Annual bonuses for Metro’s top five executives rose 13.7% as soaring food inflation boosted the grocer’s sales. In total, the Montreal-based company’s five executives shared total compensation of $13.2 million in fiscal 2022 (ended Sept. 24), according to regulatory filings released by the company. This is a 4% increase over the same period last year.
The increase in their annual bonuses, a component of corporate performance-related compensation, was more generous, however, as Metro sales benefited from food inflation. The five executives shared an amount of $3.7 million in annual bonuses, an increase of 13.7% compared to last year.
For his part, the President and Chief Executive Officer, Eric La Flèche, obtained a total compensation of 5.4 million, which represents an increase of 6.8%. His annual bonus jumped 15% to 1.5 million.
In the circular sent to shareholders, Metro explains that the company’s board of directors has established “high sales targets” to determine the amount of the bonuses. The company explains that these targets were exceeded during the second half of the fiscal year “as significant food inflation boosted sales and accelerated a shift of consumers to discount stores, which was positive for our banners. at a discount”.
In 2022, the revenues of the company, which includes the Metro, Jean Coutu and Super C brands, amounted to 18.9 billion, an increase of 3.3%. Net profit, for its part, increased by 2.9%, to 849.5 million.
In September, at the end of Metro’s fiscal year, food inflation stood at 10.3% in Canada, according to Statistics Canada data. Households have probably not reached the end of their groceries, according to forecasts by the team of economists from Desjardins Group. Inflation in the food segment will reach 5.6% in 2023, on average. From 10.3% last November, the pace should moderate to 3.2% in December 2023.
At a time when major Canadian grocers are being singled out for soaring food prices, Metro denies profiting from them, while its margins have remained relatively stable. Despite an 8.3% increase in revenue, to $4.4 billion, in the fourth quarter of its fiscal 2022 (ended September 24), gross margin remained stable. It reached 20.4%, the same threshold as last year. By comparison, the gross margin was 20.2% in 2019, before the pandemic. During the unveiling of the most recent quarterly results last November, management mentioned that it had had to deal with inflationary pressures, particularly for transportation and labour.