Bulletin: Loblaw Cos. Ltd. Third-Quarter EBITDA Margins Remain Stable In Spite Of High Inflation

TORONTO (S&P Global Ratings) Nov. 16, 2022--S&P Global Ratings today said that Loblaw Cos. Ltd.'s (BBB/Stable/--) third-quarter results continue to demonstrate strong performance through 2022, despite high inflation. Despite double-digit food inflation in the quarter, Loblaw's retail gross profit and EBITDA margin were 30.8% and 10.6%, respectively, better than third-quarter 2021. We still expect Loblaw to exit the year with 2.0x-2.3x leverage (S&P Global Ratings' adjusted), reflecting the company's strong performance, notwithstanding the recent C$829 million Lifemark acquisition, and 2022 capital expenditure and share buyback programs in line with 2021. Loblaw food-retail same-store sales growth (SSSG) rose 6.9% for the third quarter, with the company's internal food inflation close to reported CPI for food at 10.7%. With food inflation ahead

...November 16, 2022 TORONTO (S&P Global Ratings) Nov. 16, 2022--S&P Global Ratings today said that Loblaw Cos. Ltd.'s (###/Stable/--) third-quarter results continue to demonstrate strong performance through 2022, despite high inflation. Despite double-digit food inflation in the quarter, Loblaw's retail gross profit and EBITDA margin were 30.8% and 10.6%, respectively, better than third-quarter 2021. We still expect Loblaw to exit the year with 2.0x-2.3x leverage (S&P Global Ratings' adjusted), reflecting the company's strong performance, notwithstanding the recent C$829 million Lifemark acquisition, and 2022 capital expenditure and share buyback programs in line with 2021. Loblaw food-retail same-store sales growth (SSSG) rose 6.9% for the third quarter, with the company's internal food inflation close to reported CPI for food at 10.7%. With food inflation ahead of SSSG, the company still outperformed with food tonnage growth at close to breakeven (combined across all banners) and food margin...

Bulletin