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    Verkauf von Butter mit 54 % Gewinn: Durchgesickerte Dokumente zeigen exorbitante Aufschläge von Loblaws

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    46 Comments

    3. Rayeon-XXX on

      What no the margins are razor thin no one is making any money here.

      /S

    6. canadianmohawk1 on

      Which is one of the reasons I don’t shop there.

      I vote with my wallet.

      I do most of my grocery shopping at Walmart.

    9. Dismal-Scheme-5726 on

      The boycott should be permanent for anyone who can shop elsewhere.

    11. djk3t on

      Okay I hate to be that guy but a Gross profit is just covering the cost of goods sold. The company still has to pay wages, utilities, leases, administration, etc after the price of the goods.

      ​

      Looking at those invoices it looks like a majority of the items are within 20-30 percent of GPM which is not egregious at all considering that the rest of expenses come after the cost of goods sold.

      ​

      This isnt pure profit, this is gross margin which there is a huge difference. If loblaws had a 20-30 profit ratio then yes, that would be absolutely outrageous but looking at their FS it is much lower single digits.

    13. Distinct_Meringue on

      But Reddit users were assuring me yesterday that the increase in profits definitely didn’t come from grocery

    14. rashton535 on

      Settle down poors, its all tied to inflation. Have you priced a Global 6000 jet , any new ocean going yacht or a villa in the south of france recently ? You think You’ve got it bad .

    15. prob_wont_reply_2u on

      If their profit margins were that high, you’d have people from all over the world lined up to open grocery stores.

      Edit: that’s apple level of profit margins.

    16. lakeviewResident1 on

      Oh but I thought this sub was convinced that raising profit margins from 1% to 3% in a short time was normal business ignoring the fact that is effectively triple and the % is on billions.

      Easier to blame Trudeau, simple answer for simple minds.

    17. Platypusin on

      This is gross profit on each item which means nothing. None of the cost of running the business has been accounted for before that. Pretty common in general business to target 15% net.

    22. Professional-Cry8310 on

      Not defending loblaws but this is misleading. Those are the gross margins before all other expenses like sg&a

    26. Zealousideal-Owl5775 on

      I remember a pie chart posted a few days ago that grocery stores only retained 3% profit. Lol.

    27. SmurffyGirthy on

      So the government did an investigation and couldn’t discover this? So, now that this information is out, does anyone believe the government is finally gonna do something about this price gouging?

    28. lt12765 on

      I don’t like being ripped off either, and I think it sucks that food prices are so high but those margins are not out of line with other business sectors. 25-35% is pretty normal, and higher on specialty items. There’s a lot of cost on dairy products for example due to temperatures and shelf life.

      Makes sense why local independent markets can routinely undercut the big chains by 15-25% (which I love to buy from them). They only need to keep their specific store stocked and can limit their overhead and product selection accordingly.

    29. CFPrick on

      Gross profit margin excludes all operating expenses such as wages, facility costs, marketing, etc. This article’s tile is clickbaity and capitalizes on Canadians’ financial ignorance since the word “profit” can easily be misunderstood by someone with no background in finance. I have issues with Loblaws for a few reasons, but there’s no need to make up more. These metrics are not indicative of anything without a look at the net profits here. 

    30. Accomplished_Risk476 on

      Local farmers markets for produce + Walmart for anything processed.

      I’ve been shopping this way for years and find it crazy how insanely overpriced superstore is.

    31. talcum-x on

      Forever these stores have been claiming they actually loose money on their dairy products in an effort to attract customers. I guess the jig is up.

    33. captaing1 on

      Gross profit margin and net margin are two different things. Someone should have gotten the author some accounting classes.

    35. MellowHamster on

      Gross margin is the raw markup before expenses (labour, utilities, marketing, tax, store infrastructure, etc). It differs dramatically from net income, which is the amount left over after the bills are paid.

    37. AustralisBorealis64 on

      Does the document also show the items with minimal or negative margins?

    39. EastValuable9421 on

      It’s goes even further down the line, producers are still feeding the cow crap soy feed.

    40. BornAgainCyclist on

      Galen needs another museum wing, what don’t you peasants understand?

    41. LymelightTO on

      The headline is sort of misleading, because it’s leading you to believe Loblaws makes 54% profit on a particular item, when, in reality, this is just saying, “If Loblaws could sell this particular item, and incur no other costs to do so, it would make 54%, at maximum”, because that’s the meaning of “gross”: it’s just the difference between what Loblaws buys the product for, and the retail price.

      But, rather obviously, there *are* other costs that Loblaws incurs to sell a product. Y’all are going to be shocked to find out that Loblaws has physical real estate, and employees, utilities and such, and all of those expenses make up the difference between their *gross* margins and *net* margins, and if they were reporting *net* margins, that would make the headline true, rather than.. dubious.

      I’ve never seen so many populist conspiracy theories about a company [with public financials](https://ycharts.com/companies/L.TO/profit_margin), it’s honestly amazing.

    42. Absolutebeige on

      This only proves how wrong everyone who didn’t believe they have a 3% net margin are. Their 2023 audited financial statements literally states their gross margin to be 31%, so this “leaked document” is proving the financial numbers right.

    43. youngboomergal on

      Now do Greek yogurt. It’s insane that 1 L PC brand is selling for $8 at my Independent Grocer.

    44. LustfulScorpio on

      Does no one here understand that gross profit margin does not equate to net profits?

      This is the problem with this type of “got-ya” post. Of course their GPM has to be what it is; this is how they achieve the top line revenue. But there are many things that then get taken out of this top line number including operating costs, debt payments, interest and taxes etc.

      This is nothing but click-bait and as per usual the uninformed mass responses are laughable. I guess those cuts in education do actually have a long term effect. lol

      There have been many deep dives into their actual year end financial statements if you want to look at the companies actual financial performance which they MUST make public being a publicly traded company. There is nothing to see here; all grocery retailers are doing the same things. Large brands have stores in various areas and market verticals – low cost stores through to higher end “boutique” stores.

      Please do some reading and learning before falling for this type of bs write up.

      Nowhere in this article do they talk about net profits or expenses – only gross earnings/revenue increases. Do they know how many new stores they opened in the last year across the country, or any other capital intensive operations? Some of their stores lose money; while others make it up. But if they shut down the stores where they lose money, then people freak out about there not being enough supports or options in lower income regions. Look up “food deserts” for further information.

      https://seeds.ca/schoolfoodgardens/food-deserts-bridging-the-gap-in-urban-food-systems/%5BArticle with some info on Food Desert](https://seeds.ca/schoolfoodgardens/food-deserts-bridging-the-gap-in-urban-food-systems/)

    46. maple_firenze on

      Can we blow up this monopoly already, it’s just a nonstop cycle of them lying and getting caught.

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