Loblaw reports Q1 profit and revenue up from year ago, raises quarterly dividend 15%

Grocery and drugstore retailer Loblaw Cos. Ltd. raised its quarterly dividend by 15% as it reported its first-quarter profit and revenue rose compared with a year ago.

The parent company of Loblaws and Shoppers Drug Mart says it will now pay a quarterly dividend of 51.3 cents per share, up from 44.6 cents per share.

The increased payment to shareholders came as Loblaw says it earned a profit available to common shareholders of $459 million or $1.47 per diluted share for the quarter ended March 23. The result was up from $418 million or $1.29 per diluted share in the same quarter last year.

Revenue for the quarter totalled $13.58 billion, up from $13.00 billion a year earlier.

Food retail same-stores sales rose by 3.4%, while drug retail same-store sales increased by 4%, with front store same-store sales up 0.7% and pharmacy and health-care services same-store sales up 7.3%.

On an adjusted basis, Loblaw says it earned $1.72 per diluted share in its latest quarter, up from an adjusted profit of $1.55 per diluted share a year earlier.