTD).
- Its dividend is set to remain unchanged.
Metro Inc. (TSX:MRU) reported its financial results for the third quarter of fiscal 2021 on Wednesday, August 11.
In its wake, MRU stocks declined by about four per cent at market open, trading at C$ 61.84 per share at 9:40 AM EST.
The Canadian grocery retailer recorded a net income of C$ 252.4 million in Q3 FY21, which was down from C$ 263.5 million in the third quarter of 2020. Its sales, meanwhile, were down from C$ 5.84 billion in Q3 FY20 to C$ 5.72 billion in Q3 FY21.
Metro's diluted earnings per share stood at C$ 1.03 for the 16 weeks ending July 3, 2021, noting a decline from C$1.04 per diluted EPS in the same quarter of the previous year.
In comparison to Q3 FY20, Metro's food same-store sales were down by 3.6 per cent year-over-year (YoY) in the latest quarter, while its pharmacy same-store sales were up by 7.6 per cent YoY.
In addition, its COVID-19 related expenses for Q3 FY21 were down to C$ 38 million, as compared to C$ 107 million in Q3 FY20.
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Metro (TSX:MRU) stock performance
As compared to its 52-week high of C$ 66.25 per share (November 9, 2020), MRU stock’s last closing price was down three per cent at C$ 64.29 on August 10.
Metro shares have returned nine per cent year-to-date (YTD). In the last three months, the script noted a growth of eight per cent.
Bottomline
Despite reduced earnings, the grocery and pharmacy retailer's Board of Directors has decided to keep its dividend unchanged from the previous quarter. Metro Inc will continue to distribute a quarterly dividend of C$ 0.25 per unit to its shareholders.
In the third quarter of fiscal 2021, Metro’s operating activities generated cash inflows of C$ 517.7 million, which was higher than that of C$ 513.4 million in Q3 2020. Metro’s cash and cash equivalents amounted to C$ 411 million in the latest quarter.
Since the economy is expected to recover amid increased vaccinations and removal of public health restrictions, grocery stores could witness an increased footfall going forward.
