- Multinational grocery and retail company, The North West Company (TSX:NWC) has posted a mixed first quarter report, with sales up but net earnings dropping
- First quarter sales grew 19.8 per cent to C$592.6 million, due to covid-19 related buying trends
- However net earnings for the quarter decreased 53 per cent, down to $12.3 million for the quarter
- Alongside the news the company also posted its first quarter dividend of $0.33 per share
- The North West Company (NWC) is up 3.16 per share and is trading at $27.23 per share
Multinational grocery and retail company, The North West Company (TSX:NWC) has posted a mixed first quarter report, with sales up but net earnings dropping.
First quarter sales grew 19.8 per cent to C$592.6 million, with gains being seen in all regions of Canada. The company put a lot of the surge in sales down to the COVID-19 related consumer income and spending changes, resulting from as panic buying trends.
However net earnings for the quarter decreased 53 per cent, down to $12.3 million for the quarter.
The company’s gross profit went up 17.9 per cent, driven by the higher sales of produce supplied to local stores, in an attempt to keep prices low during the outbreak.
Earnings from operations fell 47.4 per cent, down to $19.5 million, compared to $37 million in last year’s first quarter.
Alongside the results, the company has posted a first quarter dividend of $0.33 per share.
President and CEO of the company, Edward Kennedy said the remote communities and customers scattered through the north had depended upon North West to provide them essential services during the pandemic.
He went on to thank the company’s staff to adapting during the pandemic.
“They have adapted to a range of new work conditions, especially without front-line positions, and they have sought out innovative solutions to the many safety product supply challenges that were complete unexpected two months ago.
Edward went on to say that, while business volumes have been generally very strong, the company still recognises that the overall COVID-19 situation remains uncertain.
The North West Company (NWC) is up 3.16 per share and is trading at $27.23 per share.
