Net earnings were $428 million, down $6 million from last year. Loblaw said it recorded a charge of $111 million in the quarter, due to aOn an adjusted basis, however, profit available to common shareholders was $566 million, up 22 per cent over last year. Adjusted net earnings per share were $1.69, up 25 per cent. Analysts were forecasting earnings per share of $1.59, according to a report from Bank of Nova Scotia analyst Patricia Baker.
Loblaw noted that its earnings-per-share growth was helped by share buybacks, as it spent $603 million on repurchases in the second quarter alone. Canada’s biggest grocer and its rivals in the sector have found themselves in the spotlight lately, since steep rises in Canadian grocery bills have helped drive the worstcrisis in decades. Grocers say they’ve been swarmed by suppliers, all asking for more money to offset increases in the cost of ingredients, transport, packaging, and labour. So Loblaw has had to decide whether to accept those cost increases and pass them onto the consumer, or absorb the extra costs in its profit margins.
Loblaw said it increased gross profit margins by 60 basis points in the quarter, to 31.2 per cent. But it said the boost came from its drug stores, not food retail.Article content
Canada has a vast amount of food producers where you can buy groceries directly from them! Why not pay the farmer? 🇨🇦 ReconnectWithYourFood
BS. It's the $2.50 per green pepper helping the bottom line.
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