BRAMPTON, ON - Loblaw released its second quarter results, reflecting the current state of the market and how the company has implemented a strategic approach to business.
"Our base businesses continued to perform well in a very competitive marketplace despite significant cost pressures," Galen G. Weston, Chairman and Chief Executive Officer, said. "We are executing our strategy, improving processes, reducing cost, and expanding our digital presence to deliver the best in food, health, and beauty, for Canadians."
But beyond the issues the company highlighted in its press release was the following conference call. During the call, Weston expressed concerns over the current state of tariff tensions and what the future holds.
“We see a very strong possibility of an accelerating retail price inflation in the market,” Weston said, expressing that the new tariffs imposed by the Canadian federal government on July 1st on $16.6 billion of U.S. imports contributed to the market’s state, as well as higher transportation costs and low loonie contribute to the mounting pressures surrounding the conversation on prices, according to the Calgary Sun. “We don’t think it’s going to be meaningful, you know, super significant, but it certainly will be higher than what it is today.”
In the press release on the quarter itself, the following points were reflected:
- Revenue was CA $10.923 billion (US $8.357 billion), a decrease of CA $157 million (US $121 million), or 1.4%, compared to the second quarter of 2017
- Normalized for the disposition of the gas bar operations, Retail segment sales were CA $10.6 billion (US $8.11 billion), an increase of CA $105 million (US $80.3 million), or 1.0%, compared to the second quarter of 2017
- Operating income was CA $561 million (US $429 million), a decrease of CA $66 million (US $50 million), or 10.5%, compared to the second quarter of 2017
- Adjusted EBITDA was CA $1.027 billion (US $785 million), an increase of CA $41 million (US $31 million), or 4.2%, compared to the second quarter of 2017
- Net earnings available to common shareholders of the company were CA $50 million (US $38 million), a decrease of CA $309 million (US $236 million), or 86.1%, compared to the second quarter of 2017; diluted net earnings per common share were CA $0.13 (US $0.10), a decrease of CA $0.77 (US $0.59), or 85.6%, compared to the second quarter of 2017
- Adjusted net earnings available to common shareholders of the company were CA $421 million (US $322 million), a decrease of CA $25 million (US $19 million) or 5.6%, compared to the second quarter of 2017
- Adjusted diluted net earnings per common share were CA $1.11 ($0.85), flat compared to the second quarter of 2017
- The company repurchased 4.6 million common shares at a cost of CA $300 million (US $230 million)
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