Loblaw’s second quarter profit down after agreeing to settle price-fixing lawsuit

Grocery and drugstore retailer Loblaw Cos. Ltd. reported its second-quarter profit decreased compared with a year ago.

The parent company of Loblaws and Shoppers Drug Mart says it earned a profit available to common shareholders of $457 million or $1.48 per diluted share for the quarter ended June 15.

The result was down from $508 million or $1.58 per diluted share in the same quarter last year, which Loblaw attributed primarily to charges related to the settlement of class action lawsuits. On Thursday, the grocer announced it and parent company George Weston Ltd. have agreed to pay $500-million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.

Revenue for the quarter totalled $13.95 billion, up from $13.74 billion a year earlier.

Food retail same-stores sales rose by 0.2 per cent, while drug retail same-store sales increased by 1.5 per cent, with front store same-store sales down 2.4 per cent and pharmacy and health-care services same-store sales up 5.4 per cent.

On an adjusted basis, Loblaw says it earned $2.15 per diluted share in its latest quarter, up from an adjusted profit of $1.94 per diluted share a year earlier.

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This report by The Canadian Press was first published July 25, 2024.

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The Canadian Press