Loblaw Companies Limited announced Thursday its unaudited financial results for the fourth quarter ended December 28, 2024 and the release of its 2024 Annual Report, saying its portfolio of businesses remains strong and well-positioned as economic pressures continue to drive consumers to its banners.
“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.”
In the fourth quarter, the grocery giant saw revenue increase to $14.948 billion, an increase of $417 million, or 2.9%. On an annual basis, revenue was $61.014 billion, an increase of $1,485 million, or 2.5%.
Earlier this week, Loblaw announced it will invest $2.2 billion into the Canadian economy in 2025.This investment will help the Company improve access to more affordable food and healthcare services for Canadians, while creating an anticipated 8,000 jobs in communities across the country, it said.
The company said it anticipates similar levels of investment over the next five years – to invest more than $10 billion by 2030 – adding to the more than $8 billion the Company has invested since 2020 to improve and expand its network of stores and modernize its supply chain.
The company’s 2025 planned investments include:
- 80 new stores under the No Frills, Maxi, Shoppers Drug Mart, Pharmaprix and T&T banners, including approximately 50 hard discount stores;
- the renovation of more than 300 grocery and pharmacy locations, including adding approximately 100 new Shoppers Drug Mart pharmacy care clinics; and
- the continued development of the Company’s modernized supply chain, including the initial opening of the 1.2 million square foot facility in East Gwillimbury, Ontario.
“Loblaw’s portfolio of businesses remains strong and well-positioned as economic pressures continue to drive consumers to its banners, in search for value, quality, service and convenience. The Company’s best in class assets continue to meet customers’ everyday needs for food, health and wellness – supporting Loblaw’s purpose: helping Canadians Live Life Well. The Company will continue to focus on three strategic pillars in 2025: delivering retail excellence; driving growth; and investing for the future,” said the company in a news release announcing its financial results.
“Loblaw creates value through disciplined execution of core retail operations and by leveraging its scale and strategic assets. This retail excellence is underpinned by process and efficiency initiatives and helps grow sales, optimize gross margins, and reduce operating costs. The Company remains focused on strategic procurement opportunities to deliver reliability, improve product selection and drive economies of scale across its grocery and pharmacy network. Leveraging its customer loyalty program and more than one billion customer transactions across food, pharmacy, apparel, and financial services, Loblaw will increase its promotional effectiveness while delivering personalized value and unmatched service to Canadians. The Company will continue to invest in and refine its retail network to better meet customer needs and improve its overall profitability. This includes an increased focus on its Hard Discount business, where Loblaw has a unique opportunity to bring its NoFrills and Maxi stores to more communities and neighbourhoods across Canada. Management’s clear commitment to food and drug retail excellence, together with a sense of urgency, is focused on delivering consistent strong operational and financial performance.
“Loblaw continues to invest in targeted growth areas to further evolve and differentiate its portfolio of assets and generate competitive advantage. A differentiator and area of focus is Loblaw’s ability to digitally engage customers with a suite of proprietary assets – Loblaw Digital (including PC Express™), Loblaw Advance™, and PC Optimum, Canada’s strongest loyalty program. The Company will focus on enhancing these platforms across each of its businesses, improving the customer experience and functionality. In particular, the Company’s PC Optimum loyalty program continues to evolve, with more meaningful personalized offers, and more effective promotions, all toward strengthening the loyalty loop and increasing the share of customer wallet. The Company is also evolving and tailoring its store network to better serve customers. In 2024, the Company converted 38 stores to Hard Discount banners, opened 52 new food and drug retail locations, and added 78 new pharmacy care clinics across Canada, driving sales growth across its divisions.”
Loblaw said its ecommerce sales in the fourth quarter increased by 18.4% and net earnings available to common shareholders of the company were $462 million, a decrease of $79 million or 14.6%.
On an annual basis, ecommerce sales were about $3.9 billion, an increase of 16.9% and net earnings available to common shareholders of the company were $2.155 billion, an increase of $67 million or 3.2%.
Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as its largest retailer and private sector employer with more than 220,000 colleagues across the country. With over 1 billion transactions each year in its unmatched network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many of Canada’s favourite and most-trusted brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The Company’s loyalty program, PC Optimum, has more than 16 million active members and is one of Canada’s largest and best-loved reward programs.
