Loblaw Companies Ltd. raised its dividend 10% as it reported a profit available to common shareholders of $418 million for its first quarter.
The parent company of Loblaws and Shoppers Drug Mart says it will now pay a quarterly dividend of 44.6 cents per share, up from 40.5 cents per share.
The increase for shareholders came as Loblaw reported its profit amounted to $1.29 per diluted share for the quarter ended March 25, down from $437 million or $1.30 per diluted share in the same quarter last year when the company saw a one-time gain from a favourable court ruling.
Revenue for the 12-week period totalled nearly $13 billion, up from nearly $12.3 billion a year earlier. Food retail same-stores sales were up 3.1%, while drug retail same-store sales increased by 7.4%.
On adjusted basis, Loblaw says it earned $1.55 per diluted share in its latest quarter, up from an adjusted profit of $1.36 per diluted share a year ago.
Analysts on average had expected an adjusted profit of $1.55 per share and $13.2 billion in revenue, according to estimates compiled by financial markets data firm Refinitiv.