Loblaw boosts profit 25% to $473 millon, sales rise

Loblaw Cos. Ltd., Canada's biggest supermarket operator, checked out of 2000 fiscal year with a 25 per cent increase in profit on a 7 per cent rise in sales.

The Toronto Star
February 23, 2001

Loblaw boosts profit 25% to $473 million, sales rise

Loblaw Cos. Ltd., Canada's biggest supermarket operator, checked out of 2000 fiscal year with a 25 per cent increase in profit on a 7 per cent rise in sales.

Loblaw said it had net earnings in 2000 of $473 million, or $1.71 per share, on revenue of $20.12 billion, up from $376 million on $18.78 billion in 1999.

“All divisions performed well with good growth in all regions and banners across Canada,” the company stated.

Fourth-quarter net earnings per share improved 28 per cent to 68 cents, as sales in the quarter rose to $4.9 billion, up 6 per cent from year-earlier levels, which had been boosted by pre-millennium stockpiling by shoppers.

“The strategy of significant annual capital investment has proven successful as reflected in the almost 5 per cent same-store sales growth in 2000,” yesterday's corporate statement added. “A further nearly $1 billion has been invested in capital during the current year.”

It concluded: “With Provigo and Agora now largely integrated into the business, sales and earnings growth are expected to increase at the pre-acquisition rates in 2001 and beyond.”

The financial results were released just after stock markets closed, with Loblaw shares down $1.70 in Toronto at $46.40 - 27 times the past year's per-share earnings.


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