Mr. Marc Giroux reports

METRO PROVIDES BUSINESS AND BARGAINING UPDATE ON ONGOING STRIKE BY UNIONIZED EMPLOYEES AT ITS PRODUCE DISTRIBUTION CENTRE IN LAVAL, TRANSPORTATION AND HEAD OFFICE

Metro Inc. has provided an update on the business impact of the continuing strike by its unionized employees at the produce distribution centre in Laval, transportation and head office, as well as on the status of bargaining.

Business update

Metro knows how important reliable access to fresh products is for its customers. Through the hard work of its team, it implemented its contingency plan as soon as the strike began on March 30, 2026, to maintain produce availability in stores and continue meeting customer needs. After a few weeks of ramp-up, the plan stabilized, and is enabling consistent and reliable store replenishment.

Bargaining update

Metro remains committed to reaching a negotiated agreement for the renewal of the collective agreement that recognizes the contribution of its employees while protecting the long-term competitiveness of its operations, the stability of quality jobs and its ability to continue serving customers in a highly competitive market.

That is why, after several weeks of negotiations with the union with the assistance of a conciliation officer appointed by the Minister of Labour, Metro presented a global settlement offer to the union on June 11, 2026. The offer included significant increases, particularly in the first 12 months of the collective agreement, in the context of wages and working conditions that are already very competitive for comparable roles in the market.

On June 18, 2026, employees rejected the offer following the union's recommendation and the union indicated it would present a counteroffer to Metro. The union presented its counteroffer today.

Metro reviewed the counteroffer and concluded that it does not provide a basis for a responsible and sustainable settlement, particularly given the significant gap between the parties on monetary issues.

"We are very disappointed that the union came back with an offer that in no way reflects the broader labour market or the competitive reality of our industry, especially after a 13-week strike. Our priorities are clear: serve our customers, support our operations and reach a negotiated agreement that is responsible and viable in the long term," said Marc Giroux, chief operating officer. "We invite the union to work constructively toward a reasonable settlement that will bring an end to this strike and allow operations to resume in a stable and predictable environment for all."

Financial update

The strike has disrupted supply of fresh produce to the company's 300 stores in Quebec, especially during the first weeks of the conflict. For the first 14 weeks of its 16-week third quarter that ends on July 4, food same-store sales were down 1.5 per cent compared with the corresponding weeks last year. Based on the information currently available, it estimates that the combination of lower food sales, lost margins and incremental costs related to the contingency plan will result in adjusted net earnings per share of approximately $1.22 to $1.27 for the third quarter, compared with $1.52 for the same quarter last year.

The impact is temporary in nature, and reflects the disruption and additional costs associated with the strike and contingency measures.

This estimate is preliminary, based on management's current assessment of the situation, and remains subject to change. Metro will provide a further update on the strike as soon as appropriate, but at the latest with the release of its third quarter results on Aug. 12, 2026.

In the meantime, the company continues to actively manage the situation, with a focus on meeting customers' needs through the continued deployment of its contingency plan. The company wants to thank its customers for their understanding and its team for its unwavering professionalism.

About Metro Inc.

With annual sales of more than $22-billion, Metro is a food and pharmacy leader in Quebec and Ontario, providing employment to more than 97,000 people. Its purpose is to nourish the health and well-being of communities. As a retailer, franchisor, distributor, manufacturer and provider of e-commerce services, the company operates or services a network of about 1,000 food stores under several banners, including Metro, Metro Plus, Super C, Food Basics, Adonis and Premiere Moisson, and about 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

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