Loblaw reports $529 million Q4 profit, revenue up nearly 10 per cent, as food prices creep up

Loblaw Companies Ltd.'s fourth-quarter revenue rose nearly 10 per cent compared with a year ago amid soaring food inflation.

The parent company of Loblaws grocery stores and Shoppers Drug Mart said it earned a profit available to common shareholders of $529 million in it latest quarter and that the sales growth was driven by continued strong demand for cough and cold products and strength in high-margin beauty and cosmetics categories."

The retailer on Thursday reported that it's overall revenue increased to $14 billion in the weeks ended Dec. 31 2022, up from $12.8 billion in the fourth quarter of 2021.

This news comes after Loblaw CEO Galen Weston, Empire CEO Michael Medline and Metro CEO Eric La Fleche - the heads of Canada's largest supermarkets - were summoned by the House of Commons agriculture committee on Monday as part of its inquiry into alleged profiteering by the grocery industry and its business practices.

Consumers have grown weary of skyrocketing grocery bills as the big grocers report record profits. Grocery prices continue to surge far past the headline" inflation rate, rising by 11.4 per cent, despite Canada's annual rate of inflation falling to 5.9 per cent in January, Statistics Canada reported.

More to come.

Ghada Alsharif is a Toronto-based business reporter for the Star. Reach Ghada via email: galsharif@torstar.ca