Loblaw Reports 2018 Third Quarter Results
BRAMPTON, ON - Despite price inflations and cost pressures related to tariffs, Loblaw Companies has emerged victorious in both sales and strategy. Of late, Loblaw has doubled down on its operating efficiency and productivity and as a result reported better-than-expected financial results for its third quarter ended October 6, 2018.
According to a report by CTV News, Loblaw’s average item price was up in the third quarter—which was in-line with the retailer’s expectations—and is forecasted to increase in the fourth quarter as a result of tariffs and other cost pressures.
“We delivered strong financial results in the third quarter and we are pleased with the performance across our retail business,” said Loblaw’s Chairman and Chief Executive Officer Galen Weston in a press release. “Our strategy continues to build momentum as our data-driven insights and process and efficiency initiatives enable us to make additional investments in our future.”
According to a press release, Loblaw experienced the following highlights during its third quarter 2018:
- Revenue was $14,453 million, an increase of $261 million, or 1.8%, compared to the third quarter of 2017
- Retail segment sales were $14,105 million, an increase of $235 million, or 1.7%, compared to the third quarter of 2017
- Food retail (Loblaw) same-store sales growth was 0.9%, excluding gas bar operations
- Drug retail (Shoppers Drug Mart) same-store sales growth was 2.5%, with pharmacy same-store sales growth of 0.5% and front store same-store sales growth of 4.3%
- Operating income was $797 million, a decrease of $439 million, or 35.5%, compared to the third quarter of 2017
- Adjusted EBITDA(2) was $1,321 million, an increase of $92 million, or 7.5%, compared to the third quarter of 2017
- Net earnings available to common shareholders of the company were $106 million, a decrease of $777 million, or 88.0%, compared to the third quarter of 2017. Diluted net earnings per common share were $0.28, a decrease of $1.96, or 87.5%, compared to the third quarter of 2017
- Net earnings available to common shareholders of the Company were negatively impacted year-over-year by the charge related to Glenhuron Bank Limited ("Glenhuron") in the third quarter of 2018 and the prior year gain on disposition of gas bars operations
- Adjusted net earnings available to common shareholders of the company were $562 million, an increase of $13 million or 2.4%, compared to the third quarter of 2017
To read the financial report in its entirety, click here.
Will Loblaw continue to offset its rising retail prices with high shopper traffic to continue on its upward trajectory? AndNowUKnow will continue to keep on eye on the retail landscape.