BRAMPTON, ONTARIO May 3, 2023 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the first quarter ended March 25, 2023¹.

Loblaw’s sales and earnings growth continued to reflect its focus on retail excellence. Drug Retail sales were led by continued strength in higher margin beauty and cough and cold products. Drug Retail sales growth rates were further magnified by lapping Omicron related lockdowns last year. Food Retail sales growth accelerated through the quarter, after lapping lockdown related benefits in the first part of 2022. This was the case in both Market and Discount stores, though the latter continued to outperform, benefiting from the heightened consumer focus on price. Total Retail gross margin increased due to higher sales growth in more profitable front-store sales in drug stores, offsetting a slight decline in Food Retail gross margin as costs continued to increase faster than prices. Higher sales and cost control leverage drove earnings in the quarter.

“In the face of ongoing inflation, we are working hard to deliver the value and choice Canadians are looking for,” said Galen G. Weston, Chairman and President, Loblaw Companies Limited. “I’m pleased that customers are responding positively to the breadth of our offerings including our diverse store formats, market leading prices, private label brands, and loyalty offers.”

2023 FIRST QUARTER HIGHLIGHTS

• Revenue was $12,995 million, an increase of $733 million, or 6.0%.

• Retail segment sales were $12,735 million, an increase of $690 million, or 5.7%.

  • Food Retail (Loblaw) same-stores sales increased by 3.1%, including the negative impact of 1.1% related to the timing of New Year’s Day.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 7.4%, with front store same-store sales growth of 10.3% and pharmacy same-store sales growth of 4.7%.

• E-commerce sales decreased by 1.1%, lapping elevated online sales due to lockdowns last year.

• Operating income was $769 million, an increase of $31 million, or 4.2%.

• Adjusted EBITDA² was $1,448 million, an increase of $105 million, or 7.8%.

• Retail segment adjusted gross profit percentage² was 31.3%, an increase of 20 basis points.

• Net earnings available to common shareholders of the Company were $418 million, a decrease of $19 million or 4.3%. Diluted net earnings per common share were $1.29, a decrease of $0.01, or 0.8%. 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 $505 million, an increase of $46 million, or 10.0%.

• Adjusted diluted net earnings per common share² were $1.55, an increase of $0.19 or 14.0%.

• Repurchased for cancellation 3.3 million common shares at a cost of $383 million and invested $208 million in capital expenditures, net of proceeds from property disposals. Free cash flow(2) used in the Retail segment was $81 million.

• Twelfth consecutive annual increase to the quarterly common share dividend from $0.405 per common share to $0.446 per common share, an increase of 10%.

• The Company just announced the release of its 2022 Environmental, Social and Governance (“ESG”) Report.

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2023 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 “Non-GAAP and Other 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 2023 First Quarter Report to Shareholders.