Metro : Annual Report 2025

About this update from Metro Inc.

Annual Report 2025 COMPANY PROFILE METRO INC. is a food and pharmacy leader in Québec and Ontario. As a retailer, franchisor, distributor, and manufacturer, the Corporation operates or services a network of 1,006 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, as well as 638 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners, providing employment directly or indirectly to more than 99,000 people. 2025 HIGHLIGHTS Sales of $22,006.7 million, up 3.7% Net earnings of $1,019.5 million, up 9.4% Adjusted net earnings (1) of $1,049.8 million, up 7.9% Fully diluted net earnings per share of $4.63, up 12.7% Adjusted fully diluted net earnings per share (1) of $4.77, up 10.9% Return on equity (1) of 14.5% Dividends per share increase of 10.5%, the 31 th consecutive year of dividend growth RETAIL NETWORK Québec Ontario New Brunswick Total Supermarkets Metro Metro Plus 184 Metro 133 317 Adonis 11 Adonis 5 16 Discount stores Super C 117 Food Basics 150 267 Neighbourhood stores Marché Richelieu 52 Marché Richelieu 1 53 Marché Ami 320 Marché Ami 6 326 Specialized stores Première Moisson 26 Première Moisson 1 27 Total food 710 289 7 1,006 Pharmacies Brunet Brunet Plus Brunet Clinique Clini Plus PJC Jean Coutu PJC Health PJC Health & Beauty 141 385 Metro Pharmacy Food Basics Pharmacy 78 PJC Jean Coutu PJC Health 7 PJC Jean Coutu PJC Health PJC Health & Beauty 27 219 419 Total pharmacies 526 85 27 638 FINANCIAL HIGHLIGHTS 2025 2024 2023 2022 2021 (52 weeks) (52 weeks) (53 weeks) (52 weeks) (52 weeks) OPERATING RESULTS (Millions of dollars) Sales 22,006.7 21,219.9 20,724.6 18,888.9 18,283.0 Operating income before depreciation and amortization, inventories write- down and impairments of assets 2,082.9 1,987.0 1,969.6 1,844.6 1,732.5 Net earnings 1,019.5 931.7 1,018.8 849.5 825.7 Adjusted net earnings (1) 1,049.8 972.9 1,006.6 922.1 854.2 Cash flows from operating activities 1,724.9 1,677.0 1,563.5 1,461.4 1,583.3 FINANCIAL STRUCTURE (Millions of dollars) Total assets 14,539.4 14,140.6 13,865.3 13,401.3 13,592.1 Current and non-current debt 2,955.3 2,674.3 2,665.6 2,342.8 2,636.8 Current and non-current lease liabilities 1,646.7 1,636.2 1,658.7 1,779.0 1,927.2 Equity 7,045.1 7,038.9 6,816.3 6,618.4 6,412.8 PER SHARE (Dollars) Basic net earnings 4.65 4.13 4.36 3.53 3.34 Fully diluted net earnings 4.63 4.11 4.35 3.51 3.33 Adjusted fully diluted net earnings (1) 4.77 4.30 4.30 3.82 3.44 Dividends 1.4450 1.3075 1.1825 1.0750 0.9750 FINANCIAL RATIOS (%) Operating income before depreciation and amortization, inventories write-down and impairments of assets / Sales 9.5 9.4 9.5 9.8 9.5 Return on equity (1) 14.5 13.4 15.2 13.0 13.1 SHARE PRICE (Dollars) High 109.20 87.22 78.90 73.54 66.25 Low 81.01 65.43 67.09 59.14 52.63 Closing price (At year-end) 92.20 84.84 70.54 69.84 60.18 MESSAGE FROM THE CHAIR OF THE BOARD Dear Shareholders, Despite a challenging economic environment marked by international trade tensions, rising costs for certain products caused by factors beyond our control, and rising unemployment, the Company posted solid results for fiscal year 2025. Indeed, the Company maintained a very strong financial performance during this period and saw its revenues exceed $22 billion for the first time. I would like to highlight the exemplary work of the management team, employees, merchants, and pharmacist-owners who enabled the Company to achieve this outstanding performance. During fiscal 2025, your Board of Directors continued its work to support and monitor the Company's various strategic and business plans, plans that, like last year, focused on accelerating the opening of discount grocery stores while leveraging the complementary nature of conventional grocery stores and renovating and expanding our pharmacy network. The Board of Directors also closely monitored and supported management in relation to the deployment of the contingency plan and the implementation of measures to minimize the impact of the temporary closure of the Toronto frozen food distribution centre due to a mechanical problem in the refrigeration system. The Board is grateful for the work accomplished by all teams. Thanks to this work, Ontario stores continued to meet customer needs and distribution centre operations are expected (2) , for all intents and purposes, to return to normal operating levels by the end of December. Board of Directors Throughout the year, the Board of Directors, through its Governance and Corporate Responsibility Committee, continued to monitor the Company's activities related to the priorities set out in the 2022-2026 Corporate Responsibility Plan, including the strategy and initiatives put forward to combat climate change. As a result of the work accomplished by the Board of Directors during fiscal year 2024 in reviewing director compensation, the minimum component of deferred share units paid as directors' fees, once they have reached their minimum holding threshold, increased from 25% to 50% as of January 1, 2025. This new requirement better aligns the interests of directors with those of shareholders and reduces cash payments, even though directors' compensation has increased. As we do every year, as part of our shareholder engagement policy, the Chair of the Governance and Corporate Responsibility Committee and I met with some of the Company's major shareholders. Various topics were discussed during these meetings, including diversity and corporate responsibility, governance, board oversight of senior management succession, and board renewal processes. These discussions allowed us to engage in a constructive dialogue with the Company's shareholders on issues of importance to the Board, the Company, and all shareholders. These shareholders expressed satisfaction with the Company's performance and with the meetings we had with them. With regard to a shareholder's proposal to replace the Company's external auditors, the Board of Directors believes that the robust external regulatory framework, rigorous internal policies and procedures regarding auditor independence, and the fact that the quality and independence of the external auditors are evaluated by the Audit Committee on an annual basis mean that there should be no concern regarding the length of the term of the current external auditors. Furthermore, the Board of Directors, through the Audit Committee, has evaluated all of these factors and believes that the external auditors have the independence and expertise necessary to fulfill their mandate. Three directors will retire in January 2026. They are Ms. Christine Magee, who has served on the Board of Directors for ten years, and Messrs. François Jean Coutu and Michel Coutu, who have served on the Board of Directors for seven years. The Board of Directors has benefited greatly from their knowledge and experience, particularly in the areas of retail and pharmacy. On behalf of my colleagues and our shareholders, I would like to thank them for their significant contributions to the Board of Directors over the years. To fill these vacancies, the Board of Directors, through its Governance Committee, developed a well-structured recruitment process and retained the services of a firm with experience in recruiting directors. This process led to the recruitment of Ms. Geneviève Brouillette and Mr. Michael Motz, two highly talented candidates with solid experience in the Company's business sectors. With the arrival of these two independent candidates, the Board of Directors would, after their election, go from 12 to 11 members, 10 of whom would be independent, compared to 9 today. In addition, 45% of the members sitting on the Board of Directors would be women, which is an increase from 2025 and a first in the Company's history. I would like to express my gratitude to the members of the Board of Directors for their valuable collaboration and commitment to making METRO a successful, innovative, and inclusive company focused on the future. I would also like to thank our shareholders for their continued trust in us. Pierre Boivin Chairman of the Board MESSAGE FROM THE PRESIDENT AND CEO Thanks to the commitment of our teams and the trust of our customers, we ended fiscal 2025 with solid results in both the food and pharmacy divisions, despite a challenging economic environment. International trade tensions increased uncertainty and slowed economic growth. While overall inflation stabilized, the food Consumer Price Index (CPI) remained high, putting significant pressure on household budgets in a context of rising unemployment. In the food sector, the search for value by consumers is stronger than ever. Certain categories, such as meat, coffee, and fresh vegetables, were particularly impacted by shortages, increased production costs, and international trade tensions. These issues, which are beyond our control, kept pressure on the grocery basket. We continue to work tirelessly to offer the best possible value to our customers through effective merchandising programs, private label offerings, our Moi loyalty program, and rigorous in-store execution. The acceleration of discount store openings in Quebec and Ontario reflects market evolution. METRO is actively participating in this change with the opening of 12 new discount stores in 2025. We are also leveraging the complementarity of our conventional, discount, and specialty stores to meet diverse consumer needs and strengthen our competitive position. Our pharmacy division delivered strong performance, driven by sustained growth in prescriptions, specialty drugs, and professional services. Sales of over-the-counter medications, as well as health, beauty, and cosmetic products, also saw notable progress. True to our commitment to local sourcing, we have continued to prioritize local producers, thereby strengthening our contribution to the regional economy. Customers favour local products when they combine quality and accessibility, confirming the relevance of our commitment to offer a diverse range of products from our regions, both in food and non-food categories. Finally, METRO played an active role in implementing the Grocery Code of Conduct. Since 2021, we have been actively contributing with the Retail Council of Canada and industry stakeholders to promote principles of fairness and predictability. These principles aim to enhance transparency and stability in the supply chain, benefiting consumers and suppliers. In 2025, we continued our efforts with the Code Office to ensure its success and maintain trust in the food system. We are proud of our contribution to this initiative and are committed to supporting its application. Financial Results 2025 We ended our 2025 fiscal year on a strong note in the fourth quarter, achieving all the metrics of our financial framework for the year. Sales reached $22 billion, up 3.7%. The gross margin (1) was 19.9% of sales, up 20 basis points, while operating expenses stood at 10.4%. Our operating expense ratio for fiscal 2025 was negatively impacted by direct costs of $6.1 million related to the temporary shutdown of our frozen products distribution centre in Toronto. Adjusted net earnings (1) were $1,049.8 million, up 7.9% compared to the previous year. Adjusted diluted net earnings per share (1) were $4.77, up 10.9%. We also increased the dividend per share by 10.5%, marking the 31 st consecutive year of dividend growth. Highlights 2025 Retail Networks In partnership with our affiliated Metro merchants and our Jean Coutu and Brunet pharmacist-owners, we continued to invest in our food and pharmacy networks. In Quebec, we opened seven Super C stores. We also carried out major expansions or renovations in six Metro and Metro Plus stores and seven Super C stores in Quebec. In Ontario, we opened a new Metro store, a new Adonis store, and five new Food Basics stores, and completed major renovations in one Metro store and three Food Basics stores. Through our proximity banners, we integrated a new Marché Richelieu store into our network. In the pharmacy sector, two new Jean Coutu pharmacies were opened. Seven expansions and 17 major renovations were carried out at Jean Coutu. Two Brunet pharmacies were expanded. In Ontario, we opened a new Metro pharmacy. Distribution Network Operations were interrupted on September 12, 2025, at our frozen products distribution centre in Toronto due to a mechanical issue in the refrigeration system. METRO quickly executed its contingency plan to ensure store supply. Thanks to the commitment of our teams and the collaboration of our partners, all Metro and Food Basics stores in Ontario continued to meet customer needs. The required repairs were complex and affected several components of the refrigeration system. Operations gradually resumed at the centre in November, and we expect (2) to be essentially back to normal by the end of December. The financial impact of this situation was $22.5 million after tax ($30.6 million before taxes) in the fourth quarter of fiscal 2025, mainly from inventory losses and other direct costs. Additional non-recurring costs will also be incurred in the first quarter of fiscal 2026. Beyond the full restoration of our frozen products distribution centre, we remain focused on improving the efficiency of our supply chain. We are encouraged by the gains generated by our major investments in recent years. Loyalty In 2025, the Moi program continued its remarkable growth and consolidated its leadership position in Canada. We now have 4.95 million active members, including 2.9 million who registered during fiscal 2025. Contributing to our mission to help customers save on essential purchases, nearly $75 million was awarded in rewards. The program ranked first in Canada for member satisfaction in the food retailer and pharmacy categories. These results confirm the strength of our network and the complementarity of our banners, as well as our ability to offer a personalized experience. eCommerce Online food sales (1) growth outpaced stores sales, and we continue to invest to better meet the needs of customers seeking an omnichannel experience. We were able to extend our rapid delivery service to all our food banners following a new partnership with DoorDash. We also began to expand this service in our pharmacy networks at the end of our fiscal year. The service is available in 296 Jean Coutu pharmacies and Brunet pharmacies. In Ontario, the rollout of our in-store pickup service continued at Food Basics, for a total of 87 stores. The continued expansion of these services offers our customers greater flexibility to shop online at our banners, enriching the shopping experience for grocery and in pharmacy. Pharmacy Division Over the past year, pharmacists in the Jean Coutu and Brunet networks carried out more than 3.5 million consultations as part of their expanded scope of practice, confirming our essential role in community health. We intensified our efforts to promote clinical services offered in pharmacies, notably through the deployment of 25 Pharma Cliniques concepts. We also implemented initiatives to improve the patient experience, such as online appointments with pharmacists and prescription pickup in self-service lockers. These developments will enable pharmacists to carry out their growing professional activities more efficiently. Private Labels: A New Identity for a Stronger Brand At the beginning of the fiscal year, we introduced the new visual identity of our Irresistible private label to increase its visibility. The distinctive red band, now present in stores, online, and in our flyers, makes it easier for customers to identify products. This evolution strengthens brand awareness and encourages adoption, offering economical solutions without compromising on taste or quality. Irresistible embodies our commitment to offering accessible products that meet consumer expectations. This change led to growth in our private label product sales and provided an additional lever for our banners to stand out in the market. Corporate Responsibility In 2025, we reached key milestones in our responsible sourcing approach. In addition to publishing our second report under the Fighting Against Forced Labour and Child Labour in Supply Chains Act , we released our very first Human Rights Statement and updated our Supplier Code of Conduct. We continued our collaboration with Sphera to assess our suppliers' performance against the principles outlined in the Code, in place since 2023. This year, we implemented continuous improvement plans for those who do not meet our compliance threshold, with the aim of providing tangible support to help them raise their social and environmental standards. Furthermore, we announced a new ambitious goal in the fight against food waste: to increase by 30% by 2030 the proportion of food rescued from waste compared to 2024. This target reflects our conviction that food should first and foremost feed people, and it is part of our desire to contribute to food security while reducing our environmental footprint. On the climate change front, although we chose not to continue the validation process by the Science Based Targets initiative (SBTi), we remain committed to achieving our targets and continuing (2) the work we have started. In 2025, we obtained for the first time limited assurance for our Scopes 1 and 2 greenhouse gas emissions data, which decreased compared to 2023, our baseline year. In 2025, we continued to strengthen our collaboration with organizations promoting professional inclusion, in order to diversify our talent pools and increase our visibility among underrepresented groups, while fostering an ever more inclusive work environment. METRO was also selected in two categories by Canada's Top 100 Employers, as one of Montreal's best employers and as one of the best employers for young graduates in Canada. Employer of Choice METRO was recognized among Montreal's Top Employers for 2025. This annual competition, organized by the editors of Canada's Top 100 Employers, honors Greater Montreal employers who stand out in their industry for the quality of their work environment. At the beginning of our new fiscal year, in November, METRO was recognized as one of Canada's Most Admired™ Corporate Cultures for 2025 by Waterstone Human Capital. This prestigious award celebrates organizations that have built cultures that drive performance and sustain a competitive advantage Investing in Our Communities Community investment is deeply rooted in our values and is an integral part of our corporate responsibility approach. In 2025, we increased our corporate donations compared to 2024. For the third consecutive year, our community investment program was awarded Imagine Canada's PRISM certification, recognizing the anchoring of our initiatives in our purpose. We also launched METRO's Shared Kitchens in Ontario and continued their rollout in Quebec, with five inaugurations during fiscal 2025. Through this initiative, METRO aims to create collective gathering places at the heart of communities, promoting better access to healthy food for people experiencing food insecurity. Outlook and priorities 2026 (2) Day after day, our teams are fully committed to offering our customers the best possible value across all our banners. Our priorities for fiscal 2026 remain unchanged and are part of our mission: Achieve our budgets and business plans, including the opening of a dozen discount stores and the renovation of about thirty pharmacies; Execute with excellence in stores and pharmacies; Reduce costs and gain efficiency; Engage our customers and increase their loyalty; Attract, develop and retain the best team; Achieve our corporate responsibility goals. In 2026, we will continue to focus our efforts on achieving efficiency gains and improving the service offered to our store network, notably with a continuous improvement program aimed at optimizing our in-store operations through process digitization and the reduction of non-value-added tasks. This approach will allow us to improve efficiency, strengthen loss prevention, and integrate innovative technological solutions to support our long-term growth. In a context where our customers are seeking value more than ever, we will continue to pay particular attention to controlling our expenses to do everything possible to offer very competitive prices. During this fiscal year, we will also continue to develop our network by investing in the modernization of our stores and pharmacies, ensuring we offer the right assortment with the right banner in the right place, and opening new sites where we believe we can effectively meet consumer demand. We will also strengthen the range of professional pharmacy services we offer in order to facilitate access to care and optimize the time dedicated to clinical activities. Acknowledgments I would like to express my sincere gratitude to all our employees, affiliated merchants, franchisees and pharmacist-owners, as well as my colleagues on the management team, for their daily commitment to our customers and the patients. Thank you also to the members of the Board of Directors for their vigilance and constant support. Finally, I warmly thank you, METRO shareholders, for the trust you place in us. Eric La Flèche President and Chief Executive Officer This page intentionally left blank MANAGEMENT'S DISCUSSION AND ANALYSIS AND CONSOLIDATED FINANCIAL STATEMENTS For the year ended September 27, 2025 Page Overview............................................................................................................................................................................ 13 Purpose , mission and strateg y ...................................................................................................................................... 13 Key performance indicators............................................................................................................................................ 15 Key achievements............................................................................................................................................................ 16 Selected annual information........................................................................................................................................... 18 Outlook .............................................................................................................................................................................. 18 Operating results.............................................................................................................................................................. 19 Quarterly highlights.......................................................................................................................................................... 21 Cash position.................................................................................................................................................................... 23 Financial position ............................................................................................................................................................. 24 Sources of financing........................................................................................................................................................ 28 Contractual obligations.................................................................................................................................................... 28 Related party transactions.............................................................................................................................................. 28 Fourth quarter................................................................................................................................................................... 29 Derivative financial instruments and hedge accounting ............................................................................................ 31 New accounting standards ............................................................................................................................................. 31 Forward-looking information ........................................................................................................................................... 32 Non-GAAP and other financial measurements ........................................................................................................... 32 Controls and procedures ................................................................................................................................................ 33 Significant judgments and estimates ............................................................................................................................ 34 Risk management ............................................................................................................................................................ 35 Management's responsibility for financial reporting ................................................................................................... 40 Independent auditors' report .......................................................................................................................................... 41 Annual consolidated financial statements .................................................................................................................... 45 . The following Management's Discussion and Analysis sets out the financial position and consolidated results of METRO INC. for the fiscal year ended September 27, 2025, and should be read in conjunction with the annual consolidated financial statements and the accompanying notes as at September 27, 2025. This report is based upon information as at December 3, 2025 unless otherwise indicated. Additional information, including the Annual Information Form and Certification Letters for Fiscal 2025, is available on the SEDAR website at https://www.sedarplus.ca . ‌The Corporation is a leader in food and pharmaceutical industries in Québec and Ontario. The Corporation, as a retailer, franchisor, distributor or manufacturer, operates under different grocery banners in the conventional supermarket and discount segments. For consumers seeking a higher level of service and a greater variety of products, we operate 317 supermarkets under the Metro and Metro Plus banners. The 267 discount stores operating under the Super C and Food Basics banners offer products at low prices to consumers who are both cost and quality-conscious. The Adonis banner, which currently has 16 stores, is specialized in fresh products as well as Mediterranean and Middle-Eastern products. The Corporation also operates Première Moisson, a banner specialized in premium quality artisan bakery, pastry, and deli products. Première Moisson sells its products to the Corporation's stores, to restaurants and other chains as well as directly to consumers in its 27 stores. The majority of the stores are owned by the Corporation or by structured entities and their financial statements are consolidated with those of the Corporation. Independent owners bound to the Corporation by leases or affiliation agreements operate a large number of Metro and Metro Plus stores. The Corporation supplies these stores and their purchases are included in our sales. The Corporation also acts as a distributor for independent neighbourhood grocery stores. Their purchases are included in the Corporation's sales. The Corporation also acts as franchisor and distributor for 419 PJC Jean Coutu, PJC Health and PJC Health & Beauty pharmacies as well as 141 Brunet Plus, Brunet, Brunet Clinique, and Clini Plus pharmacies, held by pharmacist-owners. The Corporation supplies these pharmacies and their purchases are included in our sales. The Corporation operates 78 pharmacies in Ontario under Metro Pharmacy and Food Basics Pharmacy banners and their sales are included in the Corporation's sales. Sales also include the supply of non-franchised pharmacies. The Corporation is also active in generic drug distribution through its subsidiary Pro Doc Ltée. ‌PURPOSE, MISSION AND STRATEGY For more than 75 years, METRO has made its mark, first in Québec and then in Ontario and New Brunswick, by meeting the nutrition and health needs of the communities it serves. Its organic and acquisition-led growth has positioned it today as a leader in the food and pharmacy sectors in Eastern Canada. METRO's purpose is a reflection of its increased presence in health and represents its current reality and aspirations. For METRO, nourishing the health and well-being of our communities is the work our employees undertake with excellence, day after day, to feed and serve the people of the communities where we operate. Our purpose is based on four pillars, which are anchored in our daily practices and ways. These guide our actions and decisions, allowing us to fulfill our mission of exceeding our customers' expectations every day to earn their longterm loyalty. Customer focus We put the customer at the centre of all our decisions in each of our banners. Offering them the best experience as well as quality products at competitive prices and professional health services to help them live healthier lives are at the heart of our actions. Best team We strive to attract and retain the best talent by offering them opportunities for development and advancement in a collaborative, healthy and safe environment where they can achieve their full potential. In addition, we are committed to ensure that our employees make a difference at work and in the communities where we live and work. Operational Excellence We set high operating standards and are results-oriented. We measure our performance systematically to be agile to our customers' needs and the competition. Financial Discipline We deliver the expected results and achieve our objectives by managing our resources optimally and by exercising strict financial control. The annualized growth targets we will strive to achieve over the medium and long term are: Sales growth between 2% and 4%; Adjusted earnings before net financial costs and income taxes (1) growth between 4% and 6%; Adjusted fully diluted net earnings per share (1) growth between 8% and 10%. Our assumptions related to these performance targets include the following: Ability to continue (2) to execute our business model, our strategic plan and our capital plan; Medium to long-term inflation rate (CPI) in line with historical levels; Population growth rate remains stable; No material change in the macro-economic or regulatory environment; No material shift in the competitive landscape; No material labour, supply chain or distribution centre disruptions; Ability to continue to deliver merchandising and promotional strategies that resonate with our customers; Ability to continue to operate our distribution centres and stores efficiently and effectively. The occurrence of certain risks could impact our ability to achieve our performance targets, notably disruptions in the supply chain, distribution centres or technological systems, a material labour shortage or conflict or an event that significantly tarnishes our brand or reputation. For further details see section "Risk management" of this report. The foundation of our business strategy remains corporate responsibility and the continued integration of ESG factors into our business model. We aim (2) to ensure that our actions bring value to METRO, and to our stakeholders -customers, employees, suppliers, shareholders and community partners. ‌KEY PERFORMANCE INDICATORS We evaluate the Corporation's overall performance using the following key indicators: sales: sales growth; same-store sales growth; average customer transaction size and number of transactions; average weekly sales; average weekly sales per square foot; sales per hour worked by store to assess productivity; percentage of sales represented by customers who are loyalty program members; market share; customer satisfaction; gross margin percentage; operating income before depreciation and amortization, inventories write-down and impairments of assets as a percentage of sales; adjusted earnings before net financial costs and income taxes (1) growth; net earnings as a percentage of sales; net earnings per share growth; adjusted fully diluted net earnings per share (1) growth; retail network investments: dollar value and nature of store investments; number of stores; store square footage growth; return on equity; total shareholder returns. ‌KEY ACHIEVEMENTS Sales for Fiscal 2025 totalled $22,006.7 million, up 3.7% compared with $21,219.9 million for Fiscal 2024. Net earnings for Fiscal 2025 were $1,019.5 million compared with $931.7 million for Fiscal 2024, while fully diluted net earnings per share were $4.63 compared with $4.11 in 2024, up 9.4% and 12.7% respectively. Adjusted net earnings (1) for Fiscal 2025 totalled $1,049.8 million compared with $972.9 million for Fiscal 2024 and adjusted fully diluted net earnings per share (1) for Fiscal 2025 amounted to $4.77 compared with $4.30 in 2024, up 7.9% and 10.9% respectively. We realized several achievements over the fiscal year, including the following major ones: In Fiscal 2025 we accelerated the investment in our retail network. In Ontario, we opened five Food Basics stores, bringing the total to 150 locations, as we celebrated the discount banner's 30th anniversary. We also opened one Metro store and one Adonis store, and completed major renovations at four other stores. In Quebec, we opened seven new Super C stores including five conversions from Metro stores, and, with our affiliated retailers, carried out major renovations and expansions at 13 other stores. On the pharmacy side, we opened two Jean Coutu pharmacies in Quebec and one Metro Pharmacy in Ontario, and carried out major renovations and expansions in 26 locations. At the start of the fiscal year, we officially launched our exclusive loyalty program, Moi Rewards , in Ontario, expanding on the successful 2023 launch of METRO's Moi loyalty program in Quebec. We are now able to reward close to 5 million members for their everyday purchases across our various banners in Quebec, Ontario and New Brunswick. In addition, last April, Moi Rewards launched the more for Mo i initiative, a new partnership network that offers even more value to Moi Rewards members through new exclusive offers and partnerships. Now available to members on MoiRewards.ca, more for Moi gives them access to a wide range of current offers and exclusive discounts on online purchases from several major brands. In 2025, METRO continued to grow its eCommerce services, expanding delivery and pickup options to provide customers with greater flexibility and convenience across our food and pharmacy banners. Our focus remained on enhancing the omnichannel experience and introducing new solutions to meet evolving customer expectations. This year, we announced a new partnership with DoorDash, extending our one-hour delivery service to all food banners in 429 stores. We also launched the DoorDash marketplace for our pharmacy banners, launching in to 296 locations by early October. Within our discount banners, we expanded Click & Collect to additional Food Basics stores. This convenient service is now available in 87 Food Basics, 104 Super C, 236 Metro, and 313 Jean Coutu locations. In addition, same-day delivery via Instacart was introduced at Super C (62 stores) and Food Basics (101 stores), giving customers even more flexibility in how they shop. In April and July, our discount banners, Super C and Food Basics, and Too Good To Go have announced a partnership - an initiative that offers customers another way to save money and help fight food waste. One year after its successful launch in most Metro stores in Quebec and Ontario, the anti-waste app is now being rolled out at all discount stores in both provinces. Thanks to this partnership, our discount banners and Too Good To Go are making it possible for consumers to buy unsold, still-edible food from the day at a fraction of the price. Last April, the firm Léger released the results of its annual Reputation study in which our banner Jean Coutu ranked first as the most admired brand among Quebecers. This study evaluates the reputation of some 400 companies in Quebec and Canada, spread over more than 30 different sectors of activity, and is based on six main pillars - financial strength, social responsibility, honesty and transparency, quality, attachment, and innovation - that influence a company's reputation. Jean Coutu also ranked second in the employer brand ranking. These marks of trust from the public reflect the outstanding work and commitment of the affiliated pharmacist-owners in our network and all the teams in delivering customer service that goes above and beyond expectations. METRO's private labels once again stood out at the 32 nd annual Canadian Grand Prix New Product Awards, winning a total of eight awards. Organized by the Retail Council of Canada, this competition recognizes the best product innovations in the food retail industry across Canada. These awards highlight our ongoing commitment and sincere desire to offer innovative, high-quality products with strong added value. METRO is proud to announce that its Irrésistible brand has won a double award at the 2025 Vertex Awards, for the complete redesign of its brand image and for its festive collection. Presented by Velocity Institute and Global Retail Brands, this internationally renowned competition celebrates the most innovative private label packaging designs. Last February, the Personnelle Cosmetics brand got a makeover with the launch of a revamped image: a new logo and a new slogan - an opportunity to evolve the brand, rejuvenate it and focus on what defines it. The new visual identity, combined with the new slogan, My Personnelle Beauty, gives the brand a renewed momentum. The year 2025 marked the fourth year of implementation of our 2022-2026 Corporate Responsibility Plan. Several of our targets reached key milestones, and we are on track to achieve most of them. Environmental, social and governance (ESG) issues are considered at all levels of the organization and are well integrated into our operations. We continue to adapt our approach based on stakeholder expectations and the evolving regulatory landscape, which we are closely monitoring, particularly with regard to human rights. In addition to publishing our second report under the Fighting Against Forced Labour and Child Labour in Supply Chains Act , we also released our very first Human Rights Statement and updated our Supplier Code of Conduct for responsible procurement in 2025. Since 2023, we have been working with Sphera to assess our partners' performance against the principles outlined in the Code. This year, we implemented continuous improvement plans for those who do not meet our compliance threshold, with the aim of providing tangible support to help them improve their social and environmental practices. In terms of waste, our efforts are paying off, resulting in increased diversion rates in stores as well as in our distribution and production centres compared to 2024. In 2025, we adopted a new target to increase the proportion of food rescued from waste by 30% by 2030 compared to 2024. This target reflects our conviction that food should, first and foremost, fulfill its primary purpose: nourish people. Climate change remains a priority. Although the Corporation chose to withdraw from the Science Based Targets initiative (SBTi) validation process, it is maintaining its five short-term GHG emissions reduction targets and is continuing the work it has begun. For the first time, our external auditor provided limited assurance for our Scopes 1 and 2 climate data, which decreased compared to 2023, our baseline year. This assurance further strengthens the credibility of our approach and disclosures. At METRO, community investment is deeply rooted in our values and is an integral part of our corporate responsibility approach. In 2025, we continued to implement our community investment strategy and increased our corporate donations compared to 2024. For the third consecutive year, our community investment program was awarded Imagine Canada's PRISM certification, confirming that our initiatives are deeply rooted in our purpose. We also launched the METRO Shared Kitchens in Ontario and continued their rollout in Québec, with five kitchens inaugurated during fiscal 2025. Through this initiative, METRO aims to build collective gathering places at the heart of communities to improve access to healthy food for people experiencing food insecurity. In 2025, we also strengthened our collaborations with organizations working to promote professional inclusion, with the goal of diversifying our talent pools and increasing our visibility among underrepresented groups, while fostering an increasingly inclusive work environment. METRO was also recognized in two categories by Canada's Top 100 Employers: as one of Montreal's Top Employers and as one of Canada's Top Employers for Young People. ‌2025 2024 Change 2023 Change (Millions of dollars, unless otherwise indicated) (52 weeks) (52 weeks) % (53 weeks) % Sales 22,006.7 21,219.9 3.7 20,724.6 2.4 Net earnings attributable to equity holders of the parent 1,017.0 928.8 9.5 1,014.8 (8.5) Net earnings attributable to non-controlling interests 2.5 2.9 (13.8) 4.0 (27.5) Net earnings 1,019.5 931.7 9.4 1,018.8 (8.5) Basic net earnings per share 4.65 4.13 12.6 4.36 (5.3) Fully diluted net earnings per share 4.63 4.11 12.7 4.35 (5.5) Adjusted net earnings (1) 1,049.8 972.9 7.9 1,006.6 (3.3) Adjusted fully diluted net earnings per share (1) 4.77 4.30 10.9 4.30 - Return on equity (1) (%) 14.5 13.4 - 15.2 - Dividends per share (Dollars) 1.4450 1.3075 10.5 1.1825 10.6 Total assets 14,539.4 14,140.6 2.8 13,865.3 2.0 Current and non-current portions of debt 2,955.3 2,674.3 10.5 2,665.6 0.3 Sales for Fiscal 2025 totalled $22,006.7 million, up 3.7% compared with $21,219.9 million for Fiscal 2024. Sales for Fiscal 2024 totalled $21,219.9 million, up 2.4% compared to $20,724.6 million for Fiscal 2023, and up 4.4% based on 52 weeks in 2023. Net earnings for Fiscal 2025, 2024 and 2023 totalled $1,019.5 million, $931.7 million and $1,018.8 million, respectively, while fully diluted net earnings per share amounted to $4.63, $4.11 and $4.35. Taking into account the items relating to Fiscal 2025 and 2024 shown in the "Net earnings and fully diluted net earnings per share (EPS) adjustments (1) " table in the "Operating results" section, as well as for Fiscal 2023, a favourable tax adjustment in respect of prior years, adjusted net earnings (1) for Fiscal 2025 stood at $1,049.8 million compared with $972.9 million for Fiscal 2024 and $1,006.6 million for Fiscal 2023, while adjusted fully diluted net earnings per share (1) was $4.77 for Fiscal 2025 and $4.30 for 2024 and 2023, up 10.9% in 2025 and flat in 2024. ‌OUTLOOK (2) Operations at our frozen food distribution centre in Toronto resumed on November 10 and we expect to be essentially back to normal by the end of December. We estimate that the direct costs associated with the temporary shutdown of our distribution centre will impact our net earnings by approximately $15 to $20 million in the first quarter of Fiscal 2026. The impact on sales and gross profit is expected to be modest given the contingency plan in place. In addition to the ramp-up of the freezer, our focus remains on realizing efficiency gains throughout our supply chain and store network while we continue to execute on our plan to accelerate the development of our growing discount banners with the planned opening of about a dozen new or converted stores in the next fiscal year. We remain steadfast in our efforts to deliver the best value possible to our customers through our effective merchandising programs, strong private labels, the Moi program, and consistent execution at store level. ‌OPERATING RESULTS SALES Sales for Fiscal 2025 totalled $22,006.7 million, up 3.7% compared with $21,219.9 million for Fiscal 2024, driven by higher sales in our discount and pharmacy retail networks. Food same-store sales (1) were up 2.4% (up 2.7% in 2024). Online food sales (1) in 2025 increased by 18.5% (up 45.6% in 2024) compared to last year, mostly driven by higher partnership sales while online food sales (1) . Pharmacy same-store sales (1) were up 5.6% (5.2% in 2024), with a 6.7% increase in prescription drugs (1) and a 3.2% increase in front-store sales (1) . OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION, INVENTORIES WRITE-DOWN AND IMPAIRMENTS OF ASSETS This earnings measurement excludes financial costs, taxes, depreciation and amortization, inventories write-down and impairments of assets. Operating income before depreciation and amortization, inventories write-down and impairments of assets for Fiscal 2025 totalled $2,082.9 million, or 9.5% of sales, up 4.8% versus Fiscal 2024. Fiscal 2025 included direct costs of $6.1 million related to the temporary shutdown of our frozen food distribution centre in Toronto. Fiscal 2024 benefited from a gain on sale of assets of $6.8 million. Gross margin (1) for Fiscal 2025 was 19.9% versus 19.7% for Fiscal 2024. The margin improvement in the year is partly attributable to productivity gains at our food distribution centres and shrink improvement in stores. Operating expenses as a percentage of sales for Fiscal 2025 were 10.4%, flat versus last year. Operating expenses as a percentage of sales for Fiscal 2025 were unfavourably impacted by $6.1 million of direct costs related to the temporary shutdown of our frozen food distribution centre in Toronto. DEPRECIATION AND AMORTIZATION Total depreciation and amortization expense for Fiscal 2025 was $594.4 million versus $570.4 million for Fiscal 2024. The increase in depreciation and amortization expense is mainly due to higher retail investments and the commissioning of investments in our supply chain, including some automation technology in the Pharmacy division and the final phase of our fresh distribution centre in Toronto in the summer of 2024. INVENTORIES WRITE-DOWN The Corporation recognized an expense of $24.5 million for the write-down to net realizable value of inventories during the fiscal year ended September 27, 2025. This write-down relates to frozen product inventories that were deemed unsalvageable following a mechanical failure of the refrigeration system at the frozen food distribution centre in Toronto. The operations at the distribution centre were stopped on September 12, 2025 and had not resumed as of September 27, 2025. IMPAIRMENTS OF ASSETS During Fiscal 2024, the Corporation recorded $20.8 million of impairments of assets resulting from the decision to have Metro stores in Ontario withdraw from the Air Miles® loyalty program in the summer of 2024. This impairment represents the entire carrying value of the loyalty program asset. NET FINANCIAL COSTS Net financial costs for Fiscal 2025 were $143.8 million versus 145.7 million for Fiscal 2024. The decrease in net financial costs is mainly due to lower interest expense on net debt partly offset by lower capitalized interest. INCOME TAXES The income tax expense of $300.7 million for Fiscal 2025 and $318.4 million for Fiscal 2024 represented effective tax rates of 22.8% and 25.5% respectively. The decrease in the effective tax rate in 2025 is mainly attributable to a provincial tax holiday related to the commissioning of our new automated distribution centre for fresh and frozen products in Terrebonne and income tax adjustments in respect of prior years. The total tax holiday represents approximately $66 million and we estimate it will be recognized over a period of 3 years (2) . NET EARNINGS AND ADJUSTED NET EARNINGS (1) Net earnings for Fiscal 2025 were $1,019.5 million compared with $931.7 million for Fiscal 2024, while fully diluted net earnings per share were $4.63 compared with $4.11 in 2024, up 9.4% and 12.7% respectively. Excluding the specific items shown in the table below, adjusted net earnings (1) for Fiscal 2025 totalled $1,049.8 million compared with $972.9 million for Fiscal 2024, and adjusted fully diluted net earnings per share (1) amounted to $4.77 for Fiscal 2025 versus $4.30 for the prior year, up 7.9% and 10.9% respectively. Net earnings and fully diluted net earnings per share (EPS) adjustments (1) 2025 2024 Change (%) Net earnings Fully diluted Net earnings Fully diluted Fully (Millions of EPS (Millions of EPS Net diluted dollars) (Dollars) dollars) (Dollars) earnings EPS Per financial statements 1,019.5 4.63 931.7 4.11 9.4 12.7 Inventories write-down and other direct costs due to the freezer issue, net of taxes of $8.1 22.5 - Loss on impairment of a loyalty program, net of taxes of $2.7 - 18.1 Gain on disposal of an investment in an associate, net of taxes of $1.6 - (5.4) Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, net of taxes of $10.2 28.4 28.5 Favourable resolution of a tax position in respect of prior years (20.6) - Adjusted measures (1) 1,049.8 4.77 972.9 4.30 7.9 10.9 ‌QUARTERLY HIGHLIGHTS (Millions of dollars, unless otherwise indicated) 2025 2024 Change (%) Sales Q1 (3) 5,117.1 4,974.2 2.9 Q2 (3) 4,909.9 4,655.5 5.5 Q3 (4) 6,871.0 6,651.8 3.3 Q4 (3) 5,108.7 4,938.4 3.4 Fiscal 22,006.7 21,219.9 3.7 Net earnings Q1 (3) 259.5 228.5 13.6 Q2 (3) 220.0 187.1 17.6 Q3 (4) 323.0 296.2 9.0 Q4 (3) 217.0 219.9 (1.3) Fiscal 1,019.5 931.7 9.4 Adjusted net earnings (1) Q1 (3) 245.4 235.0 4.4 Q2 (3) 226.6 206.4 9.8 Q3 (4) 331.8 305.0 8.8 Q4 (3) 246.0 226.5 8.6 Fiscal 1,049.8 972.9 7.9 Fully diluted net earnings per share (Dollars) Q1 (3) 1.16 0.99 17.2 Q2 (3) 0.99 0.83 19.3 Q3 (4) 1.48 1.31 13.0 Q4 (3) 1.00 0.98 2.0 Fiscal 4.63 4.11 12.7 Adjusted fully diluted net earnings per share (1) (Dollars) Q1 (3) 1.10 1.02 7.8 Q2 (3) 1.02 0.91 12.1 Q3 (4) 1.52 1.35 12.6 Q4 (3) 1.13 1.02 10.8 Fiscal 4.77 4.30 10.9 (3) 12 weeks (4) 16 weeks Sales in the first quarter of Fiscal 2025 ended on December 21, 2024 were $5,117.1 million, up 2.9% versus the first quarter of the prior year which ended on December 23, 2023. Sales were negatively impacted by the transfer of two significant pre-Christmas shopping days to the second quarter this year. Food same-store sales (1) were up 1.0% in the first quarter of Fiscal 2025 and up 2.4% when adjusting for the Christmas shift. Online food sales (1) were up 18.6% versus last year. When adjusting for the sales tax holiday, our food basket inflation was slightly higher than the reported CPI for food purchased from stores. Pharmacy same-store sales (1) were up 5.1% with a 7.3% increase in prescription drugs (1) and a 0.5% increase in front-store sales (1) . When adjusting for the Christmas shift, the increase in front-store sales was 1.9%. Sales in the second quarter of Fiscal 2025 ended on March 15, 2025 were $4,909.9 million, up 5.5% versus the second quarter of the prior year which ended on March 16, 2024. Sales were positively impacted by the transfer of two significant pre-Christmas shopping days to the second quarter this year. Food same-store sales (1) were up 5.3% in the second quarter of Fiscal 2025 and up 3.9% when adjusting for the Christmas shift. Online food sales (1) were up 26.2% versus last year. When adjusting for the sales tax holiday, our food basket inflation was slightly lower than the reported CPI for food purchased from stores. Pharmacy same-store sales (1) were up 7.0% with a 7.8% increase in prescription drugs (1) and a 5.3% increase in front-store sales (1) . When adjusting for the Christmas shift, the increase in front-store sales was 3.7%. Sales in the third quarter of Fiscal 2025 ended on July 5, 2025 were $6,871.0 million, up 3.3% versus the third quarter of the prior year which ended on July 6, 2024, driven by higher sales in our retail network. Food same-store sales (1) were up 1.9% in the third quarter of Fiscal 2025 (2024 - 2.4%). Online food sales (1) were up 14.4% versus last year (2024 - 34.3%). Our food basket inflation was generally in line with the reported CPI for food purchased from stores. Pharmacy same-store sales (1) were up 5.5% (2024 - 5.2%), with a 6.2% increase in prescription drugs (1) and a 4.0% increase in front-store sales (1) , primarily driven by over-the-counter products, cosmetics, and health and beauty. Sales in the fourth quarter of Fiscal 2025 ended on September 27, 2025 were $5,108.7 million, up 3.4% versus the fourth quarter of the prior year, driven by higher sales in our discount and pharmacy retail networks. Food same-store sales (1) were up 1.6% in the fourth quarter of Fiscal 2025 (2024 - 2.2%). Online food sales (1) were up 19.8% versus last year (2024 - 27.6%). Our food basket inflation was below the reported CPI of 3.4% for food purchased from stores. Pharmacy same-store sales (1) were up 4.8% (2024 - 5.7%), with a 5.5% increase in prescription drugs (1) and a 2.9% increase in front-store sales (1) , primarily driven by over-the-counter products, cosmetics, and health and beauty. Net earnings for the first quarter of Fiscal 2025 were $259.5 million compared with $228.5 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $1.16 compared with $0.99 in 2024, up 13.6% and 17.2% respectively. Adjusted net earnings (1) for the first quarter of Fiscal 2025 totalled $245.4 million compared with $235.0 million for the corresponding quarter of 2024, up 4.4%. Adjusted fully diluted net earnings per share (1) for the first quarter of Fiscal 2025 were $1.10, versus $1.02 in 2024, up 7.8%. The first quarters of 2025 and 2024 included an adjustment for the pre-tax amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition of $8.9 million, as well as the income taxes relating to this item and the first quarter of 2025 also included a $20.6 million adjustment regarding the favourable resolution of an income tax position related to prior years. Net earnings for the second quarter of Fiscal 2025 were $220.0 million compared with $187.1 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $0.99 compared with $0.83 in 2024, up 17.6% and 19.3% respectively. Adjusted net earnings (1) for the second quarter of Fiscal 2025 totalled $226.6 million compared with $206.4 million for the corresponding quarter of 2024, and adjusted fully diluted net earnings per share (1) for second quarter of Fiscal 2025 were $1.02, versus $0.91 in 2024, up 9.8% and 12.1% respectively. The second quarters of 2025 and 2024 included an adjustment for the pre-tax amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition of $8.9 million, as well as the income taxes relating to this item. The second quarter of 2024 also included a loss on the impairment of a loyalty program of $20.8 million and a gain on disposal of an investment in an associate of $7.0 million, as well as the income taxes relating to these items. Net earnings for the third quarter of Fiscal 2025 were $323.0 million compared with $296.2 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $1.48 compared with $1.31 in 2024, up 9.0% and 13.0% respectively. Adjusted net earnings (1) for the third quarter of Fiscal 2025 totalled $331.8 million compared with $305.0 million for the corresponding quarter of 2024, and adjusted fully diluted net earnings per share (1) for third quarter of Fiscal 2025 were $1.52, versus $1.35 in 2024, up 8.8% and 12.6% respectively. The third quarters of 2025 and 2024 included an adjustment for the pre-tax amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition of $11.9 million, as well as the income taxes relating to this item. Net earnings for the fourth quarter of Fiscal 2025 were $217.0 million compared with $219.9 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $1.00 compared with $0.98 in 2024, down 1.3% and up 2.0% respectively. Adjusted net earnings (1) for the fourth quarter of Fiscal 2025 totalled $246.0 million compared with $226.5 million for the corresponding quarter of 2024, and adjusted fully diluted net earnings per share (1) for the fourth quarter of Fiscal 2025 were $1.13, versus $1.02 in 2024, up 8.6% and 10.8% respectively. The fourth quarters of 2025 and 2024 included an adjustment for the pre-tax amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition of $8.9 million, as well as the income taxes relating to this item. The fourth quarter of 2025 also included inventories write-down and other direct costs of $30.6 million, or $22.5 million net of the related taxes, related to the temporary shutdown of our frozen distribution centre in Toronto. 2025 2024 (Millions of dollars) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net earnings 259.5 220.0 323.0 217.0 228.5 187.1 296.2 219.9 Inventories write-down and other direct costs due to the freezer issue, net of taxes - - - 22.5 - - - - Loss on impairment of a loyalty program, net of taxes - - - - - 18.1 - - Gain on disposal of an investment in an associate, net of taxes - - - - - (5.4) - - Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, net of taxes 6.5 6.6 8.8 6.5 6.5 6.6 8.8 6.6 Favourable resolution of a tax position in respect of prior years (20.6) - - - - - - - Adjusted net earnings (1) 245.4 226.6 331.8 246.0 235.0 206.4 305.0 226.5 2025 2024 (Dollars) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fully diluted net earnings per share 1.16 0.99 1.48 1.00 0.99 0.83 1.31 0.98 Adjustments impact (0.06) 0.03 0.04 0.13 0.03 0.08 0.04 0.04 Adjusted fully diluted net earnings per share (1) 1.10 1.02 1.52 1.13 1.02 0.91 1.35 1.02 ‌CASH POSITION OPERATING ACTIVITIES Operating activities generated cash inflows of $1,724.9 million in Fiscal 2025 compared with $1,677.0 million in Fiscal 2024. The increase is mainly due to higher earnings in 2025, partly offset by unfavourable changes in non-cash working capital items compared to last year. INVESTING ACTIVITIES In Fiscal 2025, investing activities required cash outflows of $408.6 million compared with $456.4 million for Fiscal 2024. This difference stemmed mainly from lower investments in tangible and intangible assets and goodwill of $69.1 million in 2025. During Fiscal 2025, we and our retailers opened 14 stores, carried out major expansions and renovations of 17 stores, and 8 stores were closed, for a net increase of 293,500 square feet or 1.4% of our food retail network. FINANCING ACTIVITIES Financing activities required cash outflows of $1,278.4 million in Fiscal 2025 compared with $1,220.7 million in Fiscal 2024. This difference is mainly due to higher share repurchases of $311.8 million in 2025, partly offset by a favorable variation in net debt of $285.4 million in 2025 compared to 2024. ‌FINANCIAL POSITION We do not anticipate (2) any liquidity risk and consider our financial position at the end of Fiscal 2025 as very solid. We had an unused authorized revolving credit facility of $482.0 million. At the end of Fiscal 2025, the main elements of our debt were as follows: Interest Rate Maturity Rates fluctuate with changes in bankers' Notional (Millions of dollars) Revolving Credit Facility acceptance rates December 11, 2029 118.0 Series G Notes 3.39% fixed nominal rate December 6, 2027 450.0 Series L Notes 4.00% fixed nominal rate November 27, 2029 500.0 Series K Notes 4.66% fixed nominal rate February 7, 2033 300.0 Series B Notes 5.97% fixed nominal rate October 15, 2035 400.0 Series D Notes 5.03% fixed nominal rate December 1, 2044 300.0 Series H Notes 4.27% fixed nominal rate December 4, 2047 450.0 Series I Notes 3.41% fixed nominal rate February 28, 2050 400.0 On November 27, 2024, the Corporation issued through a private placement Series L unsecured senior notes in the aggregate principal amount of $500.0 million, bearing interest at a fixed nominal rate of 3.998%, maturing on November 27, 2029. In anticipation of this issuance, on November 22, 2024, the Corporation entered into a bond forward contract designated as cash flow hedge on a portion of a highly probable future debt issuance in the amount of $100.0 million that effectively locked-in a 5-year fixed underlying Government of Canada yield of 3.351%. The effective part of the loss on the hedging instrument was recognized in Other Comprehensive Income. Following the Series L notes issuance, the amounts accumulated in equity will be reclassified to net financial costs on a linear basis over the life of the debt. On December 2, 2024, the Corporation redeemed all of the Series J notes, bearing interest at a fixed nominal rate of 1.92%, in the amount of $300.0 million that matured on the same day. CAPITAL STOCK Common Shares issued (Thousands) 2025 2024 Balance - beginning of year 222,702 228,949 Share redemption (8,154) (6,680) Stock options exercised 499 433 Balance - end of year 215,047 222,702 Balance as at December 3, 2025 and December 4, 2024 213,745 222,115 Treasury shares (Thousands) 2025 2024 Balance - beginning of year 288 296 Acquisition 110 105 Release (99) (113) Balance - end of year 299 288 Balance as at December 3, 2025 and December 4, 2024 299 288 STOCK OPTIONS PLAN As at December 3, 2025 As at September 27, 2025 As at September 28, 2024 Stock options (Thousands) 1,938 1,969 2,179 Exercise prices (Dollars) 47.51 to 102.08 47.51 to 102.08 41.16 to 77.75 Weighted average exercise price (Dollars) 69.88 69.65 61.15 PERFORMANCE SHARE UNIT PLAN As at December 3, 2025 As at September 27, 2025 As at September 28, 2024 Performance share units (Thousands) 551 551 571 NORMAL COURSE ISSUER BID PROGRAM Under the normal course issuer bid program covering the period between November 27, 2024 and November 26, 2025, the Corporation repurchased 8,700,000 Common Shares at an average price of $97.51, for a total consideration of $848.3 million. The Corporation decided to renew the issuer bid program as an additional option for using excess funds. Thus, the Corporation will be able to repurchase, in the normal course of business, between November 27, 2025 and November 26, 2026, up to 10,000,000 of its Common Shares representing approximately 4.7% of its issued and outstanding shares on November 13, 2025. Repurchases will be made through the facilities of the Toronto Stock Exchange at market price, in accordance with its policies and regulations, or through the facilities of alternative Canadian trading systems as well as by other means as may be permitted by a securities regulatory authority, including by private agreements. The Corporation has entered into an Automatic Share Purchase Plan ("ASPP") agreement with National Bank Financial Inc., its designated dealer, to allow for the automatic repurchase of shares, such agreement came into effect upon commencement of the normal course issuer bid program covering the period from November 27, 2025 to November 26, 2026. During the effective period of the Corporation's ASPP, the Corporation's broker may purchase Common Shares at times when the Corporation would not be active in the market due to insider trading rules and its own internal trading blackout periods. Outside of the effective period of the ASPP, Common Shares will be purchased by the Corporation at its discretion in accordance with applicable law. As at December 3, 2025, the Corporation has repurchased 86,400 Common Shares at an average price of $98.18 for a total consideration of $8.5 million. DIVIDEND For the 31 th consecutive year, the Corporation paid quarterly dividends to its shareholders. The annual dividend increased by 10.5%, to $1.4450 per share compared with $1.3075 in 2024, for total dividends of $316.8 million in 2025 compared with $294.6 million in 2024. SHARE TRADING The value of METRO shares remained in the $81.01 to $109.20 range throughout Fiscal 2025 ($65.43 to $87.22 in 2024). A total of 124.3 million shares traded on the TSX during this fiscal year (113.0 million in 2024). The closing price on Friday, September 26, 2025 was $92.20, compared with $84.84 at the end of Fiscal 2024. Since fiscal year-end, the value of METRO shares has remained in the $90.73 to $101.30 range. The closing price on December 3, 2025 was $98.39. METRO shares have maintained sustained growth over the last 10 years. COMPARATIVE SHARE PERFORMANCE (10 YEARS)* CONTINGENCIES In the normal course of business, various proceedings and claims are instituted against the Corporation. The Corporation contests the validity of these claims and proceedings and at this stage, the Corporation does not believe (2) that these matters will have a material effect on the Corporation's financial position or on consolidated earnings. However, since any litigation involves uncertainty, it is not possible to predict the outcome of these claims or the amount of potential losses. No accruals or provisions for contingent losses have been recognized in the Corporation's annual consolidated financial statements. In May 2019, two (2) proposed class actions relating to opioids were filed in Ontario and in Quebec by opioid end users against a large group of defendants including, in Quebec, a subsidiary of the Corporation, Pro Doc Ltée ("Pro Doc"), and, in Ontario, Pro Doc and The Jean Coutu Group (PJC) Inc. ("Jean Coutu Group"). In December 2023, the Ontario Superior Court of Justice dismissed the Ontario class action against Pro Doc, Jean Coutu Group and the distributor defendants. As plaintiff did not appeal the decision, this decision is therefore final. In April 2024, the Quebec Superior Court authorized the Québec class action, the authorization process being merely a procedural step and the judgment in no way decides the case on the merits. For the sole purpose of avoiding the costs and inconvenience of this class action, Pro Doc and its insurers have agreed to settle the Québec class action out of court, without any admission and while continuing to deny any allegation of fault or liability. The settlement agreement is pending approval by the Quebec Superior Court. In August 2018, the Province of British Columbia filed a proposed class action against numerous manufacturers and distributors of opioids, including subsidiaries of the Corporation, Pro Doc and Jean Coutu Group. The Province of British Columbia seeks damages (unquantified) on behalf of all federal, provincial and territorial governments and agencies for expenses allegedly incurred in paying for opioid prescriptions and other healthcare costs that would be related to opioid addiction and abuse. In January 2025, the Court certified the class action against all defendants, the certification process being merely a procedural step and the judgment in no way decides the case on the merits. That decision is under appeal. In February 2020, a proposed class action relating to opioids was filed in British Columbia by opioid end users against a large group of defendants including subsidiaries of the Corporation, Pro Doc and Jean Coutu Group. In April 2021, a proposed class action relating to opioids was filed in Alberta by the City of Grande Prairie (Alberta) and the City of Brantford (Ontario). That proposed class action, amended in late November 2024, is made against multiple defendants, including the Corporation, Pro Doc and Jean Coutu Group. In September 2021, multiple defendants, including Pro Doc and Jean Coutu Group, were served with a proposed class action relating to opioids and filed by the Peter Ballantyne Cree Nation and the Lac La Ronge Indian Band, in Saskatchewan. The allegations in these proposed class actions are similar to the allegations contained in the proposed class action filed by the Province of British Columbia in 2018. They include allegations of breach of the Competition Act , of fraudulent misrepresentation and deceit, and negligence. The City of Grande Prairie, on its behalf and on behalf of all Canadian municipalities and local governments, seeks damages which are unquantified in relation to public safety, social service, and criminal justice costs allegedly incurred due to the opioid crisis. The Peter Ballantyne Cree Nation and the Lac La Ronge Indian Band are attempting a similar recourse, claiming unquantified damages from multiple defendants on their own behalf and on behalf of all Indigenous, First Nations, Inuit and Metis communities and governments in Canada. The Corporation believes (2) these proceedings are without merits and that, in certain cases, there is no jurisdiction. No provisions for contingent losses have been recognized in the Corporation's annual consolidated financial statements. In 2017, the Canadian Competition Bureau began an investigation into the supply and sale of commercial bread which involves certain Canadian suppliers and retailers, including the Corporation. Based on the information available to date, the Corporation does not believe that it or any of its employees have violated the Competition Act . Proposed class-action lawsuits have also been filed against the Corporation, suppliers and other retailers. On December 19, 2019, the Quebec Superior Court granted the application for authorization to institute one of these class actions, the authorization process being merely a procedural step and the judgment in no way decides the case on the merits. On December 31, 2021, the Ontario Superior Court of Justice partially certified another of these class actions. The Corporation is contesting all these actions at the certification stage and on the merits. No provisions for contingent losses have been recognized in the Corporation's annual consolidated financial statements. During the 2016 fiscal year, an application for authorization to institute a class action was served on Jean Coutu Group by Sopropharm, an association incorporated under the Professional Syndicates Act of which certain franchised drugstore owners of the Jean Coutu Group are members. The application seeks to have the class action authorized in the form of a declaratory action seeking amongst others (i) to set aside certain contractual provisions of the Jean Coutu Group's standard franchise agreements, including the clause providing for the payment of royalties on sales of medication by franchised establishments; (ii) to restore certain benefits; and (iii) to reduce certain contractual obligations. On November 1, 2018, the Quebec Superior Court granted the application for authorization to institute a class action, the authorization process being merely a procedural step and the judgment in no way decides the case on the merits. The Corporation contests this action on the merits. No provisions for contingent losses have been recognized in the Corporation's annual consolidated financial statements. ‌SOURCES OF FINANCING Our operating activities generated in 2025 cash flows in the amount of $1,724.9 million. These cash flows were used to finance our investing activities, including $510.6 million in fixed asset and intangible asset and goodwill acquisitions, to redeem shares for an amount of $790.0 million, to pay dividends of $316.8 million, to reimburse interest on debt of $126.5 million and to pay lease liabilities (principal and interest), net of payments and interest received from subleases totalling $223.4 million, as well as to carry out other investing and financing activities. At the end of Fiscal 2025, our financial position mainly consisted of cash and cash equivalents in the amount of $67.3 million, an unused authorized Revolving Credit Facility of $482.0 million maturing in 2029, Series G Notes in the amount of $450.0 million maturing in 2027, Series L Notes in the amount of $500.0 million maturing in 2029, Series K Notes in the amount of $300.0 million maturing in 2033, Series B Notes in the amount of $400.0 million maturing in 2035, Series D Notes in the amount of $300.0 million maturing in 2044, Series H Notes in the amount of $450.0 million maturing in 2047 and Series I Notes in the amount of $400.0 million maturing in 2050. We believe (2) that cash flows from next year's operating activities will be sufficient to finance the Corporation's planned investing activities. ‌CONTRACTUAL OBLIGATIONS Payment commitments by fiscal year (capital and interest) Service (Millions of dollars) Facility and loans Notes Lease liabilities contract commitments Total 2026 18.6 121.1 335.0 170.9 645.6 2027 4.8 121.1 304.4 150.4 580.7 2028 3.0 558.3 265.4 70.4 897.1 2029 2.1 105.8 222.6 9.1 339.6 2030 119.7 589.1 165.7 3.7 878.2 2031 and thereafter 41.0 2,811.7 616.9 2.5 3,472.1 189.2 4,307.1 1,910.0 407.0 6,813.3 ‌RELATED PARTY TRANSACTIONS During Fiscal 2025, we supplied pharmacies held by a member of the Board of Directors and by an officer of the corporation. These transactions were carried out in the normal course of business and recorded at exchange value. They are itemized in note 23 to the consolidated financial statements. ‌FOURTH QUARTER (Millions of dollars, except for net earnings per share) 2025 2024 Change (%) Sales 5,108.7 4,938.4 3.4 Operating income before depreciation and amortization, inventories write-down and impairments of assets 484.7 459.6 5.5 Net earnings 217.0 219.9 (1.3) Adjusted net earnings (1) 246.0 226.5 8.6 Fully diluted net earnings per share 1.00 0.98 2.0 Adjusted fully diluted net earnings per share (1) 1.13 1.02 10.8 Cash flows from: Operating activities 499.1 456.0 - Investing activities (183.2) (150.1) - Financing activities (324.2) (281.8) - OPERATING RESULTS SALES Sales in the fourth quarter of Fiscal 2025 ended on September 27, 2025 were $5,108.7 million, up 3.4% versus the fourth quarter of the prior year, driven by higher sales in our discount and pharmacy retail networks. Food same-store sales (1) were up 1.6% in the fourth quarter of Fiscal 2025 (2024 - 2.2%). Online food sales (1) were up 19.8% versus last year (2024 - 27.6%). Our food basket inflation was below the reported CPI of 3.4% for food purchased from stores. Pharmacy same-store sales (1) were up 4.8% (2024 - 5.7%), with a 5.5% increase in prescription drugs (1) and a 2.9% increase in front-store sales (1) , primarily driven by over-the-counter products, cosmetics, and health and beauty. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION, INVENTORIES WRITE-DOWN AND IMPAIRMENTS OF ASSETS This earnings measurement excludes financial costs, taxes, depreciation and amortization, inventories write-down and impairments of assets. Operating income before depreciation and amortization, inventories write-down and impairments of assets for the fourth quarter of Fiscal 2025 totalled $484.7 million, or 9.5% of sales, an increase of 5.5% versus the corresponding quarter of Fiscal 2024. The fourth quarter of 2025 included direct costs of $6.1 million related to the temporary shutdown of our frozen food distribution centre in Toronto. Gross margin (1) for the fourth quarter of Fiscal 2025 was 20.0% versus 19.7% for the corresponding quarter of 2024. The margin improvement in the quarter is partly attributable to productivity gains at our food distribution centres and shrink improvement in stores. Operating expenses as a percentage of sales for the fourth quarter of Fiscal 2025 was 10.5%, versus 10.4% for the corresponding quarter of 2024. Operating expenses as a percentage of sales for the fourth quarter of Fiscal 2025 were unfavourably impacted by $6.1 million of direct costs related to the temporary shutdown of our frozen food distribution centre in Toronto. Excluding these costs, operating expenses as a percentage of sales for the fourth quarter of Fiscal 2025 would have been similar to last year. DEPRECIATION AND AMORTIZATION Total depreciation and amortization expense for the fourth quarter of Fiscal 2025 was $139.8 million versus $135.8 million for the corresponding quarter of 2024. INVENTORIES WRITE-DOWN The Corporation recognized an expense of $24.5 million for the write-down to net realizable value of inventories during the fourth quarter of Fiscal 2025. This write-down relates to frozen product inventories that were deemed unsalvageable following a mechanical failure of the refrigeration system at the frozen food distribution centre in Toronto. The operations at the distribution centre were stopped on September 12, 2025 and had not resumed as of September 27, 2025. NET FINANCIAL COSTS Net financial costs for the fourth quarter of Fiscal 2025 were $34.4 million compared with $32.6 million in the corresponding quarter of 2024. The increase in financial costs is mainly due to higher interest expense on net debt. INCOME TAXES The income tax expense of $69.0 million for the fourth quarter of Fiscal 2025 represented an effective tax rate of 24.1% compared with an income tax expense of $71.3 million and an effective tax rate of 24.5% for the fourth quarter of Fiscal 2024. The decrease in the effective tax rate in 2025 is mainly attributable to a provincial tax holiday related to the commissioning of our new automated distribution centre for fresh and frozen products in Terrebonne. NET EARNINGS AND ADJUSTED NET EARNINGS (1) Net earnings for the fourth quarter of Fiscal 2025 were $217.0 million compared with $219.9 million for the corresponding quarter of 2024, while fully diluted net earnings per share were $1.00 compared with $0.98 in 2024, down 1.3% and up 2.0% respectively. Excluding the specific items shown in the table below, adjusted net earnings (1) for the fourth quarter of Fiscal 2025 totalled $246.0 million compared with $226.5 million for the corresponding quarter of 2024, and adjusted fully diluted net earnings per share (1) for the fourth quarter of Fiscal 2025 were $1.13, versus $1.02 in 2024, up 8.6% and 10.8% respectively. Net earnings and fully diluted net earnings per share (EPS) adjustments (1) 2025 2024 Change (%) Net earnings (Millions of dollars) Fully diluted EPS (Dollars) Net earnings (Millions of dollars) Fully diluted EPS (Dollars) Net earnings Fully diluted EPS Per financial statements 217.0 1.00 219.9 0.98 (1.3) 2.0 Inventories write-down and other direct costs due to the freezer issue, net of taxes of $8.1 22.5 - Amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition, net of taxes of $2.4 6.5 6.6 Adjusted measures (1) 246.0 1.13 226.5 1.02 8.6 10.8

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