Grocery chain Loblaw Cos. Ltd. reported a higher profit in the fourth quarter and a 12.9 per cent rise in sales.
The Toronto-based company reported a profit of $294-million or $1.06 a share, compared with $265-million or 95 cents a year ago.
The company was expected to report a profit of $1.13 a share, up from last year's 95 cents. Loblaw shares lost 1 per cent in Toronto.
Sales rose to $6.4-billion from $5.6-billion a year ago. An additional week in 2003 added a 8 per cent positive effect. Same store sales rose 3.3 per cent.
During the period, the company took a $7-million charge to adjust to changes in Ontario taxes. That hit its per-share earnings by 3 cents.
For the year, the company's sales rose 9.3 per cent to $25.2-billion. Its profit rose to $845-million from $728-million.
“Sales and earnings growth rates into 2004 are expected to remain solid, supported by the continuation of the Company's capital investment program, good cash flow generation and a strong financial position,” the company said in a statement.
Loblaw says 541 employees accepted a voluntary retirement offer, resulting in a charge of$25-million. It will take an additional $2-million charge in the first quarter as 94 more employees opted for the offer.
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