Loblaw profits dipped by $111 million in the first three months of this year compared to the end of 2022.
In its Q1 report released on Wednesday, the company says it made $418 million with a $733 million increase in sales.
It credits this gain to solid demand for beauty products, cough and cold products, and groceries.
The Canadian retail giant reported a 3.1% increase in food retail at Loblaws and a 7.4% rise in sales for drug products at Shoppers Drug Mart. It also found a $46 million increase in adjusted profits compared to the same quarter last year.
“In the face of ongoing inflation, we are working hard to deliver the value and choice Canadians are looking for,” said Loblaw president Galen Weston Jr.
“I’m pleased that customers are responding positively to the breadth of our offerings, including our diverse store formats, market-leading prices, private label brands, and loyalty offers.”
Despite the company’s reported gains, it saw a significant drop compared to its earnings of $529 million in the fourth quarter of 2022.
This report comes as Weston and Loblaw are under heavy scrutiny from the public as grocery prices continue to soar.
Canadians sounded off online in March after the businessman defended high food prices.
Following the heat, the company announced in April that Weston Jr. was stepping down as Loblaw’s CEO and will be replaced by Per Bank, the company’s new president and CEO.
Loblaw plans to expand its reach, spending billions to open and renovate hundreds of Shoppers Drug Mart locations nationwide.
To read Loblaw’s full Q1 report, click here.