Loblaw, Canada’s largest food retailer, saw second quarter profits tumble after the exclusion of one-time charges, the company reported today (28 July).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Operating income and basic net earnings for the period to 14 June were weaker than expected, as a result of cost cutting.
Sales in the second quarter of 2008 were C$7bn (US$6.9bn) compared to C$6.9bn in the same period in 2007, an increase of 1.5%.
Net earnings for the Toronto-based company were C$140m, a 17.6% increase compared to $119m in the same period last year. EBITDA of C$398m represented an 11.8% increase over last year.
The quarter included restructuring costs of C$1m compared to C$73m in 2007. The effect on basic net earnings per common share was C$0.18.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company said it was behind in its plans for operating as an effective selling organisation.
Galen G. Weston, Loblaw executive chairman said: “This is reflected in our second quarter sales performance. However, we remain on track with our cost reduction efforts. We are also beginning to see positive results from our recently announced five areas of immediate focus of our turnaround strategy. While we are satisfied with our margin performance, we are continuing our investments in foundational infrastructure, offer enhancement, and value for our customers.”
