BRAMPTON, ONTARIO November 15, 2023 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the third quarter ended October 7, 2023¹.

Loblaw delivered another quarter of strong operational and financial results as it continued to execute on retail excellence. The Company’s focus on providing value across its Food and Drug Retail businesses led to sales growth, increased market share, and higher unit sales. Drug Retail sales reflected ongoing strength in front store beauty products and increased prescription sales. In Food Retail, the Company’s discount stores benefited from increased traffic from customers seeking quality and value from its private label brands and personalized PC Optimum^TM offers. The Company continued to invest in opening new discount stores, including its 150th discount Maxi location in the community of Ville-des-Laurentides, which celebrated its first full-shop discount grocery store. Retail gross margin declined in both Food and Drug as a result of targeted promotional investments and increased shrink. Increased investments to lower food prices were reflected in the Company’s internal food inflation, which was lower than Canada’s food CPI. Higher sales and ongoing cost control initiatives drove adjusted net earnings growth in the quarter.

“Our stores are delivering more value, including deeper discounts on essentials, and customers are responding positively,” said Galen G. Weston, Chairman, Loblaw Companies Limited. “We remain focused on doing what we can to fight inflation and deliver lower prices for Canadians, while continuing to invest for the future.”

2023 THIRD QUARTER HIGHLIGHTS

• Revenue was $18,265 million, an increase of $877 million, or 5.0%.

• Retail segment sales were $17,982 million, an increase of $852 million, or 5.0%.

  • Food Retail (Loblaw) same-stores sales increased by 4.5%.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 4.6%, with front store same-store sales growth of 1.8% and pharmacy same-store sales growth of 7.4%.

• E-commerce sales increased by 13.6%.

• Operating income was $1,065 million, an increase of $74 million, or 7.5%.

• Adjusted EBITDA² was $1,926 million, an increase of $80 million, or 4.3%.

• Retail segment adjusted gross profit percentage² was 30.6%, a decrease of 20 basis points.

• Net earnings available to common shareholders of the Company were $621 million, an increase of $65 million or 11.7%. Diluted net earnings per common share were $1.95, an increase of $0.26, or 15.4%.

• Adjusted net earnings available to common shareholders of the Company² were $719 million, an increase of $56 million, or 8.4%.

• Adjusted diluted net earnings per common share² were $2.26, an increase of $0.25 or 12.4%.

• Repurchased for cancellation 2.9 million common shares at a cost of $341 million and invested $676 million in capital expenditures, net of proceeds from property disposals. Free cash flow² used in the Retail segment was $663 million.

¹Interest paid is included in cash flows from operating activities under the Financial Services segment.

²Capital investments are the sum of fixed asset additions and intangible asset additions as presented in the Company’s condensed consolidated statements of cash flows.