Western Grocer Serving the industry since 1916
BRAMPTON, ONTARIO July 26, 2023 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the second quarter ended June 17, 2023¹.
Loblaw delivered another quarter of strong operational and financial results as it continued to execute on retail excellence. The quarter was characterized by increased sales, a focus on value, and lower gross margins. Net earnings were up 31.3%, unusually elevated by lapping a prior year charge at President’s Choice Bank (“PC Bank”), while adjusted net earnings were up 10.6%. Loblaw’s ability to deliver everyday value and savings to Canadians was reflected in strong sales growth across its Food and Drug businesses. Food Retail sales growth was led by a continued consumer shift to discount stores, as customers continued to find value in Loblaw’s private label brands and personalized PC OptimumTM offers. Drug front-store and pharmacy sales remained strong, led by continued strength in beauty products. Retail gross margin declined slightly in both Food and Drug as the Company faced double digit supplier cost increases that were not fully passed on to consumers, and higher shrink. Higher sales and cost control initiatives drove adjusted net earnings growth in the quarter.
“Our businesses remain focused on providing Canadians with the selection, freshness, care and value they need today,” said Galen G. Weston, Chairman and President, Loblaw Companies Limited. “We will build on this strength and continue to take meaningful steps to fight back against inflation. Our discount offering, best-in-class control brand products and PC OptimumTM Program are resonating with customers who are looking for value without sacrificing quality.”
