233159
231312


Loblaw profits up 57%

Canada's largest grocery business, Loblaw Companies Ltd., is reporting a 57 per cent jump in fourth-quarter profit.

The company, based in Brampton, Ont., says the increase in its net income for common shareholders was partly due to operational improvements and partly due to special items in both years.

Revenue for the quarter was $11.13 billion of revenue, up $265 million or 2.4 per cent — with most of the increase coming from the retail segment that includes various grocery stores banners and Shoppers Drug Mart.

Loblaw said the timing of New Year's Day this year helped boost same-store sales in both the food and drug retail operations.

The food retail segment, excluding revenue from gasoline sales, saw same-store sales rise 1.1 per cent and same-store sales at Shoppers was up 3.4 per cent — reflecting sales growth at locations open at least a year.

Loblaw had a $201 million net profit in the fourth quarter, or 50 cents per common share — up $73 million from a year earlier.

The company, which is the main subsidiary of George Weston Ltd., said $30 million of the year-over-year improvement was due to operational improvements that followed a reorganization of its retail network last year.

It said $43 million of the improvement was due to a variety of unusual items — especially negative items recognized in the fourth quarter of 2015, although its Shoppers Drug Mart business recorded a number of negative items related to changes to Ontario's long-term care industry.

Loblaw owns Canada's largest grocery business and the Shoppers Drug Mart pharmacy chain, as well as the Joe Fresh clothing business, PC Financial personal banking and a stake in the Choice Properties real estate investment trust.



More Business News



226943
232482
Data from CryptoCompare
RECENT STORIES
232228
Castanet Proud Member of RTNDA Canada
230127
Press Room
232177