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Galen Weston
BRAMPTON, Ontario — Loblaw Cos. announced its unaudited financial results for the first quarter ended March 24, 2018.
“In the face of external headwinds, we delivered solid results, increased dividends, continued share buybacks, and invested in our digital future,” said Galen Weston, chairman and chief executive officer, Loblaw Companies Limited.
“As the retail landscape changes, we are now rapidly scaling our e-commerce pick-up and home delivery services to blanket Canada this year.”
In 2018, the Company plans a national roll-out of its on-line grocery business, including the rapid expansion of PC Express pick-up sites and the complementary option of home delivery. PC Express will be introduced to 500 new pick-up sites, bringing the total to more than 700, including more grocery stores, GO Train commuter stations, and the first of many Shoppers Drug Mart stores. Home delivery is currently offered in 11 major markets (including Toronto, Vancouver and Calgary) through Instacart, with five to follow this year (including Montreal, Halifax and Regina). Nationally, almost half of Canadians already have access to PC Express or home delivery. By year end, 70 percent of Canadians, from coast-to-coast, will have both options. In major urban markets, the Company aims for over 90 percent coverage, providing customers the option to grocery shop in-person, in their car, or from the comfort of their home.
The following highlights include the impacts of the consolidation of franchises and disposition of gas bar operations.
• Revenue was $10,367 million, a decrease of $37 million, or 0.4%, compared to the first quarter of 2017.
• Retail segment sales were $10,105 million, a decrease of $61 million, or 0.6%, compared to the first quarter of 2017.
Retail sales growth, excluding the disposition of gas bar operations, was 2.9%.
Food retail (Loblaw) same-store sales growth was 1.9%, excluding gas bar operations.
Drug retail (Shoppers Drug Mart) same-store sales growth was 3.7%, with pharmacy same-store sales growth of 3.5% and front store same-store sales growth of 3.8%.
• Operating income was $480 million, a decrease of $15 million, or 3.0%, compared to the first quarter of 2017.
• Net earnings available to common shareholders of the Company were $377 million, an increase of $145 million, or 62.5%, compared to the first quarter of 2017. Diluted net earnings per common share were $0.98, an increase of $0.40, or 69.0%, compared to the first quarter of 2017.
• Adjusted EBITDA was $876 million, an increase of $8 million, or 0.9%, compared to the first quarter of 2017.
• Adjusted net earnings available to common shareholders of the Company were $361 million, a decrease of $5 million compared to the first quarter of 2017. Adjusted diluted net earnings per common share were $0.94, an increase of $0.03, or 3.3%, compared to the first quarter of 2017.
