Canadian retailer Loblaw's revenue surges 6.9% YoY in Q2 FY23

31 Jul '23

2 min read

Pic: Paul McKinnon / Shutterstock.com

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Canada-based retailer Loblaw Companies' revenue increased by 6.9 per cent YoY to $13.74 billion in Q2 FY23, with retail sales up 6.7 per cent.
E-commerce sales grew by 13.9 per cent.
The company's operating income jumped by 24.9 per cent to $927 million in Q1 FY23, and net earnings to shareholders increased by 31.3 per cent to $508 million.

Loblaw Companies Limited has reported unaudited revenue of $13,738 million in the second quarter (Q2) of fiscal 2023 (FY23), an increase of 6.9 per cent year-on-year (YoY), or $891 million. The retail segment played a significant role in this growth, seeing sales rise by 6.7 per cent, or $848 million, amounting to $13,471 million. The e-commerce segment also contributed to the growth, marking a 13.9 per cent increase in sales.

In terms of profitability, the company saw a considerable surge in operating income, increasing by 24.9 per cent or $185 million, reaching $927 million. The adjusted EBITDA also witnessed a 9.4 per cent hike, or $141 million, amounting to $1,640 million.

However, the retail segment’s adjusted gross profit percentage saw a slight decrease, falling by 30 basis points to 31.1 per cent, the company said in a press release.

Net earnings available to common shareholders of the company increased by a substantial 31.3 per cent, or $121 million, to $508 million. The diluted net earnings per common share increased by 36.2 per cent, or $0.42, to reach $1.58.

When adjusted, the net earnings available to common shareholders of the company rose by 10.6 per cent, or $60 million, amounting to $626 million.

“Our businesses remain focused on providing Canadians with the selection, freshness, care and value they need today,” said Galen G Weston, chairman and president, 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.”

Fibre2Fashion News Desk (DP)

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