Stacking Up Canada's Grocers: Food Retailing Revenue from Sobeys, Loblaws (groceries)

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 Full report on Canada's industry with results compiled by the USDA, available here

For calendar year 2013 (Jan - Dec) Canadian retail food sales totaled C$89 billion accounting for 20% of total retail sales of C$483b.  Five years to 2012 food sales up +19.5% - expected to grow at a compound annual rate of 1.2% 2013 - 2017.  Supermarkets now hold 63% share of the food market at $56.2 billion down from 64.5% 2012, $56.7b, 67.2% $58.2b 2011.  Food sales by mass merchandisers (walmart target) surpassed $10 billion in 2013 (vs $9.5b, $8.3b in 2012, 2011) gives it 11.2% share (up from 10.8%, 9.6%).

 Previous Fiscal Year - more information + data from the #3 grocer Metro Inc -->  North American Interests: Sobeys Did Well In 2012 Even Compared To Loblaws, Metro

 

 december sales, food sales, canada, grocery industry

 

 

 

national consumer price index

 

Quarterly effective income tax rates 2014 (vs 2013)

                                                                                   Loblaws 1q 25.4% (vs 26.6%)  Sobeys 1q 24.6% (vs 27.4%) 2q 26.3% (vs 26.3%) 3q 72.6% (27.7%) Metro 1q 25.4% (vs 25.4%) 2q 24.2% (17.3%)

Metro Inc September 2013 locations and location size by banner :  Supermarkets Metro 358 (33,300 ft2), Super C discount 85 (40,500 ft2), Food Basics 116 (33,000 ft2); Richelieu 76;  Grocery ami 81 Extra! (small markets with full meat offering); Convenience 415.

 

March 2014 Sobeys - Safeway starts showing up in results (3Q2014 ended February 1).  positives:  Safeway boosts company revenue by $1.62 billion (versus organic growth at Sobeys of only $113.3m or 2.7%).  EPS plunge ($71.4-> $6.4m) but only because of finance costs (+198%) associated with the acquisition of Safeway (adjusted earnings are a healthy $77.3m $0.84/sh vs $75.8m $1.11/sh).  long term debt climbs to $3891.5 million (+$2828m vs May / +$2893.6m vs Feb 2013).  ebitda/debt now at 8.5x vs 16.8x).  Loblaw Cos more than doubled its cash holdings thanks to government treasury bills ($322m-> $1420m).  Loblaw adjusted net earnings stable ($185-> $183m) despite new costs ($7m in 4q connected to Shoppers Drug Mart acquisition / fixed asset and other impairments -$(29)m vs +$9m 4q2012 / choice properties ipo costs $3m).  adj operating margin: 4.2% (vs 4.4%).  adj ebitda margin steady at 6.8%.  unadjusted net earnings down by $12m ($139-> $127m) impacted by 21.1% increase in income taxes ($38m-> $46m) and net interest expense increase of 67.9% ($84m-> $141m).

In 4Q2013 Choice Properties adds $319 million new revenue to Loblaws ($287m from retail segment) - oper inc $370m (adj at $382m), startup - admin costs were $12m.  net oper inc $222 million (cash rental revenue less property operating costs)

 

November 2013 - Competition from US-based retailers Wal-Mart and Target bites into earnings at Loblaw Companies and Metro Inc - Loblaws warns that by the end of the current fiscal year shareholders may have to deal with zero profit growth .. For the 3Q2013 Loblaws internal food price inflation flat (vs modest last year), Canadian national food price inflation for the quarter was +0.9% (vs +1.8% last year).  By segment : sales strongest in gas bar, apparel; modest in food; weakest in drug store, general merchandise.  over last eight quarters Loblaws net square footage increased by 0.9m ft2 reaching 5.8m ft2.  stock price fell ~8% on day of release.

Metro Inc 3Q arguably weaker than Loblaws .. Loblaw same store sales actually grew +0.1% (+0.4% including gas) versus -0.9% at Metro Inc.  Decline in Metro's quarterly profit (-42%) not as bad as appears.. last year included extra week and $21.7m dilution gain from the sale of stake in Couche Tard.. excluding both factors net earnings from continuing operations stable at $113.0m.

September 2013 - Sobeys begins the 2014 fiscal year on a rough note.  consolidated earnings down 40% however most of the decline is attributable to discontinued operations (-26c/sh) and transaction costs associated with the Safeway acquisition (-$10.1m).  interesting note: sales from discontinued operations including Empire Theatres +13% to $55.0m. ss-sales -0.1%  more..  Sobeys 1q2014

August 2013 - full report on Metro Inc 3q/9m results

middle graph is updated for March so it includes Sobeys 3q2013.  The bottom graph was made in November so it is based on results from the previous period.

September 2013 update.  Sobeys quarterly information summarized here.

March 2013 update:  Loblaws 4Q2012 and Metro inc 1Q2013 

November 2012 update :  Loblaws 3Q2012 and Metro Inc 4Q2012 Release Quarterly Financial Results

Sobeys In Depth:  Grocery News.org article Company Spotlight: Sobeys

Below Archived data from June 2012.

 

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