Loblaw earnings shows half a billion in profits as Canadians grapple with rising food costs
Loblaw Companies Ltd. released its financial results for the fourth-quarter on Thursday, which reveal the company earned $529 million in Q4 profits.
Compared with a year ago, the parent company of Loblaws grocery stores and Shoppers Drug Mart saw a fourth-quarter revenue rise by nearly 10 per cent.
Too bad to hear that while the general population is suffering from inflation and squeezed pockets, companies are doing great, which is not after strong demand for food, but rather after strong demand for food prices increase— Tony Sang (@tonysang) February 23, 2023
The report states that retail segment sales grew by 9.7 per cent, and drug retail sales continued to grow as well amid the high demand for cough and cold products. Drug retail (Shoppers Drug Mart) same-store sales increased by 8.7 per cent.
The company said it earned a profit available to common shareholders of $529 million, and earned (on an adjusted basis) $1.76 per share.
Profits up 10% in a quarter. Prices rose 10% over last year. Tell me again that Loblaws cannot afford to keep their prices steady without hurting their profit margin.— @firstname.lastname@example.org (He/Him) (@capntightpants) February 23, 2023
The report says that gross margins were slightly lower, which were largely attributed to the No Name price freeze.
Overall revenue increased to just over $14 billion, which is up from the $12.8 billion the company saw in the fourth-quarter of 2021.
Disgraceful when people are struggling! It would help if they put some of their profits back to the needs of the community.— Bonnie H (@BonnieH95824610) February 23, 2023
CEO of Loblaw Companies, Galen Weston, has been at the centre of controversy amid rising inflation and food costs, with critics noting his "excessive" salary, as well as the retailer's recent decision to end its infamous price freeze on No Name products.
Representatives for Weston told the Toronto Star last week that they would — if asked — provide testimony to the House of Commons Standing Committee on Agriculture and Agri-Food and he would face questions about food prices and rising profits.
"If requested (Loblaw CEO Galen Weston) will attend, and we look forward to reinforcing the testimony we have already provided that highlights the work we've done to fight inflation for customers," Loblaw told the Toronto Star in an email.
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