Loblaw Achieves Robust Growth in 2023’s Third Quarter
Loblaw Companies Limited reported substantial growth in its 2023 third quarter, ending October 7, with revenues rising to $18.3-billion, a 5.0% increase. This surge was driven by a 5.0% rise in retail segment sales, reaching $17.9-billion. The company experienced growth across its Food Retail and Drug Retail segments, with Food Retail same-store sales growing by 4.5% and Drug Retail same-store sales by 4.6%.
“Our stores are delivering more value, including deeper discounts on essentials, and customers are responding positively,” said Chairman Galen Weston. “We remain focused on doing what we can to fight inflation and deliver lower prices for Canadians, while continuing to invest for the future.”
Notably, e-commerce sales expanded by 13.6%. Operating income increased by 7.5% to $1,07-billion, and net earnings available to common shareholders climbed by 11.7% to $621 million. Adjusted net earnings saw an 8.4% increase to $719 million.
The company’s focus on value across its Food and Drug Retail businesses, expansion of discount stores, and ongoing cost control initiatives contributed to these robust results, despite a decline in retail gross margin due to promotional investments and increased shrink. Loblaw’s strategic investments have effectively managed its internal food inflation below Canada’s food CPI, indicating a successful balance between growth and cost management.
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