Loblaw Co. Ltd. reported increased earnings and sales for the third quarter, with its discount banners outperforming conventional stores as consumers continue to search for value amid high

grocery prices. The company on Wednesday released its earnings results for the quarter ended Oct. 4, reporting revenue growth of 4.6 per cent to $19.4 billion, compared to $18.5 billion in the third quarter of 2024.

Its operating income was $1.38 billion, up 4.2 per cent from the previous year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $2.2 billion, an increase of 7.2 per cent.

Retail sales were up 4.5 per cent to $19.08 billion in the third quarter. Drug retail sales increased 3.8 per cent to $5.49 billion and same-store sales increased by four per cent.

Same-store food sales and food revenue were a “string bean shy” of forecast, said Royal Bank of Canada analyst Irene Nattel.

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Food retail sales were up 4.8 per cent to $13.59 billion and same-store sales up by two per cent, missing the three per cent growth forecast.

Loblaw said its food retail business attracted more customers and larger baskets in the quarter, resulting in its super market and discount banners outperforming other business sections on tonnage market share growth.