BRAMPTON, ONTARIO May 1, 2024 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the first quarter ended March 23, 2024¹.

Loblaw began 2024 with another quarter of strong operational and financial results. The focus on retail excellence continued across the Company’s businesses driving sales growth, reductions in shrink, and earnings growth. The Company’s market leading discount banners, private label brands, and personalized PC Optimum^TM offers resonated with customers. This resulted in higher store traffic, strong market share gains in Food Retail, and revenue growth that stands out against lower internal inflation. An increase in Drug Retail sales reflected continued strength in front store beauty and cough and cold products. Canada’s Consumer Price Index (“CPI”) for Food Purchased From Stores in March was 1.9%, the lowest level recorded in more than two years and was below the headline CPI in the first quarter of 2024. The Company’s internal food inflation remained below Canada’s CPI for Food Purchased From Stores again this quarter.

“We continued to deliver value, quality and service across our various banners, which led to more customers choosing our stores,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our dedicated colleagues, strategic plan and unique assets position us well to best serve the needs of Canadians today and in the future.”

2024 FIRST QUARTER HIGHLIGHTS

• Revenue was $13,581 million, an increase of $586 million, or 4.5%.

• Retail segment sales were $13,290 million, an increase of $555 million, or 4.4%.

  • Food Retail (Loblaw) same-stores sales increased by 3.4%.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 4.0%, with front store same-store sales growth of 0.7% and pharmacy and healthcare services same-store sales growth of 7.3%.

• E-commerce sales increased by 16.1%.

• Operating income was $861 million, an increase of $92 million, or 12.0%.

• Adjusted EBITDA² was $1,544 million, an increase of $96 million, or 6.6%.

• Retail segment gross profit percentage² was 31.6%, an increase of 30 basis points, primarily driven by improvements in Drug Retail gross margins, mainly due to sales mix, and lower shrink.

• Net earnings available to common shareholders of the Company were $459 million, an increase of $41 million or 9.8%.

• Diluted net earnings per common share were $1.47, an increase of $0.18, or 14.0%.

• Adjusted net earnings available to common shareholders of the Company² were $537 million, an increase of $32 million, or 6.3%.

• Adjusted diluted net earnings per common share² were $1.72, an increase of $0.17 or 11.0%.

• Net capital investments were $348 million, which reflects gross capital investments of $387 million, net of proceeds from property disposals of $39 million.

• Repurchased for cancellation 3.2 million common shares at a cost of $470 million. Free cash flow² used in the Retail segment was $359 million.

• Thirteenth consecutive annual increase to the quarterly common share dividend from $0.446 per common share to $0.513 per common share, an increase of 15.0%.

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2024 First Quarter Report to Shareholders for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with Loblaw Companies Limited’s filings with securities regulators made from time to time, all of which can be found at sedarplus.ca and at loblaw.ca.

²See “Non-GAAP and Other Financial Measures” section in Appendix 1 of this News Release, which includes the reconciliation of such non-GAAP and other financial measures to the most directly comparable GAAP measures.

³To be read in conjunction with the “Forward-Looking Statements” section of this News Release and the Company’s 2024 First QuarterReport to Shareholders.