Loblaw announced growth in Q3 but says its investments programme will hit future results

Loblaw announced growth in Q3 but says its investments programme will hit future results

Canadian grocery retailer Loblaw has announced a rise in third-quarter sales and profits but expressed caution over the impact of IT and supply chain investments.

For the third quarter ending 8 October, EBITDA rose 10% over the same period in 2010 to C$639m (US$623.6m), while revenue rose to C$9.2bn, an increase of 2%. Net income was C$236, compared to C$197 in the same three months last year, operating income went from C$421m to C$389m, while the same-store sales growth was 1.3%.

Galen Weston, executive chairman of Loblaw, said the quarter was helped by "continued improvement in execution" but says investments will hit profitability going forward.

He said: "As our infrastructure programme progresses, we expect the related investments to negatively impact operating income."

The nine-month results showed that EBITDA rose from C$1.5bn to C$1.6bn for the same period last year, while operating income rose 4.5% to C$1.07bn. Net income was C$595, up on C%510, while revenue was flat at C$1bn.