Loblaw Companies Ltd. reported a better quarterly profit than expected, in part due to Shoppers Drug Mart adding to its numbers.
Loblaw experienced a revenue growth of 36 per cent to $13.6 billion, of which Shoppers contributed about nine per cent. Same-store earnings rose by 2.5 per cent at Shoppers over last year, while Loblaw’s number grew by 1.6 per cent in the same category.
While Loblaw saved $44 million in the quarter due to its acquisition of Shoppers Drug Mart, it faced costs amounting to $46 million for restructuring and reorganization. The company’s net earnings dropped to $142 million from $150 million.
