BRAMPTON, ONTARIO February 23, 2023 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the fourth quarter ended December 31, 2022¹ and the release of its 2022 Annual Report - Financial Review (“Annual Report”). The Annual Report includes the Company’s audited financial statements and Management’s Discussion and Analysis (“MD&A”) for the fiscal year ended December 31, 2022.

Loblaw continued to deliver strong financial and operating results in the fourth quarter. Retail segment sales grew 9.7% reflecting strong growth in both Food and Drug businesses. Drug Retail sales growth was driven by continued strong demand for cough and cold products and strength in high margin beauty and cosmetics categories. Food Retail sales reflected the Company’s efforts to provide value to its customers. The Company’s Discount stores outperformed, benefiting from an increased consumer focus on price. Market stores extended strong performance relative to peers with impactful promotional strategies. Gross margins were slightly lower, largely related to the no name^® price freeze and increased commitment to promotional activity, partially offset by continued strength in higher margin front-store sales in the Drug business. Higher sales and leverage from focused cost control measures drove earnings growth in the quarter.

“Loblaw used its assets to provide value to customers in a period of continued inflation,” said Galen G. Weston, Chairman and President, Loblaw Companies Limited. “Consumers responded favourably to those efforts and continued to benefit from our extensive private label offering, leading loyalty program and targeted promotions.”

2022 FOURTH QUARTER HIGHLIGHTS

• Revenue was $14,007 million, an increase of $1,250 million, or 9.8%.

• Retail segment sales were $13,694 million, an increase of $1,208 million, or 9.7%. ◦ Food Retail (Loblaw) same-stores sales increased by 8.4%. ◦ Drug Retail (Shoppers Drug Mart) same-store sales increased by 8.7%, with front store same-store sales growth of 11.5% and pharmacy same-store sales growth of 5.4%.

• E-commerce sales increased by 8.3%.

• Operating income was $871 million, an increase of $166 million, or 23.5%.

• Adjusted EBITDA² was $1,493 million, an increase of $169 million, or 12.8%.

• Retail segment adjusted gross profit percentage² was 30.6%, a decrease of 30 basis points.

• Retail segment selling, general and administrative expenses (“SG&A”) as a percentage of sales was 20.2%, a favourable decrease of 70 basis points.

• Net earnings available to common shareholders of the Company were $529 million, a decrease of $215 million or 28.9%. Diluted net earnings per common share were $1.62, a decrease of $0.58, or 26.4%. The decrease was primarily driven by a prior year gain related to a favourable Court ruling.

• Adjusted net earnings available to common shareholders of the Company² were $575 million, an increase of $60 million, or 11.7%.

• Adjusted diluted net earnings per common share² were $1.76, an increase of $0.24 or 15.8%.

• Repurchased for cancellation 0.8 million common shares at a cost of $100 million and invested $599 million in capital expenditures, net of proceeds from property disposals. Retail segment free cash flow² was $408 million.

2022 SELECT ANNUAL HIGHLIGHTS

• Revenue was $56,504 million, an increase of $3,334 million, or 6.3%.

• Food Retail same-store sales increased by 4.7% and Drug Retail same-store sales increased by 6.9%.

• E-commerce sales were approximately $3 billion, a decrease of 3.8%, lapping elevated online sales due to lockdowns last year.

• Net earnings available to common shareholders of the Company were $1,909 million, an increase of $46 million or 2.5%. Diluted net earnings per common share were $5.75, an increase of $0.30, or 5.5%.

• Adjusted net earnings available to common shareholders of the Company² were $2,263 million, an increase of $352 million, or 18.4%.

• Adjusted diluted net earnings per common share² were $6.82, an increase of $1.23, or 22.0%.

• Repurchased for cancellation, 10.9 million common shares at a cost of $1,258 million and invested $1,407 million in capital expenditures, net of proceeds from property disposals. Retail segment free cash flow² was $2,005 million.

Note: This is an excerpt from the full release. To view the complete document, please download the full Q4 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 2022 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 Annual Report to Shareholders.