Loblaw 1Q Profit Declines, Revenue Misses Views

By Adriano Marchese

Loblaw on Wednesday reported a decline in first-quarter profit, while revenue growth fell shy of forecasts.

The Canadian retailer reported lower net income of 418 million Canadian dollars ($306.7 million), or C$1.29 a share, compared with C$437 million, or C$1.30 a share, a year ago when the company benefited from a favorable court ruling that boosted earnings.

On an adjusted basis, earnings rose to C$1.55 a share from C$1.36, meeting analysts' forecasts for the period, according to FactSet.

Revenue rose 6% to C$13 billion from C$12.26 billion. Analysts were expecting a more pronounced increase to C$13.17 billion.

On a same-store basis, the company's food retail sales increased by 3.1% in the quarter, while its drug retail sales rose by 7.4%.

Loblaw also benefited from higher sales growth in more profitable front-store sales in its Shoppers Drug Mart stores, which offset a decline in food retail gross margin, citing continued increases in costs.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 03, 2023 07:08 ET (11:08 GMT)

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