Loblaw forecasts annual profit above estimates on strong grocery…

Feb 23 (Reuters) — Canadian retailer Loblaw Cos Ltd forecast annual earnings above analysts’ expectations on Thursday, hipolink.me helped by strength in its pharmacy business and as demand holds up for groceries.

Loblaw expects full-year 2023 adjusted earnings per common share to grow in low double-digits compared with the average analyst estimate of 9.64%, according to Refinitiv IBES data.

Rising prices are forcing budget-conscious consumers to prioritize spending on essentials like food and medicines and trade down to cheaper private-label items from higher-priced brands, benefiting retailers such as Loblaw.

The company’s fourth-quarter revenue rose about 10% to C$14.01 billion ($10.35 billion), topping the average estimate of C$13.75 billion.

On an adjusted basis, Loblaw earned C$1.76 per share, beating analysts’ expectations of C$1.71 per share.($1 = 1.3533 Canadian dollars) (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shilpi Majumdar)