By Adriano Marchese

Canadian food retailer Loblaw Cos. has seen its Covid-19-related costs fall in the first four weeks of the fourth quarter, which would put them on track to be the lowest since the second quarter of 2020.

Loblaw's Covid-19-related costs were C$19 million (US$15.1 million) in the third quarter, and it said that so far in the first four weeks of the fourth quarter it has spent around C$4 million.

If the trend continues, these costs could be around C$12 million for the 12-week quarter.

In the second quarter of 2020, the first quarter affected by the coronavirus pandemic, Loblaw invested C$282 million to protect and benefit staff and customers. Of that amount, C$180 million was related to temporary pay premium costs which included a one-time bonus for store and distribution center staff of C$25 million.

Since then, costs have been falling steadily as restrictions continued to loosen and vaccination rates increase.

In the second quarter of this year, costs were already declining from their peak, with spending at about C$70 million which included C$25 million of one-time bonuses and benefits for staff.

Prior to that, the company spent C$48 million in the first quarter of 2021, C$42 million in the fourth quarter of 2020, and C$85 million in the third quarter that year.

Along with lower costs in current period, the company said it expects adjusted net earnings per share growth to be in the low-to-mid 30% range in the fourth quarter. For the year-earlier quarter, the company reported adjusted net earnings of C$1.26 a share.

Loblaw said the forecast for the quarter is based on its year-to-date operating and financial performance as well as the momentum the company had exiting the third.

For the full year, the company said it continues to expect its core retail segment business will grow earnings faster than sales.

It said it also continues to expect to return capital to its shareholders, as well as invest C$1.2 billion in capital expenditures.

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

(END) Dow Jones Newswires

11-17-21 1052ET