Loblaw Reports Adjusted Diluted Net Earnings Per Common Share(²) Growth of 10.0% in the Fourth Quarter and 10.3% for the 2024 Fiscal Year

BRAMPTON, ONTARIO February 20, 2025 - Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the fourth quarter ended December 28, 2024(¹) and the release of its 2024 Annual Report. The 2024 Annual Report includes the Company’s audited financial statements and Management’s Discussion and Analysis (“MD&A”) for the fiscal year ended December 28, 2024.

In the fourth quarter of 2024, Loblaw maintained its focus on retail excellence and produced another quarter of strong operational and financial results. Customers continued to seek a combination of quality, value, service, and convenience, and recognized the strength of the Company’s offer across its store network. Growing customer engagement of personalized PC Optimum^TM loyalty offers, combined with impactful in-store promotions and more everyday value drove higher traffic and strong market share gains in Food Retail. In Drug Retail, Pharmacy and Healthcare Services continued to perform well. Front Store sales reflected growth across the beauty categories, led by prestige. As expected, this was offset by the impact from the exit from the sale of certain items in the electronics category. Over the 2024 fiscal year, the Company invested in its network, opening 52 new Drug and Food retail stores, and 78 new pharmacy care clinics. In 2025, Loblaw plans to further invest in its network by opening approximately 80 new food and drug stores, and 100 new clinics. The Company also marked a major milestone, with the opening of its first T&T^® Supermarket in the United States in the fourth quarter of 2024. Loblaw’s strategy, unique assets, and dedicated colleagues position it well to continue to serve the diverse needs of Canadians today and in the future.

“We are very pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on execution of our strategies and retail excellence,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “We are providing unmatched value which is resonating with Canadians. I am thankful for the commitment and contributions of our colleagues across the organization.”

2024 FOURTH QUARTER HIGHLIGHTS

• Revenue was $14,948 million, an increase of $417 million, or 2.9%.

• Retail segment sales were $14,579 million, an increase of $422 million, or 3.0%.Food Retail (Loblaw) same-stores sales increased by 2.5%, compared to 2.0% last year.

  • Food retail same-store sales growth was approximately 1.5% after excluding the favourable impact of the timing of Thanksgiving.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 1.3%, compared to 4.6% last year, with pharmacy and healthcare services same-store sales growth of 6.3%, partially offset by a decline in front store same-store sales of 3.1%.

• E-commerce sales increased by 18.4%.

• Operating income was $852 million, a decrease of $91 million, or 9.7%.

• Adjusted EBITDA(²) was $1,698 million, an increase of $65 million, or 4.0%.

• Retail segment gross profit percentage(²) was 30.9%, a decrease of 20 basis points.

• Net earnings available to common shareholders of the Company were $462 million, a decrease of $79 million or 14.6%.

• Diluted net earnings per common share were $1.52, a decrease of $0.20, or 11.6%. The decrease was primarily driven by a non-cash PC Optimum loyalty program charge of $129 million ($94 million, net of income taxes). This non-recurring charge represents the revaluation of the loyalty liability for outstanding points, reflecting higher PC Optimum member participation and higher redemption rates.

• Adjusted net earnings available to common shareholders of the Company(²) were $669 million, an increase of $39 million, or 6.2%.

• Adjusted diluted net earnings per common share(²) were $2.20, an increase of $0.20 or 10.0%.

• Net capital investments were $585 million, which reflects gross capital investments of $628 million, net of proceeds from property disposals of $43 million.

• Repurchased for cancellation 1.95 million common shares at a cost of $352 million. Free cash flow(²) from the Retail segment was $828 million.

2024 SELECT ANNUAL HIGHLIGHTS

• Revenue was $61,014 million, an increase of $1,485 million, or 2.5%.

• Food Retail same-store sales increased by 1.5% and Drug Retail same-store sales increased by 2.4%.

• E-commerce sales were approximately $3.9 billion, an increase of 16.9%.

• Net earnings available to common shareholders of the Company were $2,155 million, an increase of $67 million or 3.2%.

• Diluted net earnings per common share were $6.99, an increase of $0.47, or 7.2%.

• Adjusted net earnings available to common shareholders of the Company(²) were $2,637 million, an increase of $157 million, or 6.3%.

• Adjusted diluted net earnings per common share(²) were $8.55, an increase of $0.80, or 10.3%.

• Net capital investments were $1,837 million, which reflects gross capital investments of $2,200 million, net of proceeds from property disposals of $363 million.

• Repurchased for cancellation, 11.0 million common shares at a cost of $1,754 million. Free cash flow(²) from the Retail segment was $1,506 million.

(¹)This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2024 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 sedarplus.ca and at loblaw.ca.

(²) See “Non-GAAP and Other Financial Measures” section in Appendix 1 of this News Release, which includes the reconciliation of such non-GAAP and other financial measures to the most directly comparable GAAP measures.

(³) To be read in conjunction with the “Forward-Looking Statements” section of this News Release and the Company’s 2024 Annual Report.

(⁴) Packaging acceptable for collection in participating municipal programs only. All packaging may not be accepted for recycling in select areas. It is advised to check local municipality resources for more information on acceptability of packaging in a specific community.