Loblaw Companies Limited third quarter profit increased 29 per cent and saw better-than-expected revenue growth.
The company reported net earnings of $556 million compared to the same period a year ago of $431 million. Revenue increased 8.3 per cent to $17,388 million in the same period.
Retail segment sales increased 8.2 per cent to $17,130 million. Within the segment, food retail (Loblaw) same-store sales increased 6.9 per cent (food retail sales were $12,221 million) versus 0.2 per cent growth in 2021, and drug retail sales were $4,909 million, and same store sales climbed 7.7 pe cent versus 4.4 per cent in 2021. Loblaw says food retail basked size decreased and traffic increased. Pharmacy and healthcare services same store sales grew 4.7 per cent versus 4.8 per cent in 2021, and front store same store sales grew 10.7 per cent versus 4.1 per cent in 2021. E-commerce sales grew by 3 per cent.
Loblaw said in its reporting that it has made efforts to moderate cost increases and provide value to its customers through its points program and promotions.
“In a difficult economic environment, Loblaw is putting the strength of its unique assets to work for Canadians, offering record loyalty rewards, unmatched private-label brands, the best discount stores, and an inflation-fighting price freeze,” said Galen G. Weston, chairman and president, Loblaw Companies Limited. “Customer expectations for value have never been higher, and we are working hard to meet them.”
Loblaw says it expects to grow earnings faster than sales and to invest approximately $1.4 billion in capital expenditure, "net proceeds from property disposals, reflecting incremental store and distribution network investments."