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Loblaw posts sales, earnings increase in Q1

The addition of acquired Shoppers Drug Mart stores helped Loblaw record higher sales and profits in the fiscal first quarter, officials said Wednesday.

Jon Springer, Executive Editor

May 6, 2015

2 Min Read
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The addition of acquired Shoppers Drug Mart stores helped Loblaw record higher sales and profits in the fiscal first quarter, officials said Wednesday.

Loblaw’s retail segment saw revenues improve by 38.5% to $8.4 billion (U.S.) in the quarter, which ended March 28. Net earnings were up 21.7% to $122 million (U.S.). Same-store food sales, excluding fuel and adjusted for a change in tobacco distribution, improved by 2% in the quarter, driven primarily by price inflation. Including drug stores, comps improved by 2.3%, Loblaw said.

“In 2015 we continue to execute against the clear strategic framework we set out a year ago,”  Galen G. Weston , executive chairman and president, said in a prepared statement. “Our entire organization is focused on delivering the best in food, the best in health and beauty, operational excellence and growth. Although the grocery industry remains highly competitive and health care reform continues to challenge our pharmacy business, we are maintaining stable business performance, gaining incremental efficiencies, delivering synergies on schedule, deleveraging the balance sheet and achieving continued earnings growth.”

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Consolidated EBITDA of $657 million (U.S.), increased by 63.7% compared to the first quarter of 2014.

Loblaw, based in Brampton, Ontario, is Canada’s largest food retailer. It acquired the country’s largest drug chain, Shoppers Drug Mart, last year. The company said it realized $44 million (Canadian) in synergies from that deal in the quarter and that its expects to save $20 million (Canadian) for the year as a result of the deal.

The company said it expects competitive intensity expected to remain high, but relatively stable as industry square footage growth in supermarket merchandise moderates.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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