Canadian food manufacturer and grocer George Weston has recorded a decline in first-half profits thanks to costs from retail division Loblaw.
In the six months ended 16 June, net profit dropped 7.1% to C$367m (US$366.4m) as higher costs dragged operating profit from Loblaw down 18.5% to C$525m. George Weston’s operating profit slid 14.7% C$597m.
However, net sales edged up 1.2% to C$14.85bn amid price increases on certain products.
George Weston reiterated that it expects its full-year results to be lower than in 2011 due to costs at its Loblaw division.
“For the full year 2012, George Weston Limited anticipates adjusted basic net earnings per common share to be down year-over-year, primarily due to the impact of the incremental costs and ongoing customer proposition investments at Loblaw,” the company said.