loblaw earnings report

Loblaw made $508M in the last three months amid cost of living crisis

Loblaw Companies Limited continues to see gains in profit and revenue as Canadians struggle to keep up with the soaring cost of living.

The grocery giant reported a profit of $508 million available to its common shareholders from its second quarter this year. That's an increase of $121 million, or 31.3 per cent, compared to last year.

This increase is, in part, due to a one-time charge of $111 million related to a PC Bank commodity tax matter, clarifies the report.

The Loblaws and Shoppers Drug Mart parent company's revenue for the second quarter, which ended on June 17, amounted to a whopping $13.7 billion. It increased by $891 million, or 6.9 per cent, from last year.

"Our businesses remain focused on providing Canadians with the selection, freshness, care and value they need today," said Loblaw chairman and president Galen G. Weston in a statement.

There seems to be a demand for what Loblaw is putting out based on the numbers in its report.

According to the company, it made $13.4 million in retail segment sales, with food from Loblaws and drugs from Shoppers Drug Mart being its biggest moneymakers.

Food sales increased by 6.1 per cent, and drug sales rose by 5.7 per cent, reported Loblaw.

The grocery giant added that its customers continued "to find value in Loblaw's private label brands and personalized PC Optimum™ offers."

Despite this, a Loblaw spokesperson told Daily Hive over email that its food margins are down this quarter.

"Meaning the costs from our suppliers are growing faster than our prices," said the spokesperson.

"We will build on this strength and continue to take meaningful steps to fight back against inflation," said Weston. "Our discount offering, best-in-class control brand products and PC Optimum Program are resonating with customers who are looking for value without sacrificing quality."

Recent public opinion on Weston's stance on inflation begs to differ.

Many Canadians dragged the president for defending high food prices when he testified before a House of Commons committee about rising food prices earlier this year.

The million-dollar profits from Loblaw may be a sore spot for Canadians who are feeling the pinch, so much so that many say even the government's grocery rebate payments aren't enough to help.

Lead photo by

Fareen Karim

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