Loblaw Companies (L) has reported that its profit rose 12% from a year earlier as grocery prices continue to climb higher across Canada.
The parent company of the Loblaw and Shoppers Drug Mart retail chains reported a profit of $621 million, or $1.95 per share, for the quarter ended Oct. 7.
That’s 12% higher than the profit of $556 million, or $1.69 per share, reported in the same quarter of 2022.
Loblaw’s revenue for the quarter totalled $18.27 billion, up 5% from $17.39 billion in the same quarter of last year.
The company said same-store sales at Loblaw rose 4.5% year-over-year and 4.6% at Shoppers Drug Mart from a year ago.
While grocery prices have come down across Canada, they continue to rise at a faster pace than headline inflation.
In September of this year, grocery prices across Canada rose 5.8% year-over-year after gaining 6.9% in August. That compares to an increase of 3.8% in total inflation during September.
Loblaw’s stock has increased 2% this year to trade at $123.03 per share.