Loblaw Reports Revenue Growth of 4.1% and Adjusted Diluted Net Earnings Per Common Share Growth of 9.3% in the First Quarter

BRAMPTON, ONTARIO April 30, 2025 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the first quarter ended March 22, 2025.¹

During the quarter, Loblaw continued its focus on providing Canadians with quality, value, service, and convenience, across its coast-to-coast network of stores and digital platforms. Strong customer response to everyday value offerings, personalized PC Optimum^TM loyalty offers, and impactful promotions drove continued sales momentum and market share gains, underpinned by positive unit sales and larger baskets in Food Retail. In Drug Retail, pharmacy and healthcare services performed well, reflecting continued strong growth in prescription volumes and specialty drugs. Front store sales were strong across beauty categories and reflected an extended cough, cold and flu season, partially offset by the exit from certain items in the electronics category. Delivering against its capital investment plans to open approximately 80 new stores and 100 new clinics in 2025, the Company brought Hard Discount banners to five new communities and opened four new pharmacies with expanded clinics in the quarter, and opened a second T&T Supermarket in downtown Toronto.

“We will continue to support Canadian companies and brands, highlight Canadian-made products in our stores, and deliver value across our network,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our commitment to retail excellence is resonating with customers and allowed us to deliver consistent financial results.”

2025 FIRST QUARTER HIGHLIGHTS

• Revenue was $14,135 million, an increase of $554 million, or 4.1%.
• Retail segment sales were $13,837 million, an increase of $547 million, or 4.1%.
  • Food Retail (Loblaw) same-stores sales increased by 2.2%.
  • Drug Retail (Shoppers Drug Mart) same-store sales increased by 3.8%, with pharmacy and healthcare services same-store sales growth of 6.4% and front store same-store sales growth of 0.9%.
• E-commerce sales increased by 17.4%.
• Operating income was $906 million, an increase of $45 million, or 5.2%.
• Adjusted EBITDA² was $1,591 million, an increase of $47 million, or 3.0%.
• Retail segment gross profit percentage² was 31.5%, a decrease of 10 basis points.
• Net earnings available to common shareholders of the Company were $503 million, an increase of $44 million or 9.6%.
• Diluted net earnings per common share were $1.66, an increase of $0.19, or 12.9%.
• Adjusted net earnings available to common shareholders of the Company² were $570 million, an increase of $33 million, or 6.1%.
• Adjusted diluted net earnings per common share² were $1.88, an increase of $0.16 or 9.3%.
• Net capital investments were $191 million, which reflects gross capital investments of $246 million, net of proceeds from property disposals of $55 million.
• Repurchased for cancellation 2.49 million common shares at a cost of $457 million. Free cash flow² used in the Retail segment was $264 million.
• Quarterly common share dividend increased from $0.513 to $0.5643 per common share, an increase of 10%, marking the fourteenth consecutive year of dividend increases.

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2025 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 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 2025 First Quarter Report to Shareholders.

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