Loblaw Achieves its Synergy Target of $300 Million in the Second Quarter of 2016
BRAMPTON, ON, July 27, 2016 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") today announced its unaudited financial results for the second quarter ended June 18, 2016. The Company's 2016 Second Quarter Report to Shareholders will be available in the Investors section of the Company's website at loblaw.ca and will be filed with SEDAR and available at sedar.com. "Operating earnings grew in the second quarter of 2016, as we achieved improved same-store sales growth and maintained stable gross margins," said Galen G. Weston, Executive Chairman and President, Loblaw Companies Limited. "Sales performance in Drug Retail remained strong in the quarter. In an increasingly competitive Food Retail environment, our initiatives are beginning to put money back in the pockets of Canadians." 2016 SECOND QUARTER HIGHLIGHTS
Revenue was $10,731 million, an increase of $196 million, or 1.9%, compared to the second quarter of 2015.
Retail segment sales were $10,494 million, an increase of $176 million, or 1.7%, compared to the second quarter of 2015.
Food retail (Loblaw) same-store sales growth was 0.7%, excluding gas bar;
Drug retail (Shoppers Drug Mart) same-store sales growth was 4.0%, with same-store pharmacy sales increasing by 3.6% and same-store front store sales increasing by 4.3%; and
The timing of Easter had a negative impact of 1.0% in the second quarter on both Food retail same-store sales and Drug retail same-store sales.
Adjusted EBITDA(2) was $924 million, an increase of $67 million, or 7.8%, compared to the second quarter of 2015.
Adjusted net earnings available to common shareholders of the Company(2) were $412 million, an increase of $62 million, or 17.7%, compared to the second quarter of 2015. Adjusted diluted net earnings per common share(2) were $1.01, an increase of $0.17, or 20.2%, compared to the second quarter of 2015.
Net earnings available to common shareholders of the Company were $158 million, a decrease of $27 million, or 14.6%, compared to the second quarter of 2015. Diluted net earnings per common share were $0.39, a decrease of $0.05, or 11.4%, compared to the second quarter of 2015.
The Company realized approximately $83 million of net synergies in the quarter, an incremental $30 million compared to the second quarter of 2015. As a result, the Company has achieved its annualized synergies target of $300 million since the acquisition of Shoppers Drug Mart.
The Company repurchased 2.0 million shares for cancellation at a cost of $132 million.
Note: This is an excerpt from the full release. To view the complete document, please download the full Q2 2016 news release(Open in a new tab).
(1) This News Release contains forward-looking information. See "Forward-Looking Statements" section of this News Release for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with Loblaw Companies Limited's filings with securities regulators made from time to time, all of which can be found at sedar.com and at loblaw.ca. (2) See "Non-GAAP Financial Measures" section of this News Release.
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