Loblaw Companies Ltd. reported an increase in its first-quarter profit and sales compared with the same period last year, prompting the grocery and pharmacy retailer to raise its quarterly dividend.
Financial Highlights
The company, which operates grocery stores and pharmacies across Canada, said its net income attributable to common shareholders rose to $450 million, or $1.45 per diluted share, for the quarter ended March 28. That compares with $400 million, or $1.28 per diluted share, in the same quarter last year.
Revenue for the quarter totalled $13.2 billion, up from $12.8 billion a year earlier, driven by growth in both its retail and pharmacy segments.
Dividend Increase
Loblaw announced it will raise its quarterly dividend by 10 per cent to 55 cents per share, reflecting confidence in its financial position and future prospects.
“Our first-quarter results demonstrate the strength of our business and the continued execution of our strategy,” said Galen Weston, executive chairman of Loblaw. “We are pleased to increase our dividend as we remain focused on delivering value to our shareholders.”
Segment Performance
The retail segment saw same-store sales growth of 2.5 per cent, while the pharmacy and healthcare segment posted a 3.8 per cent increase in same-store sales. The company attributed the growth to strong demand for food and everyday essentials, as well as increased prescription volumes.
Loblaw also reported that its e-commerce sales continued to grow, with online grocery orders rising 15 per cent year over year.
Outlook
Looking ahead, Loblaw said it expects to continue investing in its network, including store renovations and expansions, as well as technology to enhance customer experience. The company reiterated its full-year guidance for adjusted net earnings per share growth in the range of 8 to 10 per cent.
“We remain committed to providing Canadians with affordable food and pharmacy services, while driving sustainable growth,” Weston added.
