Loblaw Companies (L) announced that it is raising its quarterly dividend by 11% after the
grocery and drugstore retailer reported first quarter profits that were 44% higher than a year
earlier.
The Toronto-based company reported that its revenue for the quarter totalled $12.26 billion, up
3.3% from $11.87 billion in the same quarter last year. Profit available to common shareholders
amounted to $1.30 per diluted share, up 44% from $0.90 cents per diluted share a year earlier.
The company said that, going forward, it will pay a quarterly dividend of 40.5 cents per share, up
11% from 36.5 cents per share.
Loblaw’s drug stores, which include Shoppers Drug Mart and Pharmaprix, recorded strong front-
store and prescription sales. Same-store sales at the company's pharmacies grew 5.2%,
including prescription sales that were up 6.8% and front store sales that rose 3.6%.
Food retail same-store sales rose 2.1% in the first quarter, growth that the company attributed to
higher than normal eat-at-home levels.
