Loblaw second-quarter profit increases to $387M

 Loblaw Companies Ltd. has posted an increase in its second-quarter profit and revenues as drugstore sales boosted the company's margins and discount grocery store sales grew.

Canada's largest grocery and pharmacy chain says its net income available to common shareholders was $387 million or $1.16 per diluted share, a 3.2% increase from $375 million or $1.09 per share a year ago.

Adjusted profits for the three months ended June 18 was $566 million or $1.69 per diluted share, up from $464 million or $1.35 per diluted share in the second quarter of 2021.

Revenues were $12.85 billion, an increase of $356 million or 2.9% compared with $12.49 billion in the prior year quarter.

Food same-store sales increased 0.9% and pharmacy same-store sales increased 5.6%.

Galen G. Weston, Loblaw chairman and president, says customers recognized the value, quality and convenience of the company's diverse store formats, store brands such as No Name and the PC Optimum loyalty program.

"In the quarter we also continued to pursue our strategic growth agenda, with the completion of our acquisition of Lifemark Health Group, bolstering our healthcare services offering and furthering our purpose to help Canadians Live Life Well."