Loblaw Companies sees net profit grow in third quarter

Tue Nov 17, 8:37 AM
The Canadian Press

By The Canadian Press

BRAMPTON, Ont. - Loblaw Companies Limited (TSX: L.TO) says its earnings benefited from cost containment and supply chain efficiencies, allowing it to post an increased year-over-year-profit for the third quarter.

Canada's largest food distributor reports net income of $189 million or 69 cents per share for the quarter ended October 10 .That was up from year-ago profit of $157 million or 57 cents per share.

Loblaw says its incurred an incremental cost of $25 million related to an investment in information technology and supply chain which negatively impacted its net earnings.

Revenues totalled $9.47 billion for the quarter, compared to 9.49 billion last year.

Loblaw says its sales were negatively impacted by the sale of its food service business in the fourth quarter of 2008.

It added that earnings were also impacted by challenges faced by decreasing inflation, competitive intensity and ongoing renovation and infrastructure programs.