Quote:
Originally Posted by opendoor
But that's not really what's happening. Here's Loblaws' Net Income and revenue by year for the last 5 years:
2018: $766M on $46.7B in revenue
2019: $1.08B on $48B in revenue
2020: $1.11B on $52.7B in revenue
2021: $1.88B on $53.2B in revenue
Last 12 months: $2.14B on $55.3B in revenue
So revenue went up by 18% and Net Income went up by 179%.
Empire (who owns Sobeys, Safeway, FreshCo, etc.) has seen similar growth:
2018: $160M on $24.2B in revenue
2019: $387M on $25.1B in revenue
2020: $584M on $26.6B in revenue
2021: $702M on $28.3B in revenue
2022: $746M on $30.2B in revenue
Revenue saw 25% growth and Net Income roughly tripled (2018 was a down year, so I compared 2022 to their average net income in the years around then).
Now the companies claim that the huge increase in margins is because they're seeing more business in their their higher profit areas (pharmacy and whatnot), but neither has provided any evidence of that and their financial statements don't show that.
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Damn. Thanks for the data. That's more info than I would have expected.
I cannot imagine pharmacy accounting for all that much of the increase. Frankly, when people's money gets tight they're less likely to buy vitamins and so forth, it seems to me... also, we just had a couple of years where the rate of cold and flu was massively down. So... yeah, not making much sense there.