By Adriano Marchese
Loblaw Cos. Ltd. Thursday reported a 40% fall in second-quarter profit despite higher revenue in the period, and said that Covid-19 related expenses negatively affected earnings.
The Brampton, Ontario-based food retailer company earned a profit of 172 million Canadian dollars, or C$0.47 a share, compared with C$289 million, or C$0.77, for the same period last year.
Sales rose 7.4% to C$11.96 billion.
The company's food retail segment had same-store sales growth of 10% in the quarter, while front-store same-store sales grew 3.3%.
"As expected, profit declined year over year in the quarter as the strong growth in sales was insufficient to overcome substantial Covid-19 related costs in the quarter," Executive Chairman Galen Weston said.
Loblaw said that it has invested C$282 million in Covid-19 related costs and that it continued to incur costs exiting the second quarter. It said costs were at a lower rate in the third quarter, reflecting more stability in store and in distribution center operations.
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