Loblaw posts higher profit and revenue in Q3

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Loblaw posts higher profit and revenue in the 3rd quarter

Loblaw reported earnings of $2.01 per share, up from $1.59 per share a year ago.

Loblaw Companies on Wednesday posted third-quarter earnings up about 30% from the same period last year.

La chaine Grocery and Drug Stores reported net income attributable to common shareholders of $556 million, or $1.69 per share, for the quarter ended Oct. 8. By comparison, it had earned a profit of $431 million, or $1.27 per share, for the same period a year earlier.

Revenue totaled $17.39 billion, up from $16.05 billion in the third quarter of 2021.

Sales at grocery stores open for at least a year sales were up 6.9%, while those of comparable drugstores rose 7.7%.

Sales were supported by the strong performance of discount stores in the x27;grocer, including No Frills and Real Canadian Superstore, Loblaw said.

The company further pointed to the continued trend among consumers to choose private labels like President's Choice and No Name.

Price inflation Canadian food retailing remained among the weakest among G7 nations, Loblaw said, but global inflationary forces (did) continue to drive food costs higher in the quarter, Loblaw said in a statement. release.

Loblaw's efforts to moderate cost increases and deliver superior value to customers through its PC Optimum program and promotions resulted in strong grocery sales and stable gross margins retail, the company continued.

At Shoppers Drug Mart pharmacies (Pharmaprix in Quebec), revenue benefited from stronger sales in categories where profit margins are higher, such as beauty products and cold and flu treatments, Loblaw said.

On an adjusted basis, Loblaw reported a profit of $2.01 per share, up from $1.59 per share a year ago.

Analysts were expecting average adjusted profit of $1.96 per share and revenue of $16.85 billion, according to forecasts collected by the data firm s Financial Refinitiv.

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