Canadian retailer Loblaw Companies has recorded a 1.5% increase in total revenue for the third quarter (Q3) of fiscal year 2024 (FY 2024), reaching C$18.53bn ($13.26bn), compared to C$18.26bn reported in the same period of the previous fiscal year.
The company’s retail segment sales mirrored this growth, also rising by 1.5% to C$18.25bn.
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Notably, Loblaw saw its food retail same-store sales grow by 0.5% during the quarter ending on 5 October 2024, compared to the 4.5% increase experienced last year.
Further breaking down the sales figures, food retail same-store sales grew by approximately 1.3% while drug retail same-store sales saw a more robust increase of 2.9%, albeit lower than the 4.6% growth observed in the previous year.
Meanwhile, Loblaw’s e-commerce segment demonstrated strong momentum with an 18.5% surge in sales.
On the profitability front, Loblaw’s operating income for Q3 FY 2024 was notably higher at C$1.32bn, marking a substantial 24.0% increase from C$1.06bn in Q3 FY 2023.
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By GlobalDataThe earnings before income taxes followed suit, climbing to C$1.08bn from C$831m in the corresponding quarter of the last fiscal year.
Its net earnings available to common shareholders showed a significant uptick, standing at C$777m in Q3 FY 2024, a 25.1% jump from C$621m in Q3 FY 2023.
Loblaw’s diluted net earnings per common share rose by 29.7%, reaching C$2.53 up from C$1.95 in the prior-year quarter.
Loblaw president and CEO Per Bank said: “Increased customer traffic to our stores this quarter demonstrates that we are delivering the value, quality and service our customers count on.
“Our relentless focus on retail excellence allows us to provide great value to Canadians and invest to deliver future growth while delivering strong financial results.”
Looking ahead, Loblaw aims to maintain its commitment to retail excellence and advance its growth initiatives throughout this year.
It expects retail business earnings to grow faster than sales and continue to return capital to shareholders through significant free cash flow allocation to share repurchases.
In August, Loblaw Companies unveiled plans to pilot a new no-name store concept in three markets in Ontario.
