Loblaw Q3 Earnings Up From A Year Ago As Food Inflation Rise – Nationwide

Loblaw Companies Ltd. reported third-quarter profit growth of approximately 30% year-on-year.

Net income available to common shareholders for the quarter ended October 8 totaled $556 million, or $1.69 per diluted share, according to the grocery and drugstore retailer. This result increased from $431 million, or $1.27 per diluted share, in the same quarter last year.

Revenue increased to $17.39 billion from $16.05 billion in Q3 2021.

Grocery retail same-store sales were up 6.9%, while drugstore same-store sales were up 7.7%.

The company said sales were driven by strong sales of discount banners at grocery stores such as No Frills and Real Canadian Superstore.

Grocers also noted a continued shift to private label brands such as President’s Choice and No Name.

Although Canada’s retail food inflation remains the lowest among the G7 countries, Roblow said “global inflation factors continue to push food prices higher in the quarter”.

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In a statement to shareholders, the company said, “Through the PC Optimum program and promotions, Loblaw’s efforts to reduce cost increases and deliver superior value to customers have resulted in increased sales and stable gross margins in the food retail industry. I was taken down,” he said.

Drugstores such as Shoppers Drug Mart benefited from higher sales in higher-margin categories such as beauty, cough and cold, Loblaw said.

On an adjusted basis, Loblaw said it had earnings of $2.01 per diluted share, up from adjusted earnings of $1.59 per diluted share a year ago.

Analysts had expected an average earnings of $1.96 per share and earnings of $16.85 billion, according to estimates compiled by financial market data firm Refinitiv.

© 2022 The Canadian Press