Loblaw Companies Ltd. says it earned a profit available to common shareholders of $529 million in its latest quarter as its revenue rose nearly 10% compared with a year ago.
The retailer says the sales growth came as drugstore sales were driven by continued strong demand for cough and cold products and strength in the beauty and cosmetics categories, while its discount grocery stores outperformed.
"Loblaw used its assets to provide value to customers in a period of continued inflation,'' Loblaw chairman and president Galen Weston said in statement on Thursday (Feb. 23).
"Consumers responded favourably to those efforts and continued to benefit from our extensive private label offering, leading loyalty program and targeted promotions.''
The parent company of Loblaws grocery stores and Shoppers Drug Mart says its profit amounted to $1.62 per diluted share for the quarter ended Dec. 31, down from $744 million or $2.20 per diluted share a year earlier.
Revenue totalled $14 billion, up from $12.8 billion in the fourth quarter of 2021. The increase in revenue came as food retail same-store sales gained 8.4%, while drug retail same-store sales rose 8.7%.
On an adjusted basis, Loblaw says it earned $1.76 per diluted share in its latest quarter, compared with an adjusted profit of $1.52 per diluted share a year earlier.
Analysts on average had expected a profit of $1.71 per share and $13.7 billion in revenue, according to financial markets data firm Refinitiv.
In its outlook for 2023, the company said it expects its retail business to grow earnings faster than sales, with adjusted net earnings per common share growth in the low double digits.
Loblaw said it expects net capital expenditures of $1.6 billion for the year including gross capital investments of about $2.1 billion offset by $500 million in proceeds from real estate sales.