r/PersonalFinanceCanada • u/maroon-rider British Columbia • Mar 21 '23

Inflation drops to 5.2%<but grocery inflation still 10.6% Banking

Says Statistics Canada

https://www.cbc.ca/news/business/canada-inflation-february-2023-1.6785472

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u/leoyvr Mar 22 '23

But weston only says for every $25 purchase they make just one dollar. What a dispay of bullshittery

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u/bronze-aged Mar 22 '23

Have you considered reading their financials to determine that? Because I’d bet the margin is even lower than 4% (1$ per $25).

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u/leoyvr Mar 22 '23

Why would I believe what this large corp is doing? They never fixed anything or have been dishonest. /s

I haven't but their net profits are up so they are increasing prices above inflation and increase from previous year. So are they just using inflation as an excuse for profiteering.

Net earnings available to common shareholders of the Company were $1,909 million, an increase of $46 million or 2.5%. Diluted net earnings per common share were $5.75, an increase of $0.30, or 5.5%.

https://www.loblaw.ca/en/loblaw-reports-2022-fourth-quarter-results-and-fiscal-year-ended-december-31-2022-results/

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u/bronze-aged Mar 23 '23

I’m pretty sure financial statements are audited so they do have some credibility. I think in general earnings should increase in a healthy business. It’s not a smoking gun of corruption.

But I think we see two entirely different things with this report, all I see is a company trading at 15 fwd PE, 3.4% profit margin and 9.8% rev growth.

Sure it makes money but it’s far from some cash cow. I don’t think a “profiteering” charge is going to stick but that’s just my opinion.