Loblaw's profit climbs as generic GLP-1 prescriptions boost pharmacy sales

Loblaw Companies announced a 5% jump in profit for the second quarter, attributing the gain largely to its pharmacy unit where sales rose 4.6% on a comparable basis. Executives said the introduction of generic semaglutide injections, approved by Health Canada in April, has spurred a 40% increase in GLP-1 drug sales year-to-date. CFO Richard Dufresne noted that higher volumes are offsetting lower prices, improving both revenue and gross margins.

The company's core grocery business saw a modest 1.6% same-store sales increase, while its discount chains No Frills and Maxi continue to attract price-sensitive shoppers. Inflation in grocery prices eased to 3.9% in June, supporting the retailer's value positioning. Despite the earnings beat, Loblaw shares slipped 1.8% in midday trading, though they remain up about 4.5% for the year.