Loblaw Companies Limited, the parent company of Loblaws and Shoppers Drug Mart, reported a decline in net earnings for the fourth quarter, despite a rise in revenue. The company announced net earnings available to common shareholders of $462 million, or $1.52 per diluted share. This marks a decrease from $541 million, or $1.72 per diluted share, recorded in the same quarter last year. The financial results were impacted by a non-cash charge related to its PC Optimum loyalty program.
The fourth quarter saw a rise in revenue to $14.9 billion, up from $14.5 billion in the previous year. Food retail same-store sales increased by 2.5 percent, though this figure drops to approximately 1.5 percent when adjusted for the timing of Thanksgiving. In contrast, drug retail same-store sales experienced a modest uptick of 1.3 percent. Notably, pharmacy and health care services same-store sales climbed by an impressive 6.3 percent, while front store same-store sales saw a decrease of 3.1 percent.
Loblaw's non-cash charge was attributed to increased member participation and higher redemption rates within its PC Optimum loyalty program. This charge significantly affected the company's net earnings for the quarter. However, on an adjusted basis, Loblaw reported earnings of $2.20 per diluted share, an improvement from $2 per diluted share in the prior year.
