Loblaw profit jumps

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Loblaw Companies Ltd. is reporting double-digit increases to its profit and adjusted earnings for the first quarter.

The operator of Canada's largest grocery and pharmacy business had $193 million of net income for the quarter, up $47 million or 32.2 per cent from a year earlier.

Its adjusted net earnings were $338 million, up $37 million or 12 per cent — helped by increased cost savings.

Revenue was $10.4 billion, up $333 million or 3.3 per cent from the first quarter, with the bulk of it coming from the Loblaw grocery business and Shoppers Drug Mart pharmacy business.

Loblaw's profit amounted to 47 cents per share of net income and 82 cents of adjusted net earnings per common share, up from 35 cents of net income and 72 cents of adjusted earnings per common share.

Its common share dividend will rise to 26 cents per quarter, payable July 1, up four per cent from 25 cents per share.

The results were in line with analyst estimates compiled by Thomson Reuters.