Loblaw Cos. Ltd. said Tuesday food price inflation helped power the company to a 73% profit increase in the first three months of 2009.
Canada’s largest supermarket operator said net earnings climbed to $109 million or 40 cents per share for the quarter ended March 28, up from a year-earlier profit of $63 million or 23 cents per share.
Quarterly sales rose to $6.7 billion, up 2.9% from $6.53 billion a year earlier. Sales at stores open a year or longer rose 2.1%.
Loblaw said strong food and drugstore sales were offset somewhat by a weaker performance from its gas bar operations, where lower prices offset a modest volume increase.
“Along with the rest of the food retail industry, our results have benefited from food price inflation,” said Galen Weston Jr., chairman of the company, and the marketing spokesperson who stars in the company’s President’s Choice advertising campaign.
“We remain cautious and prepared for continuing challenges through 2009, as inflation could unwind and economic conditions remain volatile.”
