Loblaw Reports Second Quarter 2017 Results
BRAMPTON, ON, July 26, 2017 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") today announced its unaudited financial results for the second quarter ended June 17, 2017. The Company's 2017 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(Open in a new tab).
"In a quarter characterized by continued price deflation, we delivered solid sales metrics and are pleased with our financial performance," said Galen G. Weston, Chairman and Chief Executive Officer, Loblaw Companies Limited.
"We plan to intensify our focus on cost reductions in this highly competitive market given incremental external pressures on our industry."
2017 SECOND QUARTER HIGHLIGHTS
The following highlights include the impacts of the consolidation of franchises, as set out in "Other Retail Business Matters."
Revenue was $11,079 million, an increase of $348 million, or 3.2%, compared to the second quarter of 2016.
Retail segment sales were $10,827 million, an increase of $333 million, or 3.2%, compared to the second quarter of 2016.
Same-store sales were positively impacted by the timing of Easter.
Food retail (Loblaw) same-store sales growth was 1.0%, excluding gas bar. Excluding the favourable impact of the timing of Easter, Food retail same-store sales were relatively flat.
Drug retail (Shoppers Drug Mart) same-store sales growth was 3.7%, with pharmacy same-store sales growth of 2.9% and front store same-store sales growth of 4.5%. Excluding the favourable impact of the timing of Easter, Drug retail same-store sales growth was approximately 2.9%, with pharmacy same-store sales growth of approximately 3.5% and front store same-store sales growth of approximately 2.3%.
Operating Income was $626 million, an increase of $109 million, or 21.1%, compared to the second quarter of 2016.
Adjusted EBITDA² was $985 million, an increase of $61 million, or 6.6%, compared to the second quarter of 2016.
Net earnings available to common shareholders of the Company were $358 million, an increase of $200 million, or 126.6%, compared to the second quarter of 2016. Diluted net earnings per common share were $0.89, an increase of $0.50, or 128.2%, compared to the second quarter of 2016. Diluted net earnings per common share growth is higher than adjusted diluted net earnings per common share² growth primarily due to the impacts of the fair value adjustment to the Trust Unit Liability and restructuring charges included in the prior year.
Adjusted net earnings available to common shareholders of the Company² were $445 million, an increase of $33 million, or 8.0%, compared to the second quarter of 2016. Adjusted diluted net earnings per common share² were $1.11, an increase of $0.10
, or 9.9%, compared to the second quarter of 2016.
The Company repurchased 3.4 million common shares at a cost of $260 million
Note: This is an excerpt from the full release. To view the complete document, please download the full Q2 2017 news release(Open in a new tab).
¹This 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.
²See "Non-GAAP Financial Measures" section of this News Release, which includes the reconciliation of such non-GAAP measures to the most directly comparable GAAP measures.
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