![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Loblaw Companies Limited | TSX:L | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.40 | -0.24% | 168.88 | 168.58 | 169.33 | 170.01 | 168.00 | 169.94 | 356,703 | 21:14:57 |
BRAMPTON, ON, Nov. 12, 2020 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") announced today its unaudited financial results for the third quarter ended October 3, 2020. The Company's 2020 Third Quarter Report to Shareholders will be available in the Investors section of the Company's website at loblaw.ca and will be filed on SEDAR and available at sedar.com.
"Loblaw delivered strong operating performance in the quarter, while investing in providing exceptional value, safety and convenience," said Galen Weston, Executive Chairman, Loblaw Companies Limited. "We continued to build for the future, expanding our digital network and leveraging our PC OptimumTM loyalty program to create even more value for Canadian families."
The COVID-19 pandemic continued to impact the Company's operations in the quarter, positively impacting sales in the Food Retail business, supported by significant investments to ensure the safety and security of customers and colleagues. Loblaw continued to make investments to enhance the overall value proposition for consumers, maintaining its promotional intensity through the pandemic to retain its share gains in conventional banners and further improve its positioning in discount banners.
Food Retail same-store sales continued at elevated levels, growing by 6.9% in the quarter, with the Company's Market division delivering strong growth of 9.7% and the Discount division delivering 4.7% growth. Drug Retail same-store sales also experienced growth in the quarter, growing by 6.1%, with pharmacy delivering strong growth of 10.3% and front store sales growing by 2.4%. The Company invested approximately $85 million in COVID-19 related costs in the quarter primarily to ensure the safety and security of customers and colleagues.
The COVID-19 pandemic has accelerated certain longer-term trends, enabling the Company to advance its strategic growth areas of Everyday Digital, Connected Healthcare, and Payments and Rewards. The Company's investments in its Everyday Digital platforms enable it to offer Canadians a choice of shopping in-store or online with either home delivery or convenient pickup locations. The Company's e-commerce sales grew by 175% in the third quarter, across the Company's grocery, pharmacy, and apparel e-commerce platforms. The platform was expanded in the quarter to include front-store items from Shoppers Drug Mart and Pharmaprix pharmacies.
In September, the Company made two important announcements in its strategic growth areas of Payments and Rewards and Connected Health. The Company launched the PC MoneyTM Account, a simple no-fee way to do everyday banking, turning the act of paying bills and shopping into a way to receive PC Optimum rewards. As it continues to build out its Connected Health strategy, the Company also announced an investment in Maple Corporation and the launch of a PC Health app. Together, these two initiatives form part of the Company's next generation digital health platform that will provide Canadians with a new, personalized healthcare experience by leveraging the power of Loblaw's existing national healthcare network, extensive professional care services and world-class loyalty program to deliver a personalized healthcare solution for Canadians.
2020 THIRD QUARTER HIGHLIGHTS
Unless otherwise indicated, the following highlights include the impacts of the consolidation of franchises and COVID-19.
See "News Release Endnotes" at the end of this News Release. |
CONSOLIDATED RESULTS OF OPERATIONS
Unless otherwise indicated, all financial information includes the impacts of the consolidation of franchises and COVID-19.
For the periods ended October 3, 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
(millions of Canadian dollars except | (16 weeks) | (16 weeks) | $ Change | % Change | (40 weeks) | (40 weeks) | $ Change | % Change | |||||||
Revenue | $ | 15,671 | $ | 14,655 | $ | 1,016 | 6.9% | $ | 39,428 | $ | 36,447 | $ | 2,981 | 8.2% | |
Operating income | 718 | 690 | 28 | 4.1% | 1,663 | 1,729 | (66) | (3.8)% | |||||||
Adjusted EBITDA(2) | 1,524 | 1,492 | 32 | 2.1% | 3,709 | 3,707 | 2 | 0.1% | |||||||
Adjusted EBITDA margin(2) | 9.7% | 10.2% | 9.4% | 10.2% | |||||||||||
Net earnings attributable to | |||||||||||||||
shareholders of the | |||||||||||||||
Company | $ | 345 | $ | 334 | $ | 11 | 3.3% | $ | 760 | $ | 824 | $ | (64) | (7.8)% | |
Net earnings available to | |||||||||||||||
common shareholders of the | |||||||||||||||
Company(i) | 342 | 331 | 11 | 3.3% | 751 | 815 | (64) | (7.9)% | |||||||
Adjusted net earnings available | |||||||||||||||
to common shareholders of the | |||||||||||||||
Company(2) | 464 | 458 | 6 | 1.3% | 1,082 | 1,121 | (39) | (3.5)% | |||||||
Diluted net earnings per | |||||||||||||||
common share ($) | $ | 0.96 | $ | 0.90 | $ | 0.06 | 6.7% | $ | 2.09 | $ | 2.20 | $ | (0.11) | (5.0)% | |
Adjusted diluted net earnings per | |||||||||||||||
common share(2) ($) | $ | 1.30 | $ | 1.25 | $ | 0.05 | 4.0% | $ | 3.01 | $ | 3.03 | $ | (0.02) | (0.7)% | |
Diluted weighted average | |||||||||||||||
common shares outstanding | |||||||||||||||
(in millions) | 358.0 | 366.2 | 359.5 | 369.7 | |||||||||||
(i) | Net earnings available to common shareholders of the Company are net earnings attributable to shareholders of the Company net of dividends declared on the Company's Second Preferred Shares, Series B. |
REPORTABLE OPERATING SEGMENTS
The Company has two reportable operating segments (with all material operations carried out in Canada):
2020 | 2019 | |||||||||||||||
(16 weeks) | (16 weeks) | |||||||||||||||
For the periods ended October 3, 2020 and October 5, 2019 (millions of Canadian dollars) | Retail | Financial Services | Eliminations(i) | Total | Retail | Financial | Eliminations(i) | Total | ||||||||
Revenue | $ | 15,464 | $ | 278 | $ | (71) | $ | 15,671 | $ | 14,420 | $ | 309 | $ | (74) | $ | 14,655 |
Adjusted gross profit(2) | $ | 4,534 | $ | 226 | $ | (71) | $ | 4,689 | $ | 4,262 | $ | 262 | $ | (74) | $ | 4,450 |
Adjusted gross profit %(2) | 29.3% | 81.3% | —% | 29.9% | 29.6% | 84.8% | —% | 30.4% | ||||||||
Operating income | $ | 674 | $ | 44 | $ | — | $ | 718 | $ | 655 | $ | 35 | $ | — | $ | 690 |
Net interest expense and other financing charges | 205 | 23 | — | 228 | 203 | 20 | — | 223 | ||||||||
Earnings before income taxes | $ | 469 | $ | 21 | $ | — | $ | 490 | $ | 452 | $ | 15 | $ | — | $ | 467 |
Depreciation and amortization | $ | 789 | $ | 6 | $ | — | $ | 795 | $ | 771 | $ | 4 | $ | — | $ | 775 |
Adjusted EBITDA(2) | 1,474 | 50 | — | 1,524 | 1,452 | 40 | — | 1,492 | ||||||||
Adjusted EBITDA margin(2) | 9.5% | N/A | —% | 9.7% | 10.1% | N/A | —% | 10.2% | ||||||||
(i) | Eliminations include the reclassification of revenue related to President's Choice Financial Mastercard® loyalty awards in the Financial Services segment. |
2020 | 2019 | |||||||||||||||
(40 weeks) | (40 weeks) | |||||||||||||||
For the periods ended October 3, 2020 and October 5, 2019 (millions of Canadian dollars) | Retail | Financial | Eliminations(i) | Total | Retail | Financial | Eliminations(i) | Total | ||||||||
Revenue | $ | 38,816 | $ | 777 | $ | (165) | $ | 39,428 | $ | 35,778 | $ | 859 | $ | (190) | $ | 36,447 |
Adjusted gross profit(2) | $ | 11,468 | $ | 678 | $ | (165) | $ | 11,981 | $ | 10,622 | $ | 742 | $ | (190) | $ | 11,174 |
Adjusted gross profit %(2) | 29.5% | 87.3% | —% | 30.4% | 29.7% | 86.4% | —% | 30.7% | ||||||||
Operating income | $ | 1,582 | $ | 81 | $ | — | $ | 1,663 | $ | 1,602 | $ | 127 | $ | — | $ | 1,729 |
Net interest expense and other financing charges | 509 | 67 | — | 576 | 511 | 60 | — | 571 | ||||||||
Earnings before income taxes | $ | 1,073 | $ | 14 | $ | — | $ | 1,087 | $ | 1,091 | $ | 67 | $ | — | $ | 1,158 |
Depreciation and amortization | $ | 1,971 | $ | 16 | $ | — | $ | 1,987 | $ | 1,921 | $ | 14 | $ | — | $ | 1,935 |
Adjusted EBITDA(2) | 3,612 | 97 | — | 3,709 | 3,565 | 142 | — | 3,707 | ||||||||
Adjusted EBITDA margin(2) | 9.3% | N/A | —% | 9.4% | 10.0% | N/A | —% | 10.2% | ||||||||
(i) | Eliminations include the reclassification of revenue related to President's Choice Financial Mastercard® loyalty awards in the Financial Services segment. |
RETAIL SEGMENT
Unless otherwise indicated, the following financial information includes the impacts of the consolidation of franchises and COVID-19.
FINANCIAL SERVICES SEGMENT
COVID-19 UPDATE
General
The COVID-19 pandemic had a significant impact on our colleagues, customers, suppliers and other stakeholders in the third quarter. As disclosed previously, starting in March, the Company reacted quickly to changing circumstances by ramping up investments in various areas.
In the four weeks following the end of the third quarter, the Company observed continued sales volatility and changes in sales mix as the pandemic impacted consumer behaviour. Food retail same-store sales trends and COVID-19 related costs were in line with third quarter results, however, Drug retail same-store sales have decelerated when compared to the third quarter.
In light of the uncertainty surrounding the duration and severity of the pandemic, it is not possible to reliably estimate the length and severity of COVID-19 related impacts on the financial results and operations of the Company. As announced on April 9, 2020, the Company has withdrawn its 2020 Outlook that is contained in its Management's Discussion and Analysis ("MD&A") for the year ended December 28, 2019.
Liquidity
The Company's liquidity position is supported by a strong balance sheet and the ability to generate significant cash flow from its operations. In September 2020, DBRS Morningstar upgraded Loblaw's credit rating from BBB to BBB (high). Subsequent to the end of the third quarter of 2020, the Company extended the maturity of its existing $1 billion credit facility to October 7, 2023. As at the end of the third quarter, the Company's consolidated cash and short-term investments balance was $1.8 billion. The aggregate available liquidity is approximately $3.8 billion including undrawn amounts under committed credit facilities. President's Choice Bank continues to maintain a level of liquidity well in excess of required regulatory minimums.
Risk Factor
For more information on the risks presented to the Company by the COVID-19 pandemic, please see Section 9, "Enterprise Risks and Risk Management" of the Company's MD&A for the quarter ended October 3, 2020.
DECLARATION OF DIVIDENDS
Subsequent to the end of the third quarter of 2020, the Board of Directors declared a quarterly dividend on Common Shares and Second Preferred Shares, Series B.
Common Shares | $0.335 per common share, payable on December 30, 2020 to shareholders of record on December 15, 2020 |
Second Preferred Shares, Series B | $0.33125 per share, payable on December 31, 2020 to shareholders of record on December 15, 2020 |
NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures as it believes these measures provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition.
Management uses these and other non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company excludes additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.
These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with GAAP.
For reconciliation to, and description of, the Company's non-GAAP financial measures and financial metrics, please refer to Section 11 "Non-GAAP Financial Measures" of the Company's 2020 Third Quarter Report to Shareholders.
FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of Information Technology systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Consolidated Results of Operations" Other Business Matters section and "COVID-19 Update" section of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "should" and similar expressions, as they relate to the Company and its management.
Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's expectation of operating and financial performance in 2020 is based on certain assumptions including assumptions about the COVID-19 pandemic, healthcare reform impacts, anticipated cost savings and operating efficiencies and anticipated benefits from strategic initiatives. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events, including the COVID-19 pandemic and as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 12 "Enterprise Risks and Risk Management" of the MD&A in the 2019 Annual Report and the Company's 2019 Annual Information Form (for the year ended December 28, 2019) as well as COVID-19 related risks that have been added to Section 9 "Enterprise Risks and Risk Management" of the Company's MD&A for the quarter ended October 3, 2020.
Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CORPORATE PROFILE
2019 Annual Report and 2020 Third Quarter Report to Shareholders
The Company's 2019 Annual Report and 2020 Third Quarter Report to Shareholders are available in the "Investors" section of the Company's website at loblaw.ca and on sedar.com.
Additional financial information has been filed electronically with various securities regulators in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR) and with the Office of the Superintendent of Financial Institutions (OSFI) as the primary regulator for the Company's subsidiary, President's Choice Bank. The Company holds an analyst call shortly following the release of its quarterly results. These calls are archived in the "Investors" section of the Company's website at loblaw.ca.
Conference Call and Webcast
Loblaw Companies Limited will host a conference call as well as an audio webcast on November 12, 2020 at 10:00 a.m. (ET).
To access via tele-conference, please dial (647) 427-7450 or (888) 231-8191. The playback will be made available approximately two hours after the event at (416) 849-0833 or (855) 859-2056, access code: 9959726. To access via audio webcast, please go to the "Investors" section of loblaw.ca. Pre-registration will be available.
Full details about the conference call and webcast are available on the Loblaw Companies Limited website at loblaw.ca.
News Release Endnotes | |
(1) | This News Release contains forward-looking information. See "Forward-Looking Statements" section of this News Release and the Company's 2020 Third Quarter Report to Shareholders for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with Loblaw Companies Limited's filings with securities regulators made from time to time, all of which can be found at sedar.com and at loblaw.ca. |
(2) | See Section 11 "Non-GAAP Financial Measures" of the Company's 2020 Third Quarter Report to Shareholders, which includes the reconciliation of such non-GAAP measures to the most directly comparable GAAP measures. |
(3) | To be read in conjunction with the "Forward-Looking Statements" section of this News Release and the Company's 2020 Third Quarter Report to Shareholders. |
SOURCE Loblaw Companies Limited
Copyright 2020 Canada NewsWire
1 Year Loblaw Companies Chart |
1 Month Loblaw Companies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions