- Multinational grocer and retailer The North West Company (NWC) has increased its dividend, following strong second quarter results
- Most notably, the company saw a 23 per cent jump in sales to C$648.5 million, when compared to the previous corresponding period
- NWC attributed the improved sales to increased spending and income support related to the ongoing COVID-19 pandemic
- This led to a substantial rise in net profit, which leapt up $44.6 million to $62.6 million, compared to 2019’s same quarter
- On the back of the strong results the company declared a dividend of 36 cents, a three-cent bump on the previous shareholder distribution
- The North West Company (NWC) is up 7.48 per cent and is trading at $30.74 per share
Multinational grocer and retailer The North West Company (NWC) has increased its dividend, following strong second quarter results.
On the back of a mixed first qaurter, the company’s second qaurter finacials were led by an impressive 23 per cent jump in sales to C$648.5 million, when compared to the previous corresponding period.
NWC attributed the improved sales to increased spending surrounding the onset of COVID-19, as well as the impact of pandemic related income support in its operating communities.
This resulted in a substantial rise in net profit, which leapt up $44.6 million to $62.6 million.
However, the pandemic-related revenue bump was partially offset by lower sales in the company’s Giant Tiger stores, a number of which were offloaded during the quarter.
On the back of the strong results the company declared a dividend of 36 cents, a three-cent bump on the last distribution.
President and CEO of NWC, Edward Kennedy commented on the company’s strong quarterly performance.
“Like the rest of the world, the communities we serve, and our people continue to live and work under constraints and uncertainty created by the COVID-19 pandemic.
“This unexpected environment has led to new thinking and behaviours, with unique implications compared to other more urban, densely populated regions. The second quarter gave us a clearer picture of what this looks like and the emerging opportunities and risks for North West,” he said.
Looking forward, Edward expects the pandemic to continue to have a impact on the company’s future quarters. With that in mind, NWC is continuing its strategy to gain a significant market share by lowering food prices.
The North West Company (NWC) is up 7.48 per cent and is trading at $30.74 per share at 2:01pm EDT.