North America-based food and drug retailer Safeway reported a 63% surge in profits for the first quarter ended 23 March 2013, aided by a tax benefit.
Safeway's first-quarter net income was $118.9m, up from $72.9m in the year-ago period.
However, sales and other revenue for the quarter ended 23 March 2013 edged down to $9.99bn from $10bn in the year-ago period.
Safeway has attributed the drop in sales to lower fuel sales and the sale of its Genuardi's stores.
Identical-store sales increased 1.5%, excluding fuel. Including fuel, identical-store sales rose 0.7%.
Income from continuing operations were $118.8m, up from $81.6m in the previous-year quarter.
Gross profit declined 14 basis points to 26.70% of sales. Operating profit margin declined 10 basis points from last year to 1.80%
Safeway chairman and CEO Steve Burd said the company has witnessed market share gains in the first quarter.
"Just for U™ usage continues to grow, and our partner fuel reward program is rolling out on schedule and resonating well with consumers," Burd added.
"The successful IPO of Blackhawk Network Holdings last week highlights the value we are creating for our stockholders. The proceeds from our sale of Blackhawk stock were used to pay down debt."
Safeway currently operates 1,638 stores in the US and Canada.
