07:21 AM EDT, 05/01/2024 (MT Newswires) -- Loblaw ( LBLCF ) on Wednesday reported a better than expected first quarter profit on higher revenue.

The Canadian retailer said it made a profit attributable to shareholders of $459 million, or $1.47 per diluted share, up from $418 million, or $1.29 per share, in the prior year quarter.

The adjusted profit of $537 million, or $1.72 per diluted share, was higher than the $505 million or $1.55 last year. The result beat the Capital IQ consensus analyst forecast of $1.70 per share.

Revenue rose 4.5% to $13.6 billion, from last year's $13 billion. Loblaw ( LBLCF ) reported that food retail sales were $9.4 billion, while same-store sales grew by 3.4%, compared with 3.1% last year. It noted that food retail traffic increased while basket size decreased. During the same period, drug retail same-store sales increased by 4%.

For the full year 2024, Loblaw ( LBLCF ) expects its retail business to grow earnings faster than sales; and adjusted net earnings per share growth in the high single-digits. The company has set aside $1.8 billion to upgrade store network and distribution centres.

Loblaw ( LBLCF ) hiked its quarterly dividend by 15% to $0.513 per common share, marking its 13th consecutive annual increase. The dividend is payable on July 1.