BRAMPTON, ON - In the company’s Q4 and Fiscal Year 2015 financial report, Loblaw Companies has shown its shareholders both increased revenue and increased retail segment sales amid the increasingly competitive retail grocery market.

Galen G. Weston, President and Executive Chairman, Loblaw Companies

“I am pleased to report that we continued to deliver against our financial plan in the fourth quarter and, on a comparable basis, we delivered positive same-store sales and stable margins, achieved growth in operating earnings, and our strong balance sheet allowed us to return capital to our shareholders through share repurchases,” said Galen G. Weston, Executive Chairman and President, Loblaw Companies Limited.

During its fourth quarter, Loblaw rose its revenue 2.3% over Q4 2014 to reach $10.87 billion, and rose its retail segment sales by 2.2% to reach  $10.6  billion, an increase of 2.2% compared to the fourth quarter of 2014. Growth for food retail same-store sales at its Loblaw banner was also up 3.1%.

Despite its continued increases in some areas, net earnings for the company this quarter were down to $128 million ($0.31 per common share), a decrease of $67 million ($0.16 per common share) compared to 2014. Loblaw commented the lower profit was largely because of the write-down of drug retail assets that are being held for sale, according to CTV News, as well as costs for switching some grocery stores to more cost-effective labour agreements.

Also announced at the time of the report, Weston confirmed in a call with investors that the company will be further expanding its "Click & Collect" grocery pickup program beyond its current 39 locations.

Additional highlights in Loblaw’s Q4 and Fiscal Year 2015 financial report include the following:

• Adjusted EBITDA(2) was $881 million, an increase of $2 million compared to the fourth quarter of 2014.
• Food retail (Loblaw) same-store sales growth was 3.1%, excluding gas bar and the negative impact of a change in distribution model by a tobacco supplier.
• Drug retail (Shoppers Drug Mart) same-store sales growth was 5.0%, with same-store pharmacy sales increasing by 4.2% and same-store front store sales increasing by 5.7%.
• Adjusted net earnings available to common shareholders of the Company were $363 million, an increase of 5.5% compared to the fourth quarter of 2014.
• Net earnings available to common shareholders of the Company were $128 million, a decrease of 34.4% compared to the fourth quarter of 2014.

Loblaw’s stock has remained fairly flat since the announcement of the report.

Keep reading AndNowUKnow for more on what's to come in the retail grocery landscape.

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