Loblaws reports first-quarter sales of nearly $13 billion, up by six per cent from the same quarter last year.
But Statistics Canada reports food inflation rose by more than 10 per cent.
And Loblaws’ profit reporting is confusing because it says net adjusted earnings increased by 10 per cent, yet net earnings this year were $417 million compared with $437 million last year.
Loblaws notes that last year’s net earnings were increased by a court win of $11 million on a taxation challenge and said there were some other unusual factors that increased profits then.
Confusing, eh?
The company said shoppers are switching to its discount chains, such as No Frills and SuperStores which now account for 60 per cent of sales.
