By Adriano Marchese


Loblaw Cos. Ltd. on Wednesday reported a 29% rise in profit and better-than-expected revenue growth in the third quarter as Canadians grapple with rising food prices across the country.

The Canadian retail grocery and pharmacy company reported net earnings of 556 million Canadian dollars ($418.6 million), or C$1.69 a share, compared with the prior-year period where it reported net earnings of C$431 million, or C$1.27 a share.

On an adjusted basis, earnings rose to C$2.01 a share. According to FactSet, analysts were expecting C$1.96 a share.

Sales rose jumped 8.3% to C$17.39 billion from C$16.05 billion, while analysts expected a rise to C$16.83 billion. Same-store sales at its food retail segment rose 6.9% in the quarter compared with 0.2% a year earlier, while its drug retail unit saw same-store sales rise 7.7% from 4.4%.

In the period, the consumer price index for food purchased from stores was 10.7%, a far cry from last year's 2.6% at this time. In September alone, the cost of food purchased at stores rose 11.4%.

Loblaw noted that food retail basket size decreased while traffic inside its stores increased.

The company said it has made efforts to moderate the cost increases and provide value to its customers through its points program and promotions.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

11-16-22 0725ET