Same-Store Food, Drug Sales Rise at Loblaw in Q2

Loblaw Companies Limited has released its Q2 results, which showed a rise in retail sales in both the food (Loblaws) and drug (Shoppers Drug Mart) segments.

For the period ended June 17, 2023, revenue was $13.7 billion CAD, an increase of $891 million or 6.9% year-over-year (YoY). Retail segment sales were $13.4 billion, an increase of $848 million or 6.7%. YoY. E-commerce sales in the quarter increased by nearly 14% YoY.

Both Loblaws and Shoppers Drug Mart had successful quarters in terms of same-store sales. Loblaws same-stores sales increased by 6.1%, while Shoppers Drug Mart same-store sales increased by 5.7%, with front store same-store sales growth of 5.0% and pharmacy same-store sales growth of 6.3%.

Operating income was $927 million, an increase of $185 million, or 24.9% YoY. Retail segment adjusted gross profit percentage was 31.1%, a decrease of 30 basis points. Net earnings available to common shareholders of the company were $508 million, an increase of $121 million or 31.3% YoY.

"Our businesses remain focused on providing Canadians with the selection, freshness, care and value they need today," said Galen G. Weston, chairman and president of Loblaw Companies Limited. "We will build on this strength and continue to take meaningful steps to fight back against inflation. 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."

Looking ahead to the remainder of the year, Loblaw Companies Limited said it will continue to invest in its network of stores and distribution centers by investing a net amount of $1.6 billion in capital expenditures.