By The Canadian Press
BRAMPTON, Ont. - Loblaw Companies Ltd. (
TSX: T.L) says it made $178 million in net earnings in the second quarter, up from $156 million in the same period a year ago.
The retailing company's basic net earnings per common share rose 14.5 per cent in the quarter to 63 cents, compared with 55 cents in the second quarter of 2012.
The profit was about five cents per share better than a consensus estimate compiled by Thomson Reuters.
Revenue for the quarter was $7.5 billion, an increase of two per cent over the second quarter of 2012.
Loblaw says same-store sales growth was 1.1 per cent overall and one per cent excluding gas bars. Sales growth in food was modest, drugstore sales were flat but sales growth in gas bars and apparel was strong.
Loblaw's operating income for the quarter increased by $32 million due to an increase in retail income of $19 million and a $13 million gain in its financial services sector.
Operating income included an $8 million charge related to the transition of some Ontario conventional stores to more cost effective operating terms under collective agreements.
Prior to the end of the quarter, Loblaw agreed to acquire Shoppers Drug Mart Corp. approximately $12.4 billion. Loblaw expects the transaction to be completed within six to seven months, contingent on various approvals.
Loblaw chairman Galen G. Weston said the recent successful IPO launch of Choice Properties REIT and the deal with Shoppers Drug Mart "unlocked significant value for shareholders, and established an attractive new growth platform for Loblaw."
Weston said combining Loblaw and Shoppers Drug Mart will provide an "excellent strategic complement to our existing assets, and setting the stage for further shareholder value creation."