BRAMPTON, ONTARIO November 16, 2022 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the third quarter ended October 8, 2022.¹

Loblaw delivered positive financial and operating performance as it continued to execute on retail excellence in its core businesses while advancing its growth and efficiencies initiatives, and furthering its Environmental, Social and Governance leadership.

In a continued period of global food inflation, Canadian retail food inflation remained among the lowest of G7 countries, however global inflationary forces continued to increase the cost of food in the quarter. Loblaw’s efforts to moderate cost increases and provide superior value to customers through its PC Optimum^TM Program and promotions resulted in strong sales and stable gross margins in Food Retail. Sales were led by strong performance in Discount banners such as No Frills^® and Real Canadian Superstore^®, and a continued shift to private label brands including President’s Choice^® and no name^®. In Drug Retail, revenues benefited from elevated sales of higher margin categories like beauty, cough and cold.

“In a difficult economic environment, Loblaw is putting the strength of its unique assets to work for Canadians, offering record loyalty rewards, unmatched private-label brands, the best discount stores, and an inflation-fighting price freeze,” said Galen G. Weston, Chairman and President, Loblaw Companies Limited.

“Customer expectations for value have never been higher, and we are working hard to meet them.”

2022 THIRD QUARTER HIGHLIGHTS

• Revenue was $17,388 million, an increase of $1,338 million, or 8.3%.

• Retail segment sales were $17,130 million, an increase of $1,299 million, or 8.2%.

  • Food Retail (Loblaw) same-stores sales increased by 6.9%.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 7.7%.

• E-commerce sales increased by 3%.

• Operating income was $991 million, an increase of $128 million, or 14.8%.

• Adjusted EBITDA² was $1,846 million, an increase of $172 million, or 10.3%.

• Retail segment adjusted gross profit percentage² was 30.8%, an increase of 10 basis points.

• Net earnings available to common shareholders of the Company were $556 million, an increase of $125 million or 29.0%. Diluted net earnings per common share were $1.69, an increase of $0.42, or 33.1%.

• Adjusted net earnings available to common shareholders of the Company² were $663 million, an increase of $123 million, or 22.8%. Adjusted diluted net earnings per common share² were $2.01, an increase of $0.42 or 26.4%.

• Repurchased for cancellation, 3.4 million common shares at a cost of $403 million and invested $432 million in capital expenditures. Retail segment free cash flow² was $543 million.

Note: This is an excerpt from the full release. To view the complete document, please download the full Q3 2022 news release(Open in a new tab). 

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2021 Annual Report 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 sedar.com and at loblaw.ca.

²See “Non-GAAP Financial Measures” section in Appendix 1 of this News Release, which includes the reconciliation of such non-GAAP 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 2022 Third Quarter Report to Shareholders.