Metro Inc.

good morning ladies and gentlemen and welcome to the Metro Inc 2024 fourth quarter results conference call at this time all lines are in the listen-only mode following the presentation we will conduct a question-and-answer session and if at any time during this call you require immediate assistance please press star 0 for the operator also note that this call is being recorded on November 20th 2024 I would now like to turn the conference over to Sharon Kadosh Director, Investor Relations and Treasury. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Our comments will focus on the financial results of our fourth quarter, which ended on September 28th. With me today is Mr. Eric Lafleche, President and CEO, François Thibault, Executive VP and CFO, Marc Giroux, Executive VP and COO, and Jean-Michel Couture, President of the Pharmacy Division. During the call, we will present our fourth quarter results and comment on its highlights. We will then be happy to take your questions. Before we begin, I would like to remind you that we will use in today's discussion different statements that could be construed as forward-looking information. In general, any statement which does not constitute a historical fact may be deemed a forward-looking statement. Words or expressions such as expect, intend are confident that, will and other similar words or expressions are generally indicative of forward-looking statements. The forward-looking statements are based upon certain assumptions regarding the Canadian food and pharmaceutical industries, the general economy, our annual budget, and our 2024-2025 action plan. These forward-looking statements do not provide any guarantees as to the future performance of the company and are subject to potential risks known and unknown as well as uncertainties that could cause the outcome to differ materially. Risk factors that could cause actual results or events to differ materially from our expectations as expressed in or implied by our forward-looking statements are described under the risk management section in our 2023 annual report. We believe these forward-looking statements to be reasonable and pertinent at this time and represent our expectations. The company does not intend to update any forward-looking statement except as required by applicable law. I will now turn the call over to Francois.

Thank you, Chalon, and good morning, everyone. Before I vote through our results, I just want to remind everyone that 2023 was a 53-week year versus 52 weeks this year. Additionally, in Q4 last year, we had a five-week strike at 27 Metro stores located in the Greater Toronto Area. Also starting this quarter, we are segregating our total sales between food and pharmacy, and you'll find a breakdown in Note 3 of our interim report. Turning to our quarter, total sales reached $4.94 billion, a decrease of 2.6% versus the same period last year. On a comparable 12-week basis, sales were up 5.7% in Q4, driven by higher sales in the retail network this year and the negative impact of the labor conflict last year. Same-store sales were up 2.2% in food and up 5.7% in pharmacy. Our gross margins stood at 19.7% of sales versus 19.5% in the same quarter last year. Operating expenses as a percentage of sales came in at 10.4% versus 10.7% last year, and if we exclude the impact of the strike in the fourth quarter of 2023, our operating expenses as a percentage of sales are the same in both years. EBITDA for the quarter totaled $459.6 million, representing 9.3% of sales versus 8.8% last year, and was up 2.6% year-over-year. Total depreciation and amortization expense for the quarter was $135.8 million, up $10.8 million, and that 8.6% increase is mainly due to the commissioning of our new automated Table 1 DC and the final phase of our fresh DC in Toronto. Net financial costs for the third quarter were $32.6 million compared to $30.1 last year, and the increase is due to a higher level of debt and interest rates, as well as lower capitalized interest related to our distribution center automation projects. The effective tax rate for the fourth quarter of fiscal 24 was 24.5% compared to an effective tax rate of 24.1% for the same quarter last year. Adjusted net earnings were $226.5 million compared to $228.8 million last year, a 1% decrease, and adjusted net earnings per share amounted to $102 versus $0.99 last year. That's up 3% year over year. Recall that in our fourth quarter last year, the strike had an unfavorable impact of approximately $27 million after tax, or $0.12 per share, and the additional week had a favorable impact of $27 million after tax, or $0.12 per share. On the food retail side, in fiscal 24, we opened nine new stores, including three conversions to Super C. We carried out major expansions and renovations at 11 stores and relocated another two for a net increase of 318,000 square feet, or 1.5% of our food retail network. Turning to in-store technology, we ended the fiscal year with 529 stores equipped with self-checkout technology and 397 stores equipped with electronic shelf tags. Under our normal course issue bid program, we repurchased 7 million shares for a total consideration of 510 million, representing an average share price of $72.90. Yesterday, the board directors authorized the renewal of our share repurchase program, which will enable us to repurchase in the normal course of business between November 27, 2024 and November 26, 2025, up to 10 million of our common shares, so an increase of 3 million shares. In closing, Our fiscal 24 results have landed well within the guidance provided last year, and we expect to gradually resume our profit growth in fiscal 25, and we maintain our publicly disclosed annual growth targets, that is to grow sales by 2% to 4%, operating income by 4% to 6%, and adjusted earnings per share by 8% to 10% over the medium and long term. That's it for me. I'll turn it over to Eric.