Loblaw Companies warns minimum wage changes, health care reform will hurt profits
by The Canadian Press
The grocery chain operator says minimum wage increases in Ontario and Alberta and health care reform in Quebec will cost almost $200 million in 2018
BRAMPTON, Ont.—Loblaw Companies Ltd. says minimum wage increases in Ontario and Alberta and health care reform in Quebec are expected to hurt its bottom line.
The grocery and drug store operator says the minimum wage increases announced in Ontario and Alberta are expected to increase its labour expenses by about $190 million in 2018.
Loblaw also says changes in Quebec are expected to have a more significant incremental impact in 2018 than in prior years.
The company made the comments as it reported a second-quarter profit attributable to shareholders of $358 million or 89 cents per diluted share. That compared with a profit of $158 million or 39 cents per diluted share a year ago.
Revenue for the quarter ended June 17 amounted to nearly $11.08 billion, up from $10.73 billion in the same quarter last year.
In addition to its grocery business, Loblaw owns the Shoppers Drug Mart chain, as well as the Joe Fresh clothing business, PC Financial personal banking and a stake in the Choice Properties real estate investment trust.
