Loblaws continues to pile up record profits in the face of political criticism and public anger.
The company’s fourth-quarter net earnings available to common shareholders rose to $541-million or $1.72 per share, compared to $529-million or $1.62 per share in the same period the previous year which set a record.
Fourth-quarter revenue increased by 3.7 per cent to $14.5-billion.
For the full year, Loblaw’s revenue grew by 5.4 per cent last year, to $59.5-billion. Net earnings available to common shareholders grew by 9.4 per cent, to nearly $2.1-billion or $6.52 per share, compared to $1.9-billion or $5.75 per share in 2022.
Loblaws said its prices increased less than Statistics Canada’s measure of food prices, but the government data includes restaurant meals.
Just before it released its fourth quarter report, Loblaws announced it plans to open 40 new discount stores in the next 12 months and to add another 30 stores to the 24 already converted from Provigo to Maxi.
The House of Commons Agriculture Committee sent letters to Loblaws and Walmart last week, warning that if they fail to come on board voluntarily with a code of practice, it will “recommend that the federal and provincial governments adopt legislation to make it mandatory.”
Much of the code deals with supermarket bullying of suppliers, such aa unilaterally declaring it would reduce their invoices by two per cent. They did that twice.
That's what's been public; what goes on in private is more intimidating. Losing access to the shelves of any of the three largest supermarket chains would devastate many of Canada's most popular food processors.
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