Loblaw reports $621M Q3 profit, up from $556M a year ago, revenue up 5%

BRAMPTON, Ont. — Loblaw Cos. Ltd. reported its third-quarter profit and revenue rose compared with a year ago, as it said its discount stores saw higher traffic during the quarter.

The parent company of Loblaws and Shoppers Drug Mart reported Wednesday a profit available to common shareholders of $621 million or $1.95 per diluted share for the 16-week period ended Oct. 7.

The result compared with a profit of $556 million or $1.69 per diluted share in the same quarter a year earlier.

Revenue for the quarter totalled $18.27 billion, up from $17.39 billion in the same quarter last year.

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.

On an adjusted basis, Loblaw said it earned $2.26 per diluted share, up from an adjusted profit of $2.01 per diluted share a year earlier.

The company said its retail gross margin declined as a result of promotions and increased shrink, noting that its internal food inflation metric was lower than Canada’s food inflation number. 

This report by The Canadian Press was first published Nov. 15, 2023.

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The Canadian Press