Loblaw reports Q2 earnings of $751 million, up 5.2% from last year

Loblaw Companies reported net earnings of $751 million for its second quarter, an increase of $37 million from last year.

Retail sales increased by 4.1% to $15.05 billion for the period ended June 20.

Food retail same-store sales were up 1.6%, which Loblaw attributed to higher customer traffic, basket size and e-commerce sales growth.

The food and pharmacy retailer said its discount banners Maxi and No Frills continued to outperform.

Drug retail same-store sales grew 4.6% driven by strength in specialty and chronic prescriptions, as well as the beauty and OTC categories.

E-commerce sales increased by 19.3%.

The company opened 14 stores across its food and drug retail network in Q2, including seven discount stores, three drug stores and its first T&T Supermarket location in California.

Diluted net earnings per common share were $0.64, an increase of $0.05 from last year.

Loblaw said it will no longer report PC Financial earnings following the sale of the brand to EQB subsequent to the end of its second quarter. It will begin recognizing its proportionate share of EQB’s net income in its consolidated financial results.

As of the date of closing, Loblaw owned approximately 19.9% of EQB’s issued and outstanding common shares. In connection with the sale, Loblaw received $625 million in cash.

“Customers continue to reward us for delivering on their needs through increased traffic, basket size and topline sales,” said Per Bank, president and chief executive officer, Loblaw Companies Ltd., in a press release. “We are investing in new stores and growth as we make everyday essentials and healthcare more accessible while continuing to deliver strong financial results.”

Watch a video shared by Bank to LinkedIn, where he shares more on the company's financial results: