This title is a huge winner of the pandemic

Metro (TSX: MRU) is a leading food and pharmaceutical company in Québec and Ontario. The company sbeers and profits rose in the fourth quarter as the COVID-19 pandemic continued to provide an unusual level of growth in the food sector. This stock is a good buy, as it resists the pandemic.

Metro is experiencing strong growth in sales and profits

The company, which includes grocery chain Metro and drugstores Jean Coutu, reported sales of $ 4.14 billion for the 12 weeks ending September 26, up 7.4% over the same time of year. last. Same-store sales, an important metric that tracks sales growth unaffected by the opening of new stores, increased 10% in grocery banners in the fourth quarter.

This trend continues. Metro reported Wednesday that food sales in the same stores rose 11% in the four weeks since the end of the fourth quarter. Sales from the same pharmacy store increased 5.5% in the fourth quarter.

All of Canada’s largest grocery stores have seen an increase in sales this year, with public health restrictions deeply affecting the restaurant industry. Many Canadians have limited outings and cook more for themselves at home.

Metro announced that its fourth quarter profit was up 11.4% from a year ago. The company’s net income for the fourth quarter was $ 186.5 million, or $ 0.74 per share, compared to $ 167.4 million, or $ 0.66 per share, for the same period last year. . On an adjusted basis, Metro claims it earned $ 193.1 million, or $ 0.77 per share, for the quarter compared to adjusted earnings of $ 174 million, or $ 0.68 per share, a year ago.

Customers are also putting pressure on retailers’ e-commerce operations. Metro said its online food sales increased 160% from the fourth quarter of last year.

The Montreal-based retailer tries to meet demand. On Wednesday Metro announced plans to double the number of stores offering online order pickup by the end of next year from 40 stores currently offering service to more than 100. Metro will also open a dedicated store next summer exclusively. for online customers in the Montreal Area.

A job dispute at the Jean Coutu distribution center, which began on September 23 and now resolved, is likely to affect Jean Coutu’s sales in the first quarter, the company said.

For the full year 2020 ending September 26, Metro recorded sales growth of 7.3% to nearly $ 18 billion. The company’s full-year net income was $ 796.4 million, or $ 3.14 per share, compared with $ 714.4 million or $ 2.78 per share a year earlier. On an adjusted basis, Metro earned $ 829.1 million, or $ 3.27 per share, for the full year, compared to adjusted earnings of $ 731.6 million, or $ 2.84 per share, a year ago.

On Wednesday, Metro announced the renewal of its share buyback program. As of November 25, the company has the option to repurchase up to seven million, or about 2.8%, of its outstanding shares over the next year. Over the past 12 months, the company has spent $ 240.8 million to repurchase 4.26 million common stock.

Metro shares will continue to win the pandemic

The ongoing pandemic continues to affect Metro’s business. The company expects food revenues to continue growing at higher-than-normal rates from last year in the near term as part of its restaurant and food service sales will continue to shift to the grocery network.

Metro is a great defensive stock that can give your portfolio some protection in the event of a market crash. The stock has increased by about 15% since the beginning of the year.