BRAMPTON, ON - Loblaw stocks were on the rise this morning following the release of the company’s second quarter earnings report.
As of 12:52 PM EDT, Loblaw's stock was up $2.80 to $70.35, a 4.15 percent increase.
In its report, the grocery retailer posted over C$10 billion in retail segment sales, rising C$221 million (approximately $169 million U.S.) compared to the same time last year. Food retail was a strong part of that growth, rising 4.2 percent for the quarter.
Loblaw said that its second-quarter profits were C$185 million (approximately $142 million U.S.), compared with a loss of C$456 million during the same time last year. The Q2 2014 report included costs related to the Shoppers Drug Mart acquisition.
“I am pleased with our overall performance in the second quarter, as we continued to execute well against our strategic framework,” said Galen G. Weston, President and Executive Chairman. “Looking ahead, the grocery industry remains highly competitive and healthcare reform continues to put pressure on our pharmacy business. We are well positioned to achieve earnings growth through a stable trading platform, incremental efficiencies, synergies, and a stronger balance sheet.”
Though competition is expected to remain high, the company anticipates maintaining positive same-store sales and stable gross margin (excluding synergies) in the retail segment.
Other highlights from the report include:
- EBITDA was C$739 million (approximately $567 million U.S.) in Q2 2015, increasing C$856 million compared to Q2 2014
- Operating income was C$375 million (approximately $287 million U.S.) in Q2 2015, increasing C$871 million compared to Q2 2014
- Loblaw realized approximately C$53 million (approximately $40 million U.S.) of net synergies
Stay tuned to AndNowUKnow as we continue following Loblaw’s performance in the third quarter and beyond.
