By Ketki Saxena
Investing.com -- Grocery chain Loblaw Companies Limited (TSX:L) reported a significant growth in its net income during the second quarter, with an increase of over 31 percent to $508 million - equivalent to $1.58 per diluted share. In addition, adjusted net earnings amounted to $626 million or $1.94 per diluted share.
The overall revenue also saw a positive trend with an upswing of 6.9 percent, reaching a total of $13.7 billion by the end of the June 17th quarter.
This financial performance surpassed analyst expectations who had predicted revenues at around $13.6 billion and earnings per share at approximately $1.91 according to Refinitiv.
Loblaw (TSX:L) described this quarter as being characterized by “a focus on value” alongside lower gross margins due to food inflation continuing its upward trajectory.
"We will build on this strength and continue to take meaningful steps to fight back against inflation,” said Galen Weston, Chair and President in a press release.
He further added that their discount offering along with best-in-class control brand products and PC Optimum program are resonating well with customers seeking value without compromising quality.