📋 Tender Overview
Loblaw Companies Limited TSX L Loblaw or the Company announced its unaudited financial results for the third quarter ended October 5 2019. The Companys 2019 Third Quarter Report to Shareholders will be available in the Investors section of the Companys website at loblaw.ca and will be filed on SEDAR and available at sedar.com.With a focus on improving sales performance we delivered solid financial results in the quarter said Galen G. Weston Executive Chairman Loblaw Companies Limited. We continue to accelerate strategic investments evolving the customer experience to deliver long-term shareholder value.2019 THIRD QUARTER HIGHLIGHTSUnless otherwise indicated the following highlights represent the Companys results from Continuing Operations and include the impacts of spin-out related incremental depreciation the implementation of IFRS 16 Leases IFRS 16 and the consolidation of franchises. See Other Business Matters of this News Release for more information on the spin-out related incremental depreciation and the implementation of IFRS 16.Revenue was 14655 million. When compared to the third quarter of 2018 this represented an increase of 336 million or 2.3.Retail segment sales were 14420 million. When compared to the third quarter of 2018 this represented an increase of 315 million or 2.2.Food retail Loblaw same-store sales growth was 0.1. Food retail same-store sales growth was approximately 1.0 after excluding the unfavourable impact of the timing of Thanksgiving.Drug retail Shoppers Drug Mart same-store sales growth was 4.1 with pharmacy same-store sales growth of 5.3 and front store same-store sales growth of 3.1. The timing of Thanksgiving had a nominal impact on same-store sales growth for Drug retail in the third quarter of 2019.Operating income was 690 million. When compared to the third quarter of 2018 this represented an increase of 98 million or 16.6.Operating income included the year-over-year favourable impact of the implementation of IFRS 16 of approximately 104 million and the unfavourable impact of spin-out related incremental depreciation of approximately 28 million. Normalized for these impacts operating income increased by 22 million or 3.7.Adjusted EBITDA2 was 1492 million. When compared to the third quarter of 2018 this represented an increase of 432 million or 40.8.Adjusted EBITDA2 included the year-over-year favourable impact of the implementation of IFRS 16 of 382 million. Normalized for this impact adjusted EBITDA2 increased by 50 million or 4.7.Net earnings available to common shareholders of the Company from Continuing Operations were 331 million. When compared to the third quarter of 2018 this represented an increase of 357 million. Diluted net earnings per common share was 0.90. When compared to the third quarter of 2018 this represented an increase of 0.97.Adjusted net earnings available to common shareholders of the Company2 from Continuing Operations were 458 million. When compared to the third quarter of 2018 this represented a decrease of 8 million. Normalized for the year-over-year impact of the spin-out related incremental depreciation of approximately 21 million and IFRS 16 of approximately 2 million adjusted net earnings available to common shareholders of the Company2 increased by 15 million or 3.2.Adjusted diluted net earnings from Continuing Operations per common share2 were 1.25. When compared to the third quarter of 2018 this represented an increase of 0.01 or 0.8. Normalized for the year-over-year impact of the spin-out related incremental depreciation of approximately 0.06 per common share adjusted diluted net earnings per common share2 was 1.31. This represented an increase of approximately 5.6 or 0.07 per common share. IFRS 16 had a nominal impact on net earnings per share in the third quarter of 2019.In the third quarter of 2019 the Company repurchased 4.3 million common shares at a cost of 309 million.In the third quarter of 2019 the Company invested 397 million in capital expenditures and generated 186 million of free cash flow2.
