CANADA: One-off items help Loblaw Q4 profits
Loblaw Cos., the Canadian retailer, has posted a jump in fourth-quarter earnings, helped by lower restructuring and stock compensation charges but also boosted by rising same-store sales.
The company yesterday (18 February) booked net earnings or C$188m (US$150.3m), a more than four-fold jump of the C$40m filed last year.
Same-store sales climbed 10.6%, driving an 11.2% rise in group turnover to C$7.75bn, but Loblaw said lower one-off costs, the disposal of a foodservice business and an extra selling week had also boosted earnings.
Operating income more than doubled during the fourth quarter, rising from C$134m a year earlier to C$317m.
Loblaw benefited from income of C$8m due to lower than expected restructuring costs, which had cost the company C$36m during the fourth quarter of 2007.
Loblaw's operating income was also helped by income of C$17m due to stock-0based compensation during the fourth quarter of 12008, During the last three months of 2007, Loblaw incurred a charge of C$52m.
The retailer also gained C$22m from the sale of its foodservice business during the last three months of 2008.
Nevertheless, Loblaw said that even after accounting for the extra selling week, and after excluding the one-off items, operating income had "improved" during the fourth quarter of 2008.
"Our fourth quarter performance demonstrated that we are continuing to edge forward," said Loblaw executive chairman Galen Weston. "However, given the unpredictable economy and tough competitive environment, we remain cautious and are prepared for a challenging 2009."
Over the whole of 2008, Loblaw saw same-store sales rise 4.2%, helping turnover climb 4.8% to C$30.8bn. Operating income, helped by one-off items, rose 42.1% to C$1.05bn; net earnings jumped 65.2% to C$545m.
Wal-Mart is expected to post sales at the low end of its guidance and flat earnings per share when the world's largest retailer delivers its second-quarter results tomorrow (13 August)....
The launch of Wal-Mart's sustainable product index has generated much comment, some positive and some not so complimentary. Ben Cooper examines the response from environmental commentators and campaig...
Wal-Mart has insisted it will remain a "house of brands", despite increasing private-label sales as US consumers look to economise....
The UK government laid out its vision for the food sector this week and insisted there needed to be a "radical rethink" of our the industry does business. The debate over GM was reignited, while the o...
Wal-Mart has played down the decline in same-store sales that it saw in the US during the second quarter and focused on increasing traffic and market share gains as signs of the health of its domestic...
Asda, the UK unit of Wal-Mart, today (13 August) said that it is attracting an increasing number of value-conscious consumers, despite posting a drop-off in sales growth during the second quarter....
Wal-Mart has today (13 August) posted better-than-expected second-quarter earnings, which came in at the high end of its guidance range....
Wal-Mart has revamped its brand logo in Brazil with the addition of a new tagline....
- Danone's Q1: four things to learn
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Nestle Q1 update: four things to learn
- Interview: Sir Kensington's on sale to Unilever
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- Tyson to buy burger-to-entree firm AdvancePierre
- PepsiCo affirms full-year target as Q1 hits mark
- Icelandic to sell Saucy Fish Co. owner Seachill