INTERIM REPORT

12-week period ended December 23, 2023

1st Quarter 2024

HIGHLIGHTS

2024 FIRST QUARTER

n Sales of $4,974.2 million, up 6.5%
n Food same-store sales(1) up 6.1%, and up 3.4% when adjusting for the Christmas
week shift(3)
n Pharmacy same-store sales(1) up 3.9%
n Net earnings of $228.5 million, down 1.1%, and adjusted net earnings(1) of
$235.0 million, down 1.1%
n Fully diluted net earnings per share of $0.99, up 2.1%, and adjusted fully diluted net
earnings per share(1) of $1.02, up 2.0%
n Declared dividend of $0.3350 per share, up 10.7% versus last year
REPORT TO SHAREHOLDERS

Dear Shareholders,

I am pleased to present our interim report for the first quarter of Fiscal 2024 ended December 23, 2023.

Sales in the first quarter of Fiscal 2024 ended on December 23, 2023 were $4,974.2 million, up 6.5% versus the first
quarter of the prior year which ended on December 17, 2022. Food same-store sales(1) were up 6.1% (7.5% in the
first quarter of 2023), and up 3.4% when adjusting for the Christmas shift(3). Online food sales(1) were up 105.0%
versus last year (40.0% in the first quarter of 2023), mostly driven by higher partnership sales. Our food basket
inflation was about 4.0%, lower than reported CPI and down from 5.5% in the previous quarter. Pharmacy same-store
sales(1) were up 3.9% (7.7% in the first quarter of 2023), with a 6.6% increase in prescription drugs(1) and a 1.2%
decrease in front-store sales(1), as we cycled very high sales last year due to an exceptionally strong cough and cold
season.

First quarter net earnings were $228.5 million in Fiscal 2024 compared with $231.1 million in 2023 and fully diluted
net earnings per share were $0.99 compared with $0.97 in 2023, down 1.1% and up 2.1% respectively. Adjusted net
earnings(1) for the first quarter of Fiscal 2024 totalled $235.0 million compared with $237.6 million for the
corresponding quarter of 2023 and adjusted fully diluted net earnings per share(1) were $1.02 versus $1.00, down
1.1% and up 2.0% respectively. The first quarters of 2024 and 2023 included an adjustment for the after-tax
amortization of intangible assets acquired in connection with the Jean Coutu Group acquisition.

On January 29, 2024, the Board of Directors declared a quarterly dividend of $0.3350 per share, an increase of
10.7% versus last year's quarterly dividend.

We recorded solid results in the first quarter as our teams continued to deliver good value to customers in all our food
and pharmacy banners. Our discount food stores continue to grow their sales at a faster pace, private label
penetration reached new heights and our MOI loyalty program now has 2.5 million members, double the size of
Metro&Moi. The opening our new 600,000 square feet automated fresh and frozen distribution center in Terrebonne in
October was a success and the ramp-up of operations is on track with our plan and the guidance given in November.
We are confident that our sustained investments in the modernization of our supply chain and our retail networks will
continue to create long term value for our shareholders(2).

Eric La Flèche
President and Chief Executive Officer

January 30, 2024

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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MANAGEMENT'S DISCUSSION AND ANALYSIS
The following Management's Discussion and Analysis (MD&A) sets out the financial position and consolidated results
of METRO INC. on December 23, 2023 for the 12-week period then ended. It should be read in conjunction with the
unaudited interim condensed consolidated financial statements and accompanying notes in this interim report.

The unaudited interim condensed consolidated financial statements for the 12-week period ended
December 23, 2023 have been prepared by management in accordance with IAS 34 Interim Financial Reporting.
They should be read in conjunction with the audited annual consolidated financial statements and accompanying
notes and the MD&A presented in the Corporation's 2023 Annual Report. Unless otherwise stated, the interim report
is based on information as at January 19, 2024.

Additional information, including the Certification of Interim Filings for the quarter ended December 23, 2023 signed
by the President and Chief Executive Officer and the Executive Vice President, Chief Financial Officer and Treasurer,
will also be available on the SEDAR website at: www.sedarplus.ca.

OPERATING RESULTS

SALES
Sales in the first quarter of Fiscal 2024 ended on December 23, 2023 were $4,974.2 million, up 6.5% versus the first
quarter of the prior year which ended on December 17, 2022. Food same-store sales(1) were up 6.1% (7.5% in the
first quarter of 2023), and up 3.4% when adjusting for the Christmas shift(3). Online food sales(1) were up 105.0%
versus last year (40.0% in the first quarter of 2023), mostly driven by higher partnership sales. Our food basket
inflation was about 4.0%, lower than reported CPI and down from 5.5% in the previous quarter. Pharmacy same-store
sales(1) were up 3.9% (7.7% in the first quarter of 2023), with a 6.6% increase in prescription drugs(1) and a 1.2%
decrease in front-store sales(1), as we cycled very high sales last year due to an exceptionally strong cough and cold
season.

OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

This earnings measurement excludes financial costs, taxes, depreciation and amortization.

Operating income before depreciation and amortization for the first quarter of Fiscal 2024 totalled $468.1 million, or
9.4% of sales, an increase of 1.3% versus the corresponding quarter of Fiscal 2023. Last year included gains on
disposal of assets of $4.4 million versus $1.2 million this year.

Gross margin(1) for the first quarter of Fiscal 2024 was 19.6%, which is the same percentage as the corresponding
quarter of 2023.

Operating expenses as a percentage of sales for the first quarter of Fiscal 2024 were 10.2% versus 9.8% in the
corresponding quarter of 2023. The increase in operating expenses is mainly due to the commissioning of our new
automated distribution centre for fresh and frozen products in Terrebonne.

DEPRECIATION AND AMORTIZATION

Total depreciation and amortization expense for the first quarter of Fiscal 2024 was $131.1 million versus
$120.1 million for the corresponding quarter of 2023. The increase in depreciation and amortization expense is mainly
due to the commissioning of our new automated distribution centre for fresh and frozen products in Terrebonne.

NET FINANCIAL COSTS

Net financial costs for the first quarter of Fiscal 2024 were $32.4 million compared with $27.1 million for the
corresponding quarter of 2023. The increase is mainly due to an increase in debt, higher interest rates and lower
capitalized interest related to our distribution center automation projects.

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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INCOME TAXES
The income tax expense of $76.1 million for the first quarter of Fiscal 2024 represented an effective tax rate of 25.0%
which reflected a favorable tax adjustment in respect of prior years, compared with an income tax expense of
$83.7 million and an effective tax rate of 26.6% for the first quarter of Fiscal 2023.

NET EARNINGS AND ADJUSTED NET EARNINGS(1)

Net earnings for the first quarter of Fiscal 2024 were $228.5 million compared with $231.1 million for the
corresponding quarter of 2023, while fully diluted net earnings per share were $0.99 compared with $0.97 in 2023,
down 1.1% and up 2.1% respectively. Excluding the specific item shown in the table below, adjusted net earnings(1)
for the first quarter of Fiscal 2024 totalled $235.0 million compared with $237.6 million for the corresponding quarter
of 2023 and adjusted fully diluted net earnings per share(1) were $1.02 versus $1.00, down 1.1% and up 2.0%
respectively.

Net earnings and fully diluted net earnings per share (EPS) adjustments(1)

12 weeks / Fiscal Year

2024 2023 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 228.5 0.99 231.1 0.97 (1.1) 2.1
Amortization of intangible assets acquired in
connection with the Jean Coutu Group
acquisition, net of taxes of $2.4 6.5 6.5
Adjusted measures(1) 235.0 1.02 237.6 1.00 (1.1) 2.0

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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QUARTERLY HIGHLIGHTS

(Millions of dollars, unless otherwise indicated) 2024 2023 2022 Change (%)
Sales
Q1(3) 4,974.2 4,670.9 — 6.5
(4)
Q4 — 5,071.7 4,432.6 14.4
Q3(5) — 6,427.5 5,865.5 9.6
(3)
Q2 — 4,554.5 4,274.2 6.6
Net earnings
Q1(3) 228.5 231.1 — (1.1)
(4)
Q4 — 222.2 168.7 31.7
Q3(5) — 346.7 275.0 26.1
(3)
Q2 — 218.8 198.1 10.4
Adjusted net earnings(1)
Q1(3) 235.0 237.6 — (1.1)
Q4(4) — 228.8 219.4 4.3
(5)
Q3 — 314.8 283.8 10.9
Q2(3) — 225.4 204.7 10.1
Fully diluted net earnings per share (Dollars)
Q1(3) 0.99 0.97 — 2.1
Q4(4) — 0.96 0.70 37.1
Q3(5) — 1.49 1.14 30.7
Q2(3) — 0.93 0.82 13.4
(1)
Adjusted fully diluted net earnings per share (Dollars)

Q1(3) 1.02 1.00 — 2.0

(4)
Q4 — 0.99 0.92 7.6
(5)
Q3 — 1.35 1.18 14.4
Q2(3) — 0.96 0.84 14.3
(3)
12 weeks
(4)
13 weeks in 2023, 12 weeks in 2022
(5)
16 weeks

Sales in the first quarter of Fiscal 2024 ended on December 23, 2023 were $4,974.2 million, up 6.5% versus the first
quarter of the prior year which ended on December 17, 2022. Food same-store sales(1) were up 6.1% (7.5% in the
first quarter of 2023), and up 3.4% when adjusting for the Christmas shift(3). Online food sales(1) were up 105.0%
versus last year (40.0% in the first quarter of 2023), mostly driven by higher partnership sales. Our food basket
inflation was about 4.0%, lower than reported CPI and down from 5.5% in the previous quarter. Pharmacy same-store
sales(1) were up 3.9% (7.7% in the first quarter of 2023), with a 6.6% increase in prescription drugs(1) and a 1.2%
decrease in front-store sales(1), as we cycled very high sales last year due to an exceptionally strong cough and cold
season.

Sales in the fourth quarter of Fiscal 2023 remained strong, reaching $5,071.7 million, and up 14.4% versus the fourth
quarter of the prior year. Excluding the 13th week in 2023, fourth quarter sales were up 5.4%. Food same-store
sales(1) were up 6.8% (8.0% in the fourth quarter of 2022) driven mostly by our discount banners. Online food sales(1)
were up 116.0% versus last year (33.0% in the fourth quarter of 2022), mostly driven by higher partnership sales. Our
food basket inflation was about 5.5%, lower than reported CPI and down from 8.0% in the third quarter. Pharmacy
same-store sales(1) were up 5.5% (7.4% in the fourth quarter of 2022), with a 6.7% increase in prescription drugs(1)
and a 3.1% increase in front-store sales(1), with increases across most categories except over-the-counter products
as we cycled very high sales last year due to a strong cough and cold season.

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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Sales in the third quarter of Fiscal 2023 remained strong, reaching $6,427.5 million, and up 9.6%. Food same-store
sales(1) were up 9.4% (1.1% in the third quarter of 2022) driven by the continuing shift to discount and high inflation.
Online food sales(1) were up 99.0% versus last year (flat in the third quarter of 2022), mostly driven by higher
partnership sales. Our food basket inflation was about 8.0%, lower than reported food CPI and lower than the
previous quarter. Pharmacy same-store sales(1) were up 5.9% (7.2% in the third quarter of 2022), with a 6.7%
increase in prescription drugs(1) and a 4.1% increase in front-store sales(1), with increases across most categories
except over-the-counter products.

Sales in the second quarter of Fiscal 2023 remained strong, reaching $4,554.5 million, up 6.6% compared to elevated
sales last year due to COVID-related restrictions in both provinces. Food same-store sales(1) were up 5.8% versus the
same quarter last year mainly due to higher inflation this quarter (0.8% in the second quarter of 2022). Online food
sales(1) were up 41.0% versus last year (6.0% in the second quarter of 2022), mostly driven by new partnership sales.
Our food basket inflation was 9.0%, down slightly from the previous quarter. Pharmacy same-store sales(1) were
up 7.3% (9.4% in the second quarter of 2022), with a 5.0% increase in prescription drugs(1) and a 12.2% 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 2024 were $228.5 million compared with $231.1 million for the
corresponding quarter of 2023, while fully diluted net earnings per share were $0.99 compared with $0.97 in 2023,
down 1.1% and up 2.1% respectively. Adjusted net earnings(1) for the first quarter of Fiscal 2024 totalled
$235.0 million compared with $237.6 million for the corresponding quarter of 2023 and adjusted fully diluted net
earnings per share(1) were $1.02 versus $1.00, down 1.1% and up 2.0% respectively. The first quarters of 2024 and
2023 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.

Net earnings for the fourth quarter of Fiscal 2023 were $222.2 million compared with $168.7 million for the fourth
quarter of 2022, while fully diluted net earnings per share were $0.96 compared with $0.70 in 2022, up 31.7% and
37.1%, respectively. Adjusted net earnings(1) for the fourth quarter of Fiscal 2023 totalled $228.8 million compared
with $219.4 million for the corresponding quarter of 2022 and adjusted fully diluted net earnings per share(1)
amounted to $0.99 versus $0.92, up 4.3% and 7.6% respectively. The fourth quarters of 2023 and 2022 included
adjustments for the pre-tax amortization of intangible assets acquired in connection with the Jean Coutu Group
acquisition of $9.0 million, the impairment of a loyalty program of $60.0 million in the fourth quarter of 2022 as well as
the income taxes relating to these items. The labour conflict at 27 Metro stores in the Greater Toronto Area had an
unfavorable impact of approximately $27.0 million after-tax or $0.12 per share. The 13th week had a favorable impact
of $27.0 million net of tax or $0.12 per share.

Net earnings for the third quarter of Fiscal 2023 were $346.7 million compared with $275.0 million for the third quarter
of 2022, while fully diluted net earnings per share were $1.49 compared with $1.14 in 2022, up 26.1% and 30.7%,
respectively. Adjusted net earnings(1) for the third quarter of Fiscal 2023 totalled $314.8 million compared with $283.8
million for the corresponding quarter of 2022 and adjusted fully diluted net earnings per share(1) amounted to $1.35
versus $1.18, up 10.9% and 14.4% respectively. The third quarters of 2023 and 2022 included adjustments 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 these items and the third quarter of 2023 also included an
adjustment for a favorable $40.7 million income tax entry in respect of prior years.

Net earnings for the second quarter of Fiscal 2023 were $218.8 million compared with $198.1 million for the second
quarter of 2022, while fully diluted net earnings per share were $0.93 compared with $0.82 in 2022, up 10.4% and
13.4%, respectively. Excluding from the second quarters of Fiscal 2023 and 2022, the amortization of intangible
assets acquired in connection with the Jean Coutu Group acquisition of $8.9 million as well as income taxes relating
to these items, adjusted net earnings(1) for the second quarter of Fiscal 2023 totalled $225.4 million compared with
$204.7 million for the corresponding quarter of 2022 and adjusted fully diluted net earnings per share(1) amounted to
$0.96 compared with $0.84, up 10.1% and 14.3% respectively.

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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 2024 2023 2022
(Millions of dollars) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
Net earnings 228.5 222.2 346.7 218.8 231.1 168.7 275.0 198.1
Impairment of a loyalty program, after taxes — — — — — 44.1 — —
Amortization of intangible assets acquired in
connection with the Jean Coutu Group
acquisition, after taxes 6.5 6.6 8.8 6.6 6.5 6.6 8.8 6.6
Favorable tax adjustment in respect of prior
years — — (40.7) — — — — —
Adjusted net earnings(1) 235.0 228.8 314.8 225.4 237.6 219.4 283.8 204.7

2024 2023 2022

(Dollars) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
Fully diluted net earnings per share 0.99 0.96 1.49 0.93 0.97 0.70 1.14 0.82
Adjustments impact 0.03 0.03 (0.14) 0.03 0.03 0.22 0.04 0.02
Adjusted fully diluted net earnings per share(1) 1.02 0.99 1.35 0.96 1.00 0.92 1.18 0.84

CASH POSITION

OPERATING ACTIVITIES
In the first quarter of Fiscal 2024, operating activities generated cash inflows of $172.3 million compared with
$210.2 million in the corresponding quarter of 2023. The decline is mainly due to changes in non-cash working capital
items.

INVESTING ACTIVITIES
Investing activities required cash outflows of $87.2 million for the first quarter of Fiscal 2024 compared with
$94.1 million for the corresponding quarter of 2023. This difference stemmed mainly from lower investments in
tangible and intangible assets of $12.0 million in 2024.

During the first quarter of 2024, we and our retailers opened 3 stores, and carried out major expansions and
renovations of 4 stores for a net increase of 88,400 square feet or 0.4% of our food retail network.

FINANCING ACTIVITIES
In the first quarter of 2024, financing activities required cash outflows of $114.1 million compared with $128.0 million
in the corresponding quarter of 2023. This difference is mainly due to an increase in debt, partly offset by higher share
repurchases in 2024.

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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FINANCIAL POSITION
We do not anticipate(2) any liquidity risk and consider our financial position at the end of the first quarter of 2024 as
very solid. We had an unused authorized revolving credit facility of $364.3 million.

At the end of the first quarter of 2024, the main elements of our debt were as follows:

Notional
Interest Rate Maturity (Millions of dollars)
Rates fluctuate with changes in bankers'
Revolving Credit Facility acceptance rates October 27, 2028 235.7
Series J Notes 1.92% fixed nominal rate December 2, 2024 300.0
Series G Notes 3.39% fixed nominal rate December 6, 2027 450.0
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

As at December 23, 2023, the revolving credit facility included loans of $125.0 million (US $93.5 million) (nil as at
September 30, 2023) and the Corporation entered into cross currency interest rate swaps to hedge against the effect
of interest rate fluctuations on the USD borrowings. As at December 17, 2022, the revolving credit facility included
loans of $100.0 million (US $74.0 million) and the Corporation entered into cross currency interest rate swaps to
hedge against the effect of interest rate fluctuations on the USD borrowings. During the period ended March 11, 2023
the Corporation repaid all our revolving credit facility drawn in US currency and the cross-currency interest rate swaps
entered into during the period ended December 17, 2022 came to maturity.

On February 6, 2023, the Corporation issued through a private placement Series K unsecured senior notes in the
aggregate principal amount of $300.0 million, bearing interest at a fixed nominal rate of 4.66%, maturing on
February 7, 2033. In anticipation of this issuance, on November 14, 2022, the Corporation entered into a bond
forward contract designated as cash flow hedge on a component of a highly probable future debt issuance in the
amount of $250.0 million that effectively locked-in a 10-year fixed interest rate of 2.996%. The effective part of the
loss on the hedging instrument was recognized in Other Comprehensive Income. Following the Series K Notes
issuance, the amounts accumulated in equity were reclassified to net financial costs on a linear basis over the life of
the debt.

During Fiscal 2022, the Corporation entered into a $300.0 million interest rate swap effectively locking in a floating
rate of interest of 11 basis points (0.11%) over the 3-month bankers' acceptance rate (CDOR) over the life of the
Series J Notes. As at December 23, 2023, the balance of the Series J unsecured senior notes was $292.7 million
($288.9 million as at September 30, 2023), reflecting an increase in fair value adjustments relating to interest rate
swaps designated as fair value hedges of $3.8 million in 2024 (increase of $3.8 million in 2023).

CAPITAL STOCK, STOCK OPTIONS AND PERFORMANCE SHARE UNITS

As at As at
December 23, 2023 September 30, 2023
Number of Common Shares outstanding (Thousands) 227,031 228,653
Stock options:
Number outstanding (Thousands) 2,537 2,226
Exercise prices (Dollars) 40.23 to 77.75 40.23 to 77.75
Weighted average exercise price (Dollars) 58.83 56.42
Performance share units:
Number outstanding (Thousands) 569 572

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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NORMAL COURSE ISSUER BID PROGRAM
Under the current normal course issuer bid program, the Corporation may repurchase up to 7,000,000 of its Common
Shares between November 25, 2023 and November 24, 2024. Between November 25, 2023 and January 19, 2024,
the Corporation has repurchased 1,675,000 Common Shares at an average price of $67.89, for a total consideration
of $113.7 million.

DIVIDENDS
On January 29, 2024, the Board of Directors declared a quarterly dividend of $0.3350 per share, an increase of
10.7% versus last year's quarterly dividend.

SHARE TRADING
The value of METRO shares remained in the $65.43 to $76.15 range over first quarter of Fiscal 2024. During this
period, a total of 30.5 million shares were traded on the Toronto Stock Exchange. The closing price on
January 19, 2024 was $69.76 compared with $70.54 at the end of Fiscal 2023.

FORWARD-LOOKING INFORMATION
We have used, throughout this report, different statements that could, within the context of regulations issued by the
Canadian Securities Administrators, be construed as being forward-looking information. In general, any statement
contained herein that does not constitute a historical fact may be deemed a forward-looking statement. Expressions
such as "anticipate", "continue", "expect" and other similar expressions are generally indicative of forward-looking
statements. The forward-looking statements contained herein are based upon certain assumptions regarding the
Canadian food and pharmaceutical industries, the general economy, our annual budget, as well as our 2024 action
plan.

These forward-looking statements do not provide any guarantees as to the future performance of the Corporation and
are subject to potential risks, known and unknown, as well as uncertainties that could cause the outcome to differ
significantly. Risk factors that could cause actual results or events to differ materially from our expectations as
expressed in, or implied by, our forward-looking statements are described and discussed under the "Risk
Management" section in our Annual Report 2023.

We believe these statements to be reasonable and pertinent as at the date of publication of this report and represent
our expectations. The Corporation does not intend to update any forward-looking statement contained herein, except
as required by applicable law.

NON-GAAP AND OTHER FINANCIAL MEASUREMENTS

In addition to the International Financial Reporting Standards (IFRS) measurements provided, we have included
certain non-GAAP and other financial measurements. These measurements are presented for information purposes
only. They do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar
measurements presented by other public companies.

National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure sets out specific disclosure
requirements for non-GAAP financial measures, non-GAAP ratios, and other financial measures, which are capital
management measures, supplementary financial measures, and total of segments measures, as defined in the
Instrument (together the “specified financial measures”).

The specified financial measures we disclose in our documents made available to the public are presented by
measurement categories below.

NON-GAAP FINANCIAL MEASURES

Adjusted net earnings is a non-GAAP financial measurement that with respect to its composition is adjusted to
exclude an amount that is included in, or include an amount that is excluded from, the composition of the most
directly comparable financial measure disclosed in our consolidated financial statements.

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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For measurements depicting financial performance, we believe that presenting earnings adjusted for these items,
which are not necessarily reflective of the Corporation's performance, leaves readers of financial statements better
informed thus enabling them to better perform trend analysis, evaluate the Corporation's financial performance and
assess its future outlook. Adjusting for these items does not imply that they are non-recurring.

NON-GAAP RATIOS
Adjusted fully diluted net earnings per share is a non-GAAP ratio by where a non-GAAP financial measure is used
as one or more of its components.

We believe that presenting this ratio, in which a non-GAAP financial measurement is used as one or more of its
components, leaves readers of financial statements better informed as to the current period and corresponding prior
year's period's performance, thus enabling them to better perform trend analysis, evaluate the Corporation's financial
performance and assess its future outlook. Adjusting for these items does not imply that they are non-recurring.

SUPPLEMENTARY FINANCIAL MEASURES

The supplementary financial measures listed below are, or are intended to be, disclosed on a periodic basis to depict
the historical or expected future financial performance, financial position or cash flow of the Corporation.

Food same-store sales and pharmacy same-store sales (including total, front-store and prescription drugs)
are defined as comparable retail sales of stores with more than 52 consecutive weeks of operations, including
relocated, expanded and renovated locations.

Online food sales are the sum of sales made from all our online channels.

Gross margin ratio is calculated by dividing gross profit by sales.

OUTLOOK(2)
With the launch of our new state-of-the-art automated distribution centre in Terrebonne, and the launch of the final
phase of our automated fresh produce plant in Toronto next spring, we are facing significant headwinds in Fiscal 2024
as we incur some temporary duplication of costs and learning curve inefficiencies, as well as higher depreciation and
lower capitalized interest. While these investments position us well for continued long-term profitable growth, we will
not fully absorb these additional expenses in the current fiscal year and are forecasting operating income before
depreciation and amortization to grow by less than 2% and adjusted net earnings per share to be flat to down $0.10 in
Fiscal 2024 versus the level reported in Fiscal 2023. We expect to resume our profit growth post Fiscal 2024 and are
maintaining our publicly disclosed annual growth target of between 8% and 10% for net earnings per share over the
medium and long term.

Montréal, January 30, 2024

(1)
See table in section "Operating Results" and section on "Non-GAAP and Other Financial Measurements"
(2)
See section on "Forward-looking Information"
(3)
This measure compares same-store-sales(1) for the 12-week period ending December 23, 2023 with that ending December 22, 2022.

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Interim Condensed Consolidated Financial Statements
(Unaudited)

METRO INC.
December 23, 2023

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Table of contents

Page

Consolidated statements of net income ................................................................................................................... 13

Consolidated statements of comprehensive income.............................................................................................. 14

Consolidated statements of financial position ......................................................................................................... 15

Consolidated statements of changes in equity........................................................................................................ 16

Consolidated statements of cash flows .................................................................................................................... 17

Notes to interim condensed consolidated financial statements............................................................................ 18

1- Statement presentation ........................................................................................................................................ 18

2- Income taxes .......................................................................................................................................................... 18

3- Net earnings per share ......................................................................................................................................... 18

4- Debt ......................................................................................................................................................................... 19

5- Capital stock........................................................................................................................................................... 19

6- Financial instruments ............................................................................................................................................ 21

7- Changes in defined benefit plans ....................................................................................................................... 21

8- Comparative figures .............................................................................................................................................. 22

9- Approval of financial statements ......................................................................................................................... 22

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Consolidated statements of net income
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, except for net earnings per share)

12 weeks
Fiscal Year
2024 2023

Sales 4,974.2 4,670.9

Cost of sales (4,000.9) (3,755.1)
Gross profit 973.3 915.8
Operating expenses (506.4) (458.2)
Gains on disposal of assets 1.2 4.4
Operating income before depreciation and amortization 468.1 462.0
Depreciation and amortization (131.1) (120.1)
Net financial costs (32.4) (27.1)
Earnings before income taxes 304.6 314.8
Income taxes (note 2) (76.1) (83.7)
Net earnings 228.5 231.1

Attributable to:
Equity holders of the parent 227.0 229.8
Non-controlling interest 1.5 1.3
228.5 231.1

Net earnings per share (Dollars) (note 3)

Basic 0.99 0.97
Fully diluted 0.99 0.97

See accompanying notes

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Consolidated statements of comprehensive income
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars)

12 weeks
Fiscal Year
2024 2023

Net earnings 228.5 231.1

Other comprehensive income
Items that will not be reclassified to net earnings
Changes in defined benefit plans
Actuarial gains (losses) (note 7) (24.3) 57.0
Asset ceiling effect 1.3 (24.3)
Corresponding income taxes 6.1 (8.7)
(16.9) 24.0
Items that will be reclassified later to net earnings
Change in fair value of derivatives designated as cash flow hedges — (5.6)
Corresponding income taxes — 1.5
— (4.1)
(16.9) 19.9
Comprehensive income 211.6 251.0

Attributable to:
Equity holders of the parent 210.1 249.7
Non-controlling interest 1.5 1.3
211.6 251.0

See accompanying notes

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Consolidated statements of financial position
(Unaudited) (Millions of dollars)

As at As at
December 23, 2023 September 30, 2023
ASSETS
Current assets
Cash and cash equivalents 0.5 29.5
Accounts receivable 840.1 728.3
Accounts receivable on subleases 95.4 96.1
Inventories 1,628.2 1,451.0
Prepaid expenses 66.2 65.9
Current taxes 23.2 32.8
2,653.6 2,403.6
Non-current assets
Fixed assets 3,795.1 3,768.3
Right-of-use assets 937.5 942.8
Intangible assets 2,725.7 2,733.0
Goodwill 3,312.9 3,307.4
Deferred taxes 37.9 37.9
Defined benefit assets 139.9 160.5
Accounts receivable on subleases 412.9 426.5
Other assets (note 8) 83.1 85.3
14,098.6 13,865.3
LIABILITIES AND EQUITY
Current liabilities
Accounts payable (note 8) 1,625.9 1,619.4
Deferred revenues 58.7 36.8
Current taxes 12.3 6.9
Current portion of debt (notes 4 and 8) 318.4 19.3
Current portion of lease liabilities 274.4 278.4
2,289.7 1,960.8
Non-current liabilities
Debt (note 4) 2,548.2 2,646.3
Lease liabilities 1,358.3 1,380.3
Defined benefit liabilities 30.7 29.4
Deferred taxes 999.4 1,001.6
Other liabilities (note 8) 24.8 30.6
7,251.1 7,049.0
Equity
Attributable to equity holders of the parent 6,831.2 6,801.2
Attributable to non-controlling interest 16.3 15.1
6,847.5 6,816.3
14,098.6 13,865.3

See accompanying notes

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Consolidated statements of changes in equity
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars)

Attributable to the equity holders of the parent

Accumulated
Capital Treasury other Non-
stock shares Contributed Retained comprehensive controlling Total
(note 5) (note 5) surplus earnings income Total interest equity
Balance as at September 30, 2023 1,601.1 (17.9) 23.6 5,195.6 (1.2) 6,801.2 15.1 6,816.3
Net earnings — — — 227.0 — 227.0 1.5 228.5
Other comprehensive income — — — (16.9) — (16.9) — (16.9)
Comprehensive income — — — 210.1 — 210.1 1.5 211.6
Stock options exercised 3.8 — (0.5) — — 3.3 — 3.3
Shares redeemed (note 5) (11.9) — — — — (11.9) — (11.9)
Share redemption premium (note 5) — — — (104.6) — (104.6) — (104.6)
Share-based compensation cost — — 2.2 — — 2.2 — 2.2
Dividends — — — (69.1) — (69.1) (0.3) (69.4)
(8.1) — 1.7 (173.7) — (180.1) (0.3) (180.4)
Balance as at December 23, 2023 1,593.0 (17.9) 25.3 5,232.0 (1.2) 6,831.2 16.3 6,847.5

Attributable to the equity holders of the parent

Accumulated
other Non-
Capital Treasury Contributed Retained comprehensive controlling Total
stock shares surplus earnings income Total interest equity
Balance as at September 24, 2022 1,649.3 (16.2) 23.3 4,947.2 0.9 6,604.5 13.9 6,618.4
Net earnings — — — 229.8 — 229.8 1.3 231.1
Other comprehensive income — — — 24.0 (4.1) 19.9 — 19.9
Comprehensive income — — — 253.8 (4.1) 249.7 1.3 251.0
Stock options exercised 4.6 — (0.5) — — 4.1 — 4.1
Shares redeemed (note 5) (10.8) — — — — (10.8) — (10.8)
Share redemption premium (note 5) — — — (97.9) — (97.9) — (97.9)
Share-based compensation cost — — 2.6 — — 2.6 — 2.6
Dividends — — — (64.8) — (64.8) (0.2) (65.0)
Buyout of minority interests — — — — — — (0.2) (0.2)
(6.2) — 2.1 (162.7) — (166.8) (0.4) (167.2)
Balance as at December 17, 2022 1,643.1 (16.2) 25.4 5,038.3 (3.2) 6,687.4 14.8 6,702.2

See accompanying notes

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Consolidated statements of cash flows
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars)

12 weeks
Fiscal Year
2024 2023
Operating activities
Earnings before income taxes 304.6 314.8
Non-cash items
Depreciation and amortization 131.1 120.1
Gains on disposal of assets (1.2) (4.4)
Share-based compensation cost 2.9 2.6
Difference between amounts paid for employee benefits and current period cost 0.3 6.1
Net financial costs 32.4 27.1
470.1 466.3
Net change in non-cash working capital items (240.6) (179.3)
Income taxes paid (57.2) (76.8)
172.3 210.2
Investing activities
Buyout of minority interests — (0.2)
Net change in other assets (note 8) 2.1 8.4
Additions to fixed assets (note 8) (97.1) (107.9)
Disposal of fixed assets (note 8) 0.3 0.1
Additions to intangible assets (20.2) (21.4)
Payments received from subleases 24.0 23.4
Interest received from subleases 3.7 3.5
(87.2) (94.1)
Financing activities
Shares issued 3.3 4.1
Shares redeemed (116.5) (108.7)
Increase in debt (notes 4 and 8) 209.2 163.2
Repayment of debt (notes 4 and 8) (13.7) (0.2)
Interest paid on debt (46.5) (43.5)
Payment of lease liabilities (principal) (68.6) (68.0)
Payment of lease liabilities (interest) (12.1) (11.1)
Net change in other liabilities (note 8) (0.1) 1.0
Dividends (69.1) (64.8)
(114.1) (128.0)
Net change in cash and cash equivalents (29.0) (11.9)
Cash and cash equivalents — beginning of period 29.5 13.4
Cash and cash equivalents — end of period 0.5 1.5

see accompanying notes

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Notes to interim condensed consolidated financial statements
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, unless otherwise indicated)

1. STATEMENT PRESENTATION
METRO INC. (the Corporation), is incorporated under the laws of Québec. The Corporation is one of Canada's
leading food and pharmacy retailers and distributors. It operates a network of supermarkets, discount stores and
drugstores. Its head office is located at 11011 Maurice-Duplessis Blvd., Montréal, Québec, Canada, H1C 1V6. Its
business segments, food operations and pharmaceutical operations, are combined into a single reportable operating
segment due to the similar nature of their operations.

The unaudited interim condensed consolidated financial statements for the 12-week period ended
December 23, 2023 have been prepared by management in accordance with IAS 34 Interim Financial Reporting and
using the same accounting policies and methods of computation as those used in preparing the audited annual
consolidated financial statements for the year ended September 30, 2023. They should be read in conjunction with
the audited annual consolidated financial statements and accompanying notes which were presented in the
Corporation’s 2023 Annual Report.

2. INCOME TAXES
The effective income tax rates were as follows:

12 weeks
Fiscal Year
(Percentage) 2024 2023

Combined statutory income tax rate 26.5 26.5

Changes
Favorable tax adjustment in respect of prior years (1.6) —
Other 0.1 0.1
25.0 26.6

3. NET EARNINGS PER SHARE

Basic net earnings per share and fully diluted net earnings per share were calculated using the following number of
shares:

12 weeks
Fiscal Year
(Millions) 2024 2023

Weighted average number of shares outstanding – Basic 228.3 235.4

Dilutive effect under:
Stock option plan 0.4 0.6
Performance share unit plan 0.3 0.3
Weighted average number of shares outstanding – Fully diluted 229.0 236.3

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Notes to interim condensed consolidated financial statements
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, unless otherwise indicated)

4. DEBT
As at December 23, 2023, the revolving credit facility included loans of $125.0 (US $93.5) (nil as at
September 30, 2023) and the Corporation entered into cross currency interest rate swaps to hedge against the effect
of interest rate fluctuations on the USD borrowings. As at December 17, 2022, the revolving credit facility included
loans of $100.0 (US $74.0) and the Corporation entered into cross currency interest rate swaps to hedge against the
effect of interest rate fluctuations on the USD borrowings. During the period ended March 11, 2023 the Corporation
repaid all our revolving credit facility drawn in US currency and the cross-currency interest rate swaps entered into
during the period ended December 17, 2022 came to maturity.

On February 6, 2023, the Corporation issued through a private placement Series K unsecured senior notes in the
aggregate principal amount of $300.0, bearing interest at a fixed nominal rate of 4.66%, maturing on
February 7, 2033. In anticipation of this issuance, on November 14, 2022, the Corporation entered into a bond
forward contract designated as cash flow hedge on a component of a highly probable future debt issuance in the
amount of $250.0 that effectively locked-in a 10-year fixed interest rate of 2.996%. The effective part of the loss on
the hedging instrument was recognized in Other Comprehensive Income. Following the Series K Notes issuance, the
amounts accumulated in equity were reclassified to net financial costs on a linear basis over the life of the debt.

During Fiscal 2022, the Corporation entered into a $300.0 interest rate swap effectively locking in a floating rate of
interest of 11 basis points (0.11%) over the 3-month bankers' acceptance rate (CDOR) over the life of the Series J
Notes. As at December 23, 2023, the balance of the Series J unsecured senior notes was $292.7 ($288.9 as at
September 30, 2023), reflecting an increase in fair value adjustments relating to interest rate swaps designated as fair
value hedges of $3.8 in 2024 (increase of $3.8 in 2023).

5. CAPITAL STOCK

COMMON SHARES ISSUED

The Common Shares issued and the changes during the 12-week period ended December 23, 2023 were
summarized as follows:

Number
(Thousands)
Balance as at September 24, 2022 236,929 1,649.3
Shares redeemed for cash, excluding premium of $529.0 (8,170) (57.0)
Stock options exercised 190 8.8
Balance as at September 30, 2023 228,949 1,601.1
Shares redeemed for cash, excluding premium of $104.6 (1,705) (11.9)
Stock options exercised 83 3.8
Balance as at December 23, 2023 227,327 1,593.0

TREASURY SHARES
The treasury shares changes during the 12-week period ended December 23, 2023 are summarized as follows:

Number
(Thousands)
Balance as at September 24, 2022 335 (16.2)
Acquisition 99 (7.6)
Release (138) 5.9
Balance as at September 30, 2023 and December 23, 2023 296 (17.9)

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Notes to interim condensed consolidated financial statements
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, unless otherwise indicated)

Treasury shares are held in trust for the performance share unit (PSU) plan. They will be released into circulation
when the PSUs settle. The trust, considered a structured entity, is consolidated in the Corporation's financial
statements.

Excluding treasury shares from the Common Shares issued, the Corporation had 227,031,000 outstanding Common
Shares issued as at December 23, 2023 (228,653,000 as at September 30, 2023).

STOCK OPTION PLAN

The outstanding options and the changes during the 12-week period ended December 23, 2023 were summarized as
follows:

Weighted
average
Number exercise price
(Thousands) (Dollars)
Balance as at September 24, 2022 2,092 51.47
Granted 363 77.62
Exercised (190) 42.23
Cancelled (39) 58.03
Balance as at September 30, 2023 2,226 56.42
Granted 400 68.77
Exercised (83) 41.25
Cancelled (6) 69.51
Balance as at December 23, 2023 2,537 58.83

The exercise prices of the outstanding options ranged from $40.23 to $77.75 as at December 23, 2023 with expiration
dates up to 2030. Of these options, 848,456 could be exercised at a weighted average exercise price of $49.01.

The compensation expense for these options amounted to $0.7 for the 12-week period ended December 23, 2023
($0.6 in 2023).

PERFORMANCE SHARE UNIT PLAN

PSUs outstanding and changes during the 12-week period ended December 23, 2023 are summarized as follows:

Number
(Thousands)
Balance as at September 24, 2022 557
Granted 209
Exercised (138)
Cancelled (56)
Balance as at September 30, 2023 572
Cancelled (3)
Balance as at December 23, 2023 569

The compensation expense for the PSU plan amounted to $2.2 for the 12-week period ended December 23, 2023
($2.0 in 2023).

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Notes to interim condensed consolidated financial statements
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, unless otherwise indicated)

6. FINANCIAL INSTRUMENTS
The book and fair values of financial instruments, other than those with carrying amounts which were a reasonable
approximation of their fair values, were as follows:

As at December 23, 2023 As at September 30, 2023

Book value Fair value Book value Fair value

Other assets
Assets measured at amortized cost
Loans to certain customers 45.5 45.5 43.9 43.9

Debt
Liabilities measured at amortized cost
Revolving Credit Facility 235.7 235.7 39.9 39.9
Series J Notes 292.7 292.7 288.9 288.9
Series G Notes 450.0 437.1 450.0 421.0
Series K Notes (note 4) 300.0 307.8 300.0 281.0
Series B Notes 400.0 446.6 400.0 418.7
Series D Notes 300.0 307.3 300.0 276.4
Series H Notes 450.0 413.9 450.0 366.9
Series I Notes 400.0 321.9 400.0 273.4
Loans (note 8) 50.7 50.7 49.6 49.6
2,879.1 2,813.7 2,678.4 2,415.8

The fair value of loans to certain customers and loans payable are equivalent to their carrying values since their
interest rates are comparable to market rates. The Corporation categorized the fair value measurement in Level 2, as
it is derived from observable market inputs.

The fair value of notes represents the obligations that the Corporation would have to meet in the event of the
negotiation of similar notes under current market conditions. The Corporation categorized the fair value measurement
in Level 2, as it is derived from observable market inputs.

7. CHANGES IN DEFINED BENEFIT PLANS

During the 12-week period ended December 23, 2023, the Corporation recorded, in the consolidated statements of
comprehensive income, actuarial losses of $24.3 mainly attributable to the decrease in the discount rate of 0.93%,
net of variations in the fair value of assets. During the 12-week period ended December 17, 2022, the Corporation
recorded, in the consolidated statements of comprehensive income, actuarial gains of $57.0 mainly attributable to the
increase in the fair value on plan assets, net of variations in the obligation.

Post-employment benefits expense recorded in the consolidated statements of income during the 12-week period
ending December 23, 2023 was $17.2 ($17.8 in 2023).

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Notes to interim condensed consolidated financial statements
Periods ended December 23, 2023 and December 17, 2022
(Unaudited) (Millions of dollars, unless otherwise indicated)

8. COMPARATIVE FIGURES
Investment properties, bank loans, current and non-current provisions which were previously presented separately in
the consolidated statements of financial position are now presented respectively in other assets, current portion of
debt, accounts payable and other liabilities.

9. APPROVAL OF FINANCIAL STATEMENTS

The interim condensed consolidated financial statements for the 12-week period ended December 23, 2023
(including comparative figures) were approved for issue by the Board of Directors on January 29, 2024.

INFORMATION
METRO INC.’s Investor Relations Department
Telephone: (514) 643-1000

METRO INC.’s corporate information and press releases are available on our website: www.corpo.metro.ca

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