Loblaw Q2 profit plunges on pandemic costs despite surging revenues
Loblaw Companies Ltd. says its net income plunged in the second quarter despite surging revenues because of COVID-19 related costs including a temporary pay boost for employees.
Canada's largest grocer says its earnings attributable to shareholders fell 41 per cent to $169 million or 47 cents per diluted share from $286 million or 77 cents per share a year earlier.
Excluding one-time items, adjusted profits were $266 million or 74 cents per share, compared with $373 million or $1.01 per share in the prior year.
Revenues for the three months ended June 13 increased 7.4 per cent to nearly $12 billion, from $11.1 billion in the second quarter of 2019.
Loblaw was expected to report 71 cents per share in adjusted earnings on $11.9 billion in revenues, according to financial markets data firm Refinitiv.
The company says demand shifted during the quarter towards conventional store formats with the market division's same-store sales increasing 18.8 per cent and the discount division up 4.9 per cent, while same-store drug division sales declined 1.1 per cent.
It spent $282 million during the quarter on safety measures for staff and customers with about $180 million in temporary pay premiums which included a one-time bonus for store and distribution centre colleagues of $25 million.
This report by The Canadian Press was first published July 23, 2020.
- Loblaw profit and sales up as customers stockpiled supplies
- Cineplex loses $178.4M in first quarter as revenues plunge with theatre closures
- COVID-19 takes a big bite out of Highway 407 traffic, revenues and profits
- Cineplex saw 91 per cent fewer moviegoers this summer, sales drop 85 per cent
- Indigo loses $171 million in Q4 after taking large impairment, tax charges
- Male shot in Mississauga, taken to trauma centre
- Police advising motorists to watch out for rogue cow in Milton
- One arrested after loaded firearm found in Brampton
- Mangoes recalled from stores in Mississauga, Brampton and Ontario due to Hepatitis A
- This popular all-day breakfast and lunch spot is coming to Brampton