Safeway, a North America-based food and drug retailer, reported lower profits for the second quarter (Q2) ended 15 June 2013, due to one-time charges, including tax expenses from the sale of its Canadian operations.
Safeway's second quarter net income totaled $8.4m. Sales and other revenue for the quarter ended 15 June 2013 edged down 1.6% to $8.7bn from $8.8bn in the year-ago period.
Safeway has attributed the drop in sales to lower fuel sales in 2013 and the sale of its Genuardi's stores in 2012.
Identical-store sales increased 1.2%, excluding fuel. Income from continuing operations was $58.1m. Gross profit grew 29 basis points to 26.23% of sales. Operating profit margin increased two basis points from last year to 1.59%.
For the 24 week period ended 15 June 2013, net income amounted $127.3m, compared to $195.6m in the same period last year.
Sales and other revenue declined 0.8% to $17.2bn in the first 24 weeks of 2013, from $17.3bn in the first 24 weeks of 2012. Income from continuing operations increased to $113m, compared to $77.8m in the corresponding period a year ago.
In June 2013, Safeway had entered into an agreement to sell its Canadian operations through a sale of substantially all of the net assets of Canada Safeway to Sobeys, a Canadian food retailer and wholly owned subsidiary of Empire Company Limited.
Safeway currently operates 1,412 stores in the US.
