Loblaw, Metro report higher profits as grocery, pharmacy sales surge

globalnews.ca:

Loblaw Cos. Ltd. reported its third-quarter profit and revenue rose compared with a year ago.

The parent company of Loblaws and Shoppers Drug Mart reported a profit available to common shareholders of $621 million or $1.95 per diluted share for the 16-week period ended Oct. 7.

The result compared with a profit of $556 million or $1.69 per diluted share in the same quarter a year earlier.

Revenue for the quarter totalled $18.27 billion, up from $17.39 billion in the same quarter last year.

The increase came as food retail same-stores sales rose 4.5 per cent and drug retail same-store sales gained 4.6 per cent, helped by front store same-store sales growth of 1.8 per cent and pharmacy same-store sales growth of 7.4 per cent.

On an adjusted basis, Loblaw says it earned $2.26 per diluted share, up from an adjusted profit of $2.01 per diluted share a year earlier.

Meanwhile. Metro Inc. reported a fourth-quarter profit of $222.2 million, up from $168.7 million in the same quarter last year as its sales rose 14 per cent.

The grocer says the profit amounted to 96 cents per diluted share for the 13-week period ended Sept. 30, up from 70 cents per diluted share a year earlier when the quarter included 12 weeks.

Metro says a five-week strike at 27 stores in the Greater Toronto Area during the quarter had a negative impact on its bottom line of about $27 million after taxes or 12 cents per share, while the extra week in the period had a favourable impact of $27 million net of tax or 12 cents per share.

Sales in the quarter totalled $5.07 billion, up from $4.43 billion a year earlier.

The increase came as food same-store sales rose 6.8 per cent and pharmacy same-store sales gained 5.5 per cent.

On an adjusted basis, Metro says it