Loblaw Companies Limited reported its fourth quarter profit and revenue were up with retail segment sales growing 7.5 per cent compared to the fourth quarter in 2019.
Revenue grew 7.1 per cent to $12,408 million in the quarter, while food retail same-store sales grew 8.6 per cent with the company’s market division delivering strong growth of 10.6 per cent and discount with 7.4 per cent growth. Drug retail same-store sales increase 3.7 per cent with pharmacy sales growth of 5.0 per cent and front store sales up 2.8 per cent. E-commerce sales jumped 160 per cent compared to the fourth quarter 2019.
"In stores and online, our network met the challenge of outsized sales growth, keeping Canadians fed and well," says Galen G. Weston, executive chairman, Loblaw Companies Limited. "Our purpose – helping Canadians live life well – has inspired ongoing commitments to colleague safety, lower prices, and strategic services that matter to customers. Looking ahead, we have financial momentum, our strategy has advanced, and our core business is well positioned."
Loblaw says it anticipates that grocery sales will “remain elevated in the first half [of 2021] due to continued impact of the pandemic, including the impact of lockdown measures in many jurisdictions.” It also says it expects its core retail business to grow earnings faster than sales and growth in PC Financial profitability.
Loblaw says it plans to invest approximately $1.2 billion in capital expenditures in 2021.