BRAMPTON, ONTARIO November 13, 2024 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the third quarter ended October 5, 2024(¹).

Loblaw delivered another quarter of consistent operational and financial performance as it continued to provide value to Canadians across its retail network, while maintaining its focus on retail excellence. The reversal of a charge related to a previous President’s Choice Bank (“PC Bank”) commodity tax matter positively impacted net earnings by $125 million. Drug Retail sales growth outperformed Food Retail in the quarter. 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 and lower customer spend on convenience items. Pharmacy and healthcare services revenue increased due to ongoing strength in acute and chronic prescriptions. Food Retail stores attracted increased customer visits in the quarter, despite Thanksgiving holiday sales shifting into the fourth quarter this year. Food sales growth reflected the ongoing strength of the Company’s Maxi and NoFrills hard discount stores, and its growing selection of multicultural foods across its banners, anchored by strong performance in the T&T banner. In the quarter, the Company continued to invest in its network of stores, including opening 25 new hard discount stores and piloting two new ultra-discount no name^® stores.

“Increased customer traffic to our stores this quarter demonstrates that we are delivering the value, quality and service our customers count on,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our relentless focus on retail excellence allows us to provide great value to Canadians and invest to deliver future growth, while delivering strong financial results.”

2024 THIRD QUARTER HIGHLIGHTS

• Revenue was $18,538 million, an increase of $273 million, or 1.5%.

• Retail segment sales were $18,259 million, an increase of $277 million, or 1.5%.

  • Food Retail (Loblaw) same-stores sales increased by 0.5%, compared to 4.5% last year. Food retail same-store sales growth was approximately 1.3% after excluding the unfavourable impact of the timing of Thanksgiving.

  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 2.9%, 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 0.5%. The timing of Thanksgiving had a nominal impact on same-store sales growth for Drug retail in the third quarter of 2024.

• E-commerce sales increased by 18.5%.

• Operating income was $1,321 million, an increase of $256 million, or 24.0%.

• Adjusted EBITDA(²) was $2,069 million, an increase of $143 million, or 7.4%.

• Retail segment gross profit percentage(²) was 30.9%, an increase of 30 basis points, primarily driven by improvements in shrink.

• Net earnings available to common shareholders of the Company were $777 million, an increase of $156 million or 25.1%.

• Diluted net earnings per common share were $2.53, an increase of $0.58, or 29.7%. The increase included the recovery of $165 million ($125 million, net of income taxes) related to a PC Bank commodity tax matter.

• Adjusted net earnings available to common shareholders of the Company(²) were $767 million, an increase of $48 million, or 6.7%.

• Adjusted diluted net earnings per common share(²) were $2.50, an increase of $0.24 or 10.6%.

• Net capital investments were $429 million, which reflects gross capital investments of $690 million, net of proceeds from property disposals of $261 million.

• Repurchased for cancellation 2.65 million common shares at a cost of $450 million. Free cash flow(²) from the Retail segment was $562 million.

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

⁴Packaging acceptable for collection in participating municipal programs only.