One of Canada's biggest grocers says it's continuing to receive many requests from food suppliers for price increases next year.
Metro Inc. president and CEO Eric La Flèche said Wednesday the retailer expects food inflation to moderate in the new year as prices are compared against the high inflation of 2022.
But the outlook remains uncertain as the grocer continues to field cost increase notices from suppliers for February, he said.
His comments during a call with analysts suggest food inflation could persist for several more months as higher costs continue to work through the supply chain.
Statistics Canada said Wednesday that the price of food purchased from stores increased 11 per cent in October, the eleventh consecutive month grocery bills increased at a faster rate year over year than the overall consumer price index.
La Flèche's comments come as Metro reported its fourth-quarter profit fell compared with a year ago as it took a $60-million charge related to the company's decision to have its Jean Coutu drugstore chain withdraw from the Air Miles loyalty program next year.
The grocery and drugstore retailer said it earned $168.7 million or 70 cents per diluted share for the quarter ended Sept. 24 compared with a profit of $194.0 million or 79 cents per diluted share a year ago.
Sales totalled $4.43 billion, up from $4.09 billion in the same quarter last year.
Food same-store sales gained 8.0 per cent, while pharmacy same-store sales rose 7.4 per cent.
On an adjusted basis, Metro says it earned 92 cents per diluted share in its latest quarter, up from an adjusted profit of 81 cents per share a year ago.
Analysts on average had expected a profit of 90 cents per share and $4.29 billion in sales, according to estimates compiled by financial markets data firm Refinitiv.
Advertisement