Brampton, Ontario. - Loblaw Companies Ltd. raised its quarterly dividends as it announced that its earnings in the first quarter increased by nearly 40 percent compared to last year.

The grocery and pharmacy retail stores said on Wednesday that it will now pay quarterly dividends of 40.5 cents per share, up from 36.5 cents per share.

The increase in shareholder payments came as the company announced that earnings available to common shareholders reached $437 million or $1.30 per diluted share for the 12-week period ending March 26 compared to $313 million or 90 cents per diluted share last year.

Total revenue for the quarter was $12.26 billion, up from $11.87 billion in the same quarter last year. Loblaw's Chairman and CEO, Galen G. Weston, said the company's strong earnings reflect its ability to provide service and value to meet the evolving needs of Canadians.

He said in a statement: "We started the year with momentum in our core retail business, a clear strategic agenda, and continued momentum in our growth initiatives."

Retail grocery store sales rose 2.1 percent, while same-store pharmacy sales grew 5.2 percent, with pharmacy sales increasing by 6.8 percent.