Loblaw Companies reports Q3 profit up from year ago, revenue also higher

Loblaw Companies Ltd. reported its third-quarter profit rose compared with a year ago, boosted by the reversal of a charge at its President's Choice Bank after a Federal Court of Appeal decision.

The retailer, which includes Loblaws grocery stores and Shoppers Drug Mart, says its net earnings available to common shareholders totalled $777 million or $2.53 for the quarter ended Oct. 5. The result compared with a profit of $621 million or $1.95 per diluted share in the same quarter last year.

Revenue for the quarter totalled $18.54 billion, up from $18.27 billion a year earlier.

Same-store sales at its food stores were up 0.5%. After excluding the unfavourable impact of the timing of Thanksgiving, the company says food store same-store sales were up about 1.3 per cent.

Drug retail same-store sales were up 2.9% as pharmacy and health-care services same-store sales rose 6.3 per cent, but front store same-store sales fell 0.5 per cent. 

On an adjusted basis, Loblaw says it earned $2.50 per diluted share in its latest quarter compared with an adjusted profit of $2.26 per diluted share in the same quarter last year.