Loblaw Q2 profit up 18%
Loblaw 3-month TSX chart
Loblaw Companies Ltd. said Friday it posted an 18 per cent profit increase in the second quarter as its sales gained 1.5 per cent on higher drugstore and gas bar revenue.
The Toronto-based company said it made $140 million, or 51 cents, a share in the quarter. A year earlier, the company made $119 million, or 43 cents a share, in a quarter when it took 18 cents a share in restructuring charges.
Loblaw said its operating income rose more than 20 per cent to $263 million.
Sales climbed to $7.04 billion, from $6.93 billion.
Same-store sales were up 0.7 cer cent over the previous year, compared with growth of 2.7 per cent in Q2 of last year.
The company said the fact that Easter fell this year in its first quarter pulled its same-store sales down by 0.7 per cent.
Loblaw has been engaged in a lengthy revamp of its stores and its supply-chain system.
Company executive chairman Galen G. Weston said that after excluding charges for restructuring and stock compensation, Loblaw's operating income and basic net earnings per common share in the second quarter of 2008 were lower compared to the second quarter of 2007.
"As stated during our last quarter, we are behind in our plans for operating as an effective selling organization," said Weston. "This is reflected in our second quarter sales performance. However, we remain on track with our cost reduction efforts."
Shares of Loblaw slipped $1.12 to close at $29.25 on the TSX.
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