Loblaw reports profit increased nearly 12 per cent in its third quarter due to stronger-than-expected revenue of five per cent, led by shoppers looking for value amid rising grocery costs in the country.
The company says profit increased $621 million in the third quarter, up from $556 million a year ago. Revenue for the quarter reached $18.27 billion, up from $17.39 billion in the same quarter last year.
Retail segment sales increased five per cent to $17.92 million. The increase came as food retail same-stores sales rose 4.5 per cent and drug retail same-store sales gained 4.6 per cent, helped by front store same-store sales growth of 1.8 per cent and pharmacy same-store sales growth of 7.4 per cent. E-commerce sales grew 13.6 per cent.
“Our stores are delivering more value, including deeper discounts on essentials, and customers are responding positively,” said Galen G. Weston, Chairman, Loblaw Companies Limited. “We remain focused on doing what we can to fight inflation and deliver lower prices for Canadians, while continuing to invest for the future.”
Food retail sales benefited from increased traffic from customers and the company continued to invest in expansion of its discount banners, including the opening of its 150th discount Maxi in Quebec. Loblaw says it expects its retail business to grow earnings faster than sales and plans to increase investments in its store network and distribution centres with $1.6 billion in capital expenditures.
