BRAMPTON, CANADA - Loblaw announced its Q3 2015 financial results this morning, delighting shareholders with a 17 percent increase in earnings over the same quarter last year. Net earnings reached a high of $166 million, and adjusted net earnings hit an impressive $408 million.
“In the third quarter, our business remained focused on delivering the best in food experience, best in health and beauty, operational excellence, and growth,” explained Galen G. Weston, President and Executive Chairman of Loblaw Companies Limited. “While the grocery industry remained competitive, and the regulatory environment in healthcare challenging, we maintained a stable trading platform, achieved incremental efficiencies and delivered planned synergies.”
Weston continued by saying that after reaching its debt alleviation target during Q3, Loblaw is now beginning to increase its focus on returning capital to shareholders.
While the increase in food sales were the most notable part of Loblaw’s financial report, other highlights included:
- Retail segment sales were $13.7 billion, an increase of 2.5% compared to the third quarter of 2014.
- Food retail same-store sales growth was 3.1%.
- Adjusted EBITDA was $1.02 billion, an increase of 2.1% compared to the third quarter of 2014.
- Net earnings were $166 million, an increase of 16.9% compared to the third quarter of 2014.
- Adjusted net earnings were $408 million, an increase of 10.0% compared to the third quarter of 2014.
- Basic net earnings per common share were $0.40, an increase of 17.6% compared to the third quarter of 2014.
- Adjusted basic net earnings per common share(2) were $0.99, an increase of 10.0%.
Loblaw beat analysts' expectations, according to the Financial Times, and the stocks responded accordingly. According to Google Finance, stocks were up 2 percent and nearly 1 and a half points.
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