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

Loblaw Companies Limited announced its unaudited financial results for the first quarter ended March 22, 2025.

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™ loyalty offers, and impactful promotions drove continued sales momentum and market share gains, underpinned by positive unit sales and larger baskets in Food Retail, according to a press release.

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.

To view the full release directly from the retailer, click here.

Deli will continue to bring the latest industry new direct to your inbox, so stay tuned.