Loblaw Companies Ltd. reported its third-quarter revenue rose about 30 per cent in contrast with a 12 months in the past.
The grocery and drugstore retailer says its internet earnings out there to frequent shareholders totalled $556 million, or $1.69 per diluted share, for the quarter ended Oct. 8. The outcome was up from $431 million, or $1.27 per diluted share, in the identical quarter final 12 months.
Revenue totalled $17.39 billion, up from $16.05 billion in its third quarter of 2021.
Food retail same-store sales rose 6.9 per cent, whereas drugstore same-store sales added 7.7 per cent.
Sales have been led by robust efficiency within the grocer’s low cost banners, together with No Frills and Real Canadian Superstore, the corporate stated.
The grocer additionally famous a continued shift to personal label manufacturers similar to President’s Choice and No Name.
Loblaw stated Canadian retail meals inflation remained among the many lowest of G7 international locations however that “world inflationary forces continued to extend the fee of meals within the quarter.”
“Loblaw’s efforts to reasonable price will increase and supply superior worth to prospects by its PC Optimum Program and promotions resulted in robust sales and secure gross margins in meals retail,” the corporate stated in a report back to shareholders.
Higher-margin sales offset flat meals margins
In its drugstores like Shoppers Drug Mart, revenues benefited from elevated sales of higher-margin classes like beauty, cough and cold, Loblaw stated.
On an adjusted foundation, Loblaw says it earned $2.01 per diluted share, up from an adjusted revenue of $1.59 per diluted share a 12 months in the past.
Analysts on common had anticipated a revenue of $1.96 per share and $16.85 billion in income, in line with estimates compiled by monetary markets information agency Refinitiv.