BRAMPTON, ONTARIO May 5, 2021 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the first quarter ended March 27, 2021. The Company’s 2021 First Quarter Report to Shareholders will be available in the Investors section of the Company’s website at loblaw.ca and will be filed on SEDAR and available at sedar.com.

“A year into the pandemic, our stores, supply chain and digital assets have demonstrated resilience and innovation and are better prepared than ever to serve the needs of Canadians,” said Galen G. Weston, Executive Chairman, Loblaw Companies Limited. “Our strong financial results reflect continued momentum and positive consumer response to the value and services in our stores and our expanding online solutions.”

2021 FIRST QUARTER HIGHLIGHTS

Unless otherwise indicated, the following highlights include the impact of COVID-19.

• Revenue was $11,872 million. This represented an increase of $72 million, or 0.6% when compared to the first quarter of 2020.

• Retail segment sales were $11,670 million. This represented an increase of $86 million, or 0.7% when compared to the first quarter of 2020.

  • Food Retail (Loblaw) same-stores sales growth⁴ was 0.1%

  • Drug Retail (Shoppers Drug Mart) same-store sales decreased by 1.7%, with pharmacy same-store sales growth of 3.5% and front store same-store sales decreased by 6.4%

• The Company’s e-commerce sales increased 133% compared to the first quarter of 2020.

• The Company incurred approximately $48 million (2020 - $32 million) in COVID-19 related costs to ensure the safety and security of customers and colleagues.

• Operating income was $617 million. This represented an increase of $76 million, or 14.0% when compared to the first quarter of 2020.

• Adjusted EBITDA² was $1,218 million. This represented an increase of $53 million, or 4.5% when compared to the first quarter of 2020.

• Net earnings available to common shareholders of the Company were $313 million. This represented an increase of $73 million, or 30.4% when compared to the first quarter of 2020. Diluted net earnings per common share were $0.90. This represented an increase of $0.24, or 36.4% when compared to the first quarter of 2020.

• Adjusted net earnings available to common shareholders of the Company² were $392 million. This represented an increase of $43 million, or 12.3% when compared to the first quarter of 2020.

• Adjusted diluted net earnings per common share² were $1.13. This represented an increase of $0.16, or 16.5% when compared to the first quarter of 2020.

• The year over year improvement in financial performance was significantly impacted by the Financial Services segment as a result of a $20 million reduction in the expected credit loss provision in the current quarter and the lapping of the $50 million increase in the expected credit loss provision recorded in the first quarter of 2020.

• The Company repurchased, for cancellation, 5.4 million common shares at a cost of $350 million.

• The Company invested $203 million in capital expenditures and generated $288 million of free cash flow².

Note: This is an excerpt from the full release. To view the complete document, please download the full Q1 2021 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 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 sedar.com and at loblaw.ca.

²See Section 11 “Non-GAAP Financial Measures” of the Company’s 2021 First Quarter Report to Shareholders, 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 2021 First Quarter Report to Shareholders.

⁴Certain figures have been restated due to the non-GAAP financial measures policy change. See section 11 “Non- GAAP Financial Measures” of the Company’s 2021 First Quarter Report to Shareholders.