CANADA: Loblaw Q3 profit down on one-offs
- Q3 net income down 5.9%
- Sales drop 1%
- Dividend hike "reflects confidence"
Loblaw "confident" as profits slide
Canadian supermarket group Loblaw has said profits fell during the third quarter as one-time items weighed on the bottom line.
Loblaw's net income fell by 5.9% to C$222m (US$222m) after charges including C$29m related to its ongoing IT and supply chain overhaul. Excluding exceptional items, earnings would have increased by 1.1%, the group emphasised.
Overall revenue at the retailer grew by 1% in the period, climbing to C$9.8bn from C$9.7bn, while like-for-like sales dropped 0.2%.
Commenting on the group's performance, executive chairman Galen Weston said the group had positioned itself for long-term success.
"Targeted investments in the customer proposition are delivering clear results, the infrastructure program remains on track, and planned efficiencies are beginning to come through," he said.
Loblaw said that it is raising its third-quarter dividend by almost 5% to $0.22 a share. Weston said that the move reflects the board's "confidence" that "management's long-term strategy will build shareholder value over time".
Loblaw Companies Limited Reports 2012 Third Quarter Results(1)
BRAMPTON, ON, Nov. 14, 2012 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") today announced its unaudited financial results for the third quarter ended October 6, 2012. The Company's third quarter report will be available in the Investor Centre section of the Company's website at loblaw.ca and will be filed with SEDAR and available at sedar.com.
2012 Third Quarter Summary(1)
Basic net earnings per common share of $0.79, down 6.0% compared to the third quarter of 2011. EBITDA margin(2) of 6.6%, flat compared to the third quarter of 2011. Revenue of $9,827 million, an increase of 1.0% over the third quarter of 2011. Retail sales growth of 0.7% and same-store sales decline of 0.2% compared to the third quarter of 2011. "In the third quarter, the team executed the plan. Targeted investments in the customer proposition are delivering clear results, the infrastructure program remains on track, and planned efficiencies are beginning to come through," said Galen G. Weston, Executive Chairman, Loblaw Companies Limited. "We are pleased with the fundamental progress to-date - the dividend increase announced this morning reflects the Board's confidence that management's long-term strategy will build shareholder value over time."
Original source: Loblaw
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