Loblaw hikes dividend as profit up 21% in first quarter

Loblaw Companies Ltd. is reporting a big jump in first quarter profit as it benefits from major strategic moves, including the purchase of Shoppers Drug Mart.

Canada's largest grocery company says its net income was up 21.7 per cent from the same time last year, rising to $146 million and its adjusted net income was up 96.7 per cent to $301 million.

Loblaw's overall revenue for the quarter ended March 22 was $10.05 billion, up $2.76 billion or 37.8 per cent from the same time last year.

Most of the increased revenue came from Shoppers Drug Mart, the country's largest pharmacy retailer.

Loblaw says its quarterly dividend will go up by two per cent to 25 cents per common share, starting in July.

More to come