Loblaw's Q4 benefits from Shoppers Drug Mart

BRAMPTON, Ontario — Loblaw’s fourth quarter net earnings more than doubled thanks in part to its acquisition of Shoppers Drug Mart.



“Our portfolio of businesses delivered strong performance this quarter,” stated Galen Weston, president and executive chairman of Loblaw.



During the quarter, Shoppers Drug Mart sales were Canadian $3 billion. On a same-store basis, Shoppers Drug Mart sales increased by 3.8%, with pharmacy same-store sales up 4.2% and front-end same-store sales up 3.6%.



The grocer also stated that it realized C$49 million of net synergies during the fourth quarter and expects to achieve annualized synergies of C$300 million in the third full year following the close of the acquisition of Shoppers Drug Mart.



During the quarter, retail segment sales at Loblaw increased 50.5% compared with the year-ago period. Excluding the impact of Shoppers Drug Mart and an extra week in the quarter, consolidated revenue increased by 1.9% compared with the year-ago period.



Net earnings totaled C$247 million compared with C$114 million in the year-ago period. The increase was primarily driven by a lift in operating income, partially offset by the increase in net interest expense and other financing charges and by the increase in an income tax expense.