Loblaw reports 10% increases for third quarter of 2015

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Loblaw Companies Limited has announced its unaudited financial results for the third quarter ending October 10, 2015. The company’s third quarter report will be available in the Investor Centre section of the company’s website at loblaw.ca and will be filed with SEDAR and available at sedar.com.
“In the third quarter, our business remained focused on delivering the best in food experience, best in health and beauty, operational excellence, and growth,” reported Galen G. Weston, President and Executive Chairman of Loblaw Companies Limited.

“While the grocery industry remained intensely competitive, and the regulatory environment in healthcare challenging, we maintained a stable trading platform, achieved incremental efficiencies and delivered planned synergies. Having reached our deleveraging target during the quarter, we are now in a position to accelerate our focus on returning capital to shareholders.”

2015 THIRD QUARTER HIGHLIGHTS
• Retail segment sales were $13,715 million, an increase of 2.5% compared to the third quarter of 2014.
• Food retail (Loblaw) same-store sales growth was 3.1%, excluding gas bar and the negative impact of a change in distribution model by a tobacco supplier; and
• Drug retail (Shoppers Drug Mart) same-store sales growth was 4.9%, with same-store pharmacy sales increasing by 3.5% and same-store front store sales increasing by 6.2% compared to the third quarter of 2014.
• Retail adjusted gross profit percentage(2) was 26.0%, flat compared to the third quarter of 2014.
• Adjusted EBITDA(2) was $1,022 million, an increase of 2.1% compared to the third quarter of 2014.
• Net earnings available to common shareholders of the Company were $166 million, an increase of 16.9% compared to the third quarter of 2014. Adjusted net earnings available to common shareholders of the Company(2) were $408 million, an increase of 10.0% compared to the third quarter of 2014.
• Basic net earnings per common share were $0.40, an increase of 17.6% compared to the third quarter of 2014. Adjusted basic net earnings per common share(2) were $0.99, an increase of 10.0%.
• The Company realized approximately $76 million of net synergies in the quarter compared to $44 million in the third quarter of 2014. Since the close of the acquisition of Shoppers Drug Mart, the Company has realized $222 million in annualized synergies (net of related costs). The Company continues to expect to achieve annualized synergies of $300 million (net of related costs) in the third year following the close of the acquisition.
• Adjusted debt(2) decreased by $527 million compared to the second quarter of 2015. The Company has now achieved its debt reduction target following the acquisition of Shoppers Drug Mart, with a cumulative reduction of $1,872 million. The Company’s adjusted debt(2) to rolling year adjusted EBITDA(2) was 2.5x as at October 10, 2015.

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