Loblaw Companies Limited's Galen G. Weston Reports 2017 First Quarter Financial Results
BRAMPTON, ON - Loblaw Companies Limited has revealed financial results for its first quarter of 2017, beating analysts estimates with a profit of 90 Canadian cents (65.6 cents), an increase of 9.8% compared Q1 2016, despite the difficult retail climate and Canada’s continued battle against deflation.
"We continued to invest to deliver value to consumers," shared Chairman and Chief Executive Officer Galen G. Weston upon the report. "We are pleased with our performance in the first quarter, against a highly competitive food retail environment and despite the pressures of deflation and healthcare reform."
While shares generally fell around 1 percent, Loblaw’s made positive strides in its performance. Loblaw reached a revenue of over $10.4 billion, an increase of $20 million, or 0.2%, compared to the first quarter of 2016, while retail segment sales were around $10.12 billion, an increase of $12 million, or 0.1%, compared to the first quarter of 2016.
With the rest of 2017 somewhat up in the air for many Canadian grocers, Loblaw reported that this year the company hopes to do the following:
- Deliver positive same-store sales/stable gross margin in retail segment during a highly competitive grocery market
- Grow adjusted net earnings
- Invest approximately $1.3 billion in capital expenditures, including $1.0 billion in retail
- Return capital to shareholders by allocating a significant portion of free cash flow to share repurchases
Other financial highlights found in Loblaw’s report include:
- Operating income of $492 million, an increase of $56 million, or 12.8%, compared to Q1 2016
- Adjusted EBITDA of $865 million, an increase of $36 million, or 4.3%, compared to Q1 2016
- Net earnings of $230 million, an increase of $37 million, or 19.2%, compared to Q1 2016
- Adjusted diluted net earnings per common share were $0.90, an increase of $0.08, or 9.8%, compared to Q1 2016
- The Company repurchased 3.4 million common shares at a cost of $240 million
As Loblaw continues to modestly succeed in its uphill battle for Canada’s grocery retail share, stay tuned to AndNowUKnow for the latest.