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Loblaw’s retail segment has reported sales of C$13.84bn ($10.01bn) in the first quarter of the fiscal year 2025 (Q1 FY25) - a 4.1% increase from C$13.29bn in the corresponding quarter of the previous year.
The food retail division, operating under the Loblaw banner, generated sales of C$9.79bn with same-store sales witnessing a 2.2% rise.
The drug retail sector, which includes Shoppers Drug Mart, saw sales amounting to C$4.05bn, and a same-store sales increment of 3.8%.
The pharmacy and healthcare services within this division experienced a robust same-store sales growth of 6.4%, while front store same-store sales were slightly up by 0.9%.
The company also highlighted a significant 17.4% surge in e-commerce sales during the quarter.
Operating income for Loblaw’s retail segment in Q1 FY25 reached C$840m, showing a 7.4% increase from C$782m in Q1 FY24.
Gross profit for the quarter stood at C$4.36bn, up by 3.7% from C$4.20bn in the same quarter of the previous year.
However, there was a slight decrease in the gross profit percentage by 10 basis points to 31.5%, mainly due to changes in the sales mix.
Earnings before income taxes for Loblaw's retail operations improved to C$678m from C$623m in Q1 FY24.
Looking forward to the rest of 2025, Loblaw anticipates that its financial results will reflect the inclusion of an additional week, the 53rd, which is projected to contribute approximately 2% to adjusted net earnings per common share growth.
Loblaw plans to continue investments in its store network and distribution centres with a net capital expenditure of C$1.9bn for the year.
This includes roughly C$2.2bn in gross capital investments offset by approximately C$300m from property disposals.
Loblaw Companies Limited president and chief executive officer Per Bank stated: “We will continue to support Canadian companies and brands, highlight Canadian-made products in our stores, and deliver value across our network. Our commitment to retail excellence is resonating with customers and allowed us to deliver consistent financial results.”
"Loblaw reports 4.1% sales growth and stable gross profit in Q1 FY25" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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