Loblaw Co. Ltd. reported higher profits and sales for the third quarter, with its discount brands outperforming conventional stores as consumers continue to look for value amid high grocery prices.
The company on Wednesday released its earnings results for the quarter ended Oct. 4, reporting revenue growth of 4.6 percent to $19.4 billion, compared to $18.5 billion in the third quarter of 2024.
Its operating income was $1.38 billion, up 4.2 percent from the previous year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $2.2 billion, an increase of 7.2 percent.
Retail sales rose 4.5 percent to $19.08 billion in the third quarter. Retail drug sales rose 3.8 percent to $5.49 billion and same-store sales rose four percent.
Same-store food sales and food revenue were “well below” expectations, said Irene Nattel, an analyst at Royal Bank of Canada.
Retail food sales rose 4.8 percent to $13.59 billion and same-store sales rose two percent, missing the three percent growth forecast.
Loblaw said its food retail business attracted more customers and larger baskets in the quarter, resulting in its supermarket and discount brands outperforming other business sections in tonnage market share growth.
More to come…
