BRAMPTON, Ontario — Loblaw Cos. here on Wednesday said improved execution and cost controls drove a 19.8% gain in net earnings on a 2% sales gain during the third quarter, which ended Oct. 8.
However, ongoing infrastructure investments will likely lead to negative pressure on operating income in the months to come, Galen G., Weston, executive chairman, said in a statement.
Sales for the 16-week period totaled $9.5 billion (U.S.), with comparable sales increasing by 1.3% compared with the same period a year ago. Net income was $230 million, and EBITDA margin as a percent of sales increased 50 basis points to 6.6%. The company said its internal price inflation was flat during the quarter, although it experienced some "moderate" inflation overall.
Loblaw said it would step up investments during the fourth quarter, including $20 million toward its supply chain and as much as $30 million associated with transitioning conventional stores in Ontario.
