Loblaw Companies Ltd. says fourth-quarter results hit by PC Optimum costs

BRAMPTON, Ont. — Loblaw Companies Ltd. reported a drop in its fourth-quarter profit compared with a year ago, hit by costs related to the announcement of its PC Optimum loyalty rewards program.

The company merged the Shoppers Optimum and PC Plus programs this year under the PC Optimum brand.

The retailer, which includes Loblaws and Shoppers Drug Mart, says its profit available to common shareholders totalled $19 million or five cents per share for the quarter. That compared with a profit of $201 million or 50 cents per share in the final quarter of 2016.

On an adjusted basis, Loblaw says its earnings available to common shareholders totalled $441 million or $1.13 per share, up from $393 million or 97 cents per share in the fourth quarter of 2016.

Analysts had expected an adjusted profit of $1.11 per share, according to Thomson Reuters.

Revenue for the 12-week period fell to $11.03 billion compared with $11.13 billion a year earlier due to the sale of the company’s gas bar operations.

Food retail same-store sales were up 0.5 per cent, excluding gas bar operations, while drug retail same-store sales increased 3.6 per cent.

The company had warned in November that it expects 2018 “will be a very difficult year” as the Canadian grocery industry faces pressures from multiple fronts, including discount and online retailers, and minimum wage increases in some provinces.

At the time, the company announced it would close 22 stores and launch home delivery in Toronto and Vancouver.

Loblaw has been in the public spotlight recently since admitting the company, along with its parent George Weston Ltd., participated in an alleged industry-wide bread price-fixing scheme for more than a decade.

The two companies tipped off the Competition Bureau and received immunity from criminal proceedings in return.

Companies in this story: (TSX:L, TSX:WN)

Just Posted

Photos: Children enjoy petting animals near Red Deer Sunday

Children and families learned about various animals and birds at a petting… Continue reading

Search for missing Tofino boaters scaled back, handed over to RCMP

TOFINO, B.C. — Jae Valentine woke to the sound of wolves howling… Continue reading

Get ready for the ‘internet of cows’: Farmers use technology to shake up agriculture

MONTREAL — Get ready for the “internet of cows.” Generations of farmers… Continue reading

WATCH: Red Deer cadets conclude year of learning

After a year of hard work, Red Deer’s local Air and Army… Continue reading

WATCH: Central Alberta High School Soccer League champs crowned

Lindsay Thurber girls’ team and Notre Dame boys’ team won Saturday at Edgar Park Field in Red Deer

5 dead as SUV chased by Border Patrol crashes in South Texas

BIG WELLS, Texas — At least five people were killed and several… Continue reading

Ramifications of a trade war: an expert look at the numbers for Canada

OTTAWA — A new analysis of escalating trade disputes involving the United… Continue reading

Deliberate spill: study launched to test crude and bitumen impact on lake life

KENORA, Ont. — Researchers were in northwestern Ontario over the weekend spilling… Continue reading

Two-spirit N.B. First Nation chief says his election points to progress

FREDERICTON — The new leader of a New Brunswick First Nation said… Continue reading

Google diversity report: Black women make up only 1.2 percent of its US workforce

Google released its annual workforce diversity report Thursday, marking only modest changes… Continue reading

Brazil held to 1-1 draw by Switzerland at World Cup

ROSTOV-ON-DON, Russia — Brazil joined the list of big teams struggling to… Continue reading

Canada’s Auger-Aliassime wins Sopra Steria title for 2nd straight year

LYON, France — Canadian Felix Auger-Aliassime defended his ATP Challenger Sopra Steria… Continue reading

Police: Taxi driver who hit 8 Moscow pedestrians fell asleep

MOSCOW — The suspect in a taxi crash near Red Square that… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month