Canada's Metro reports higher profit on sales gain

(Reuters) - Canada's Metro Inc reported higher earnings on Tuesday, a day after boosting its quarterly dividend by more than 16 percent, as sales at its supermarket chain rose in the three months to December 22.

Net earnings rose to C$121.4 million ($120.9 million), or C$1.23 a share, from C$103.7 million, or C$1.01, a year earlier. Sales rose 2.7 percent to C$2.70 billion.

Sales at established stores, an important indicator for retailers, rose 1.5 percent in the fiscal first quarter.

Late on Monday, the Montreal-based firm declared a dividend of 25 Canadian cents a share, up from 21.5 Canadian cents last quarter.

Last week, Metro said it would sell nearly half of its stake in Alimentation Couche-Tard Inc , a convenience store and gasoline station operator, for nearly C$479 million.

Metro, along with rivals such as Loblaw Cos Ltd , are facing rising competition as Wal-Mart Stores Inc expands its grocery offerings in Canada. Target Corp , the No. 2 U.S. discounter, is opening its first Canadian stores this spring, and it will also sell groceries.

($1 = $1.00 Canadian)

(Reporting by Allison Martell; Editing by Gerald E. McCormick and Leslie Gevirtz)

Source: http://news.yahoo.com/canadas-metro-reports-higher-profit-sales-gain-165639918--finance.html

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