George Weston’s Loblaw business lead corporate growth in the company’s second quarter, reporting revenue of $12,847 million a 2.9 per cent revenue increase of $356 million compared to the same period last year. Revenue from Choice Properties was $313 million.
“Loblaw and Choice Properties delivered strong and consistent operating results during the second quarter and are well-positioned in the current economic environment,” said Galen G. Weston, Chairman and CEO, George Weston Limited. “George Weston’s strong and stable market-leading businesses continue to drive long-term value as they execute against their strategic agendas.”
The financial earnings report follows on the heels of Loblaw Companies Ltd. second quarter fiscal results on July 27, which reported an increase in profit and sales with drugstore and discount driving growth.
Retail sales and an improvement in financial services lead the Loblaw revenue increase. Retail sales were $12,623 million an increase of $341 million or 2.8 per cent. Food retail sales were $8,981 million and food retail same-store sales grew 0.9 per cent. Food retail basked size decreased and traffic increase in the quarter when compared to the same quarter last year. Drug retails sales were $3,642 million, with drug retail same-store sales growing 5.6 per cent. Within the drug retail sales segment, pharmacy and healthcare services same-store sales grew 6.1 per cent. Front same-store sales increased 5.2 per cent, with George Weston noting that it benefited from the continued economic reopening.
For 2022, George Weston says it expects adjusted net earnings from continuing operations to increase due to the results from its operating segments, and to use excess cash to repurchase shares.
“Loblaw will continue to execute on retail excellence in its core grocery and pharmacy businesses while advancing its growth initiatives in 2022.” Although the company says that “Loblaw cannot predict the precise impacts of COVID-19, the related industry volatility and inflationary environment on its 2022 financial results. On a full year basis, Loblaw continues to expect its retail business to grow earnings faster than sales; to invest approximately $1.4 billion in capital expenditures, net of proceeds from property disposals, reflecting incremental store and distribution network investments; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases.