Loblaw Companies reports profit of $508 million in second quarter

“We have received double-digit increases from the same suppliers who gave us double-digit increases last year. That’s why you see products that are noticeably more expensive than they were just a couple years ago,” said CFO Richard Dufresne on a conference call with analysts.“While cost increases are coming in from all tiers of our supplier base, the largest global brands stand out.”

Canada’s grocery giants, the largest of them being Loblaw, have been under increased scrutiny amid breakneck inflation that’s especially hit food prices. While overall inflation has been moderating, most recently to 2.8 per cent in June, grocery prices have continued to grow, up 9.1 per cent last month.

The largest grocers have increased the amount they make on food sales in recent years, the bureau said, with the three biggest grocers collectively reporting around $3.6 billion in profits last year. Food gross margins increased by a “modest yet meaningful” amount of one to two percentage points over the last five years, the study found.Article content

The parent company of Loblaws and Shoppers Drug Mart reported its profit amounted to $1.58 per diluted share for the quarter ended June 17, an increase from $1.16 per diluted share in the same quarter last year.Food retail same-stores sales were up 6.1 per cent, while drug retail same-store sales increased by 5.7 per cent.Article content

However, it added that retail gross margin declined slightly in both the food and drug categories, saying it faced double-digit supplier cost increases that were not fully passed on to consumers.Advertisement 6The negotiations between grocers and suppliers, normally out of the limelight, have been in sharper focus amid high food inflation.

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Loblaw Companies reports profit of $508 million in second quarterBRAMPTON, Ont. — Loblaw Companies Ltd. reported a profit available to common shareholders of $508 million for its second quarter, an increase of 31.3 per cent from the same period last year. The parent company of Loblaws and Shoppers Drug Mart reported its profit amounted to $1.58 per diluted share for the quarter ended June 17, an increase from $1.16 per diluted share in the same quarter last year. Revenue for the 12-week period totalled $13.7 billion, up from $12.8 billion a year earlier. Food
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Loblaw Companies reports profit of $508 million in second quarterLoblaw Companies Ltd. reported a profit available to common shareholders of $508 million for its second quarter, an increase of 31.3 per cent from the same period last year.
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Loblaw Companies reports profit of $508 million in second quarterBRAMPTON, Ont. — Large global suppliers are driving costs higher for Loblaw Companies Ltd., the firm said as it released earnings for the second quarter that…
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