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%.
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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.
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