Metro Inc. said this week it would complete an acquisition it began in 2011.
Metro, which is Canada’s third largest grocer, had previously obtained a 55% interest in Marché Adonis, an ethnically oriented food retailer, and its distributor, Phoenicia Products.
While reviewing second quarter earnings this week, President and CEO Eric R. La Flèche said the remaining holdings of Adonis and Phoenicia would be purchased by Metro “shortly after this fiscal year.”
The company will continue to be run independently and report to Metro.
In 2011, when the Adonis brand was first brought into the fold, La Flèche expressed optimism that Metro could expand this brand from its existing four stores. Over the past six years, seven locations have been added and there are already plans for a 12th store on deck. Adonis’ minority owners funded that expansion effort by the same 45%/55% split, La Flèche said.
In addition to this absorption update, Metro said same-store sales improved 0.3% and net earnings climbed to $132.4 million (Canadian) for the fiscal second quarter, which ended March 11.
Overall sales of $2.9 billion (Canadian) rose 0.7% from the same period a year ago.
“We are pleased with our second quarter results that show sales, net earnings and tonnage growth against a background of food deflation and intense competition,” La Flèche said. “The growth reflects our effective execution and strong expense control.”