Loblaw beats third-quarter profit expectations

Loblaw Companies Ltd. raised its dividend as its third-quarter profit and sales climbed higher compared with a year ago and topped expectations.

The grocery and drug store retailer says it will now pay a quarterly dividend of 33.5 cents per share, up from 31.5 cents per share.

The increased payment came as Loblaw reported a profit attributable to common shareholders of $342 million or 96 cents per diluted share for the quarter ended Oct. 3, up from $331 million or 90 cents per diluted share in the same quarter last year.

Revenue for what was a 16-week period totalled $15.67 billion, up from nearly $14.66 billion in the same quarter a year earlier. Food retail same-store sales gained 6.9% in the quarter, while drug retail same-store sales climbed 6.1%.

On an adjusted basis, Loblaw says it earned $464 million or $1.30 per diluted share, up from an adjusted profit of $458 million or $1.25 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.26 per share and $15.6 billion in revenue, according financial data firm Refinitiv.