- Loblaw Companies Limited (L) has announced its unaudited financial results for its second quarter ended June 18, 2022
- The company recorded strong operational and financial results, with Drug Retail driving overall margin expansion
- The results showed an increase of 2.9 per cent, or $356 million, in revenue to $12.847 billion
- Net earnings available to common shareholders of the company stood at $387 million, an increase of $12 million or 3.2 per cent
- Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers
- Loblaw Companies Limited was down 2.441per cent, trading at $118.71 at 12:43 PM ET
Loblaw Companies Limited (L) has announced its unaudited financial results for its second quarter ended June 18, 2022.
The company recorded strong operational and financial results with Drug Retail driving overall margin expansion, as sales benefited from growth in higher margin front-store categories.
The company’s Food Retail also showed continued positive trend, with its conventional stores performing well relative to peers and sales growth in its discount banners. This was enhanced by the strength of the No Frills and Maxi hard-discount stores and the company’s value-focused control brand no name.
“Loblaw delivered consistent operating and financial results, as customers recognized the value, quality and convenience delivered through our diverse store formats, control brand products, and our PC Optimum loyalty program,” stated Galen G. Weston, Chairman and President, Loblaw Companies Limited.
“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,” he added.
High points of the results include an increase of 2.9 per cent, or $356 million, in revenue to $12.847 billion.
There was also a 2.8-per-cent increase, or $341 million, in Retail segment sales to $12.623 billion.
The Food Retail (Loblaw) same-stores sales witnessed an increase of 0.9 per cent. Drug Retail (Shoppers Drug Mart) same-store sales increased by 5.6 per cent.
On the flip side, E-commerce sales decreased by 17.5 per cent, following the relaxation of COVID-19 lockdowns.
Operating income also dropped to $742 million, which was a decrease of $10 million, or 1.3 per cent. The company explained that operating income was negatively impacted by $111 million as a result of a charge related to a President’s Choice Bank (PC Bank) commodity tax matter.
Net earnings available to shareholders of the company stand at $387 million, an increase of $12 million or 3.2 per cent.
In May 2022, Loblaw acquired Lifemark Health Group, thereby expanding its rising profile as a healthcare service provider, with a network of health and wellness solutions, accessible in-person and digitally.
Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers.
Loblaw Companies Limited was down 2.441per cent, trading at $118.71 at 12:43 PM ET.
