Metro hikes dividend as profit rises 13.4%

Metro Inc. says its quarterly dividend will be going up 16.7 per cent amid expectations that the grocery company is well-positioned to continue strong growth in the coming quarters.

The Montreal-based company says its net income in the first quarter ended Dec. 20 was up 13.4 per cent from a year ago, rising to $112.5-million from $99.2-million a year earlier.

Metro's adjusted earnings were up 21.6 per cent to $1.35 per share, four cents above analyst estimates from Thomson Reuters.

Sales totalled $2.84-billion, up 5.2 per cent, from $2.7-billion, or 5.2 per cent, from a year earlier.

The company's chief executive says he's confident Metro is well-positioned to continue growth over the coming quarters.

Metro says it wiill increase its dividend by five cents to 35 cents per share with the March 16 payment to shareholders, who have their annual meeting Tuesday in Montreal.