Loblaw reports Q1 profit up 30% year over year

Loblaw Companies Ltd. reported its first-quarter profit was up 30% compared with a year ago, helped by an improvement in its financial services business.

The grocery and drug store retailer says it earned a profit available to common shareholders of $313 million or 90 cents per diluted share for the quarter ended March 27.

The result compared with a profit of $240 million or 66 cents per diluted share in the same quarter last year.

The increase came as the company's financial services segment saw a $20-million reduction in its expected credit loss provisions in the quarter compared with a $50-million increase in the first quarter of 2020.

Revenue totalled $11.87 billion, up from $11.80 billion a year ago as food retail same-stores sales rose 0.1% and drug retail same-store sales fell by 1.7%.

On an adjusted basis, Loblaw says it earned $1.13 per diluted share, up from an adjusted profit of 97 cents per diluted share.