BRAMPTON, ONTARIO July 25, 2024 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the second quarter ended June 15, 2024¹.

Loblaw’s results in the second quarter of 2024 reflected strong operational performance and the impact of the settlement of the bread price-fixing class actions commenced in 2017 which negatively impacted net earnings by $121 million. For details regarding the settlement, please see the Company’s news release here.

In the quarter, Canadian consumers remained focused on value and responded favourably to Loblaw’s market leading banners, private label brands, and personalized PC Optimum^TM offers. Loblaw maintained its focus on retail excellence across its businesses, driving sales growth, and maintaining a careful focus on cost control. Drug Retail sales continued to outperform Food Retail. Drug front store sales reflected continued strength in the beauty category but were pressured by the Company’s exit from certain low margin electronics categories. Pharmacy sales growth rates returned to more normal levels, reflecting ongoing momentum in new healthcare services. Food Retail sales reflected increased customer visits in the quarter, despite lapping very strong sales growth last year. Food sales growth was led by the ongoing strength of the Company’s Maxi and NoFrills hard discount stores. A sharp focus on value was reflected in another sequential reduction in the Company’s internal inflation rate. Food inflation rates have been declining and remain below Canada’s total household inflation rate, as Canada’s Consumer Price Index (“CPI”) for Food Purchased From Stores declined for thesixthconsecutive quarter.

“Our commitment to provide value, quality, and service has been recognized by our customers, as traffic was up across our network of stores,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “We are grateful for the ongoing trust of our customers as their preferred retailer for everyday needs.”

2024 SECOND QUARTER HIGHLIGHTS

• Revenue was $13,947 million, an increase of $209 million, or 1.5%.

• Retail segment sales were $13,658 million, an increase of $187 million, or 1.4%.

  • Food Retail (Loblaw) same-stores sales increased by 0.2%, compared to 6.1% last year .

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 1.5%, compared to 5.7% last year, with pharmacy and healthcare services same-store sales growth of 5.4%, partially offset by a decline in front store same-store sales of 2.4%.

• E-commerce sales increased by 14.2%.

• Operating income was $868 million, a decrease of $59 million, or 6.4%.

• Adjusted EBITDA² was $1,713 million, an increase of $73 million, or 4.5%.

• Retail segment gross profit percentage² was 32.0%, an increase of 90 basis points, primarily driven by improvements in shrink and Drug Retail gross margins mainly due to sales mix.

• Net earnings available to common shareholders of the Company were $457 million, a decrease of $51 million or 10.0%. The decrease was primarily driven by charges related to the settlement of class action lawsuits.

• Diluted net earnings per common share were $1.48, a decrease of $0.10, or 6.3%. Adjusted net earnings available to common shareholders of the Company² were $664 million, an increase of $38 million, or 6.1%. Adjusted diluted net earnings per common share² were $2.15, an increase of $0.21 or 10.8%.

• Net capital investments were $475 million, which reflects gross capital investments of $495 million, net of proceeds from property disposals of $20 million.

• Repurchased for cancellation 3.2 million common shares at a cost of $482 million. Free cash flow² from the Retail segment was $475 million.

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2024 Second 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 sedarplus.ca 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 and other financial 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 2024 Second Quarter Report to Shareholders.