Loblaw Companies Limited has announced its unaudited financial results for the first quarter ended March 22, 2025,
During the quarter, Loblaw said it 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. In Drug Retail, pharmacy and healthcare services performed well, reflecting continued strong growth in prescription volumes and specialty drugs,” it said in a news release.
“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 EBITDA was $1,591 million, an increase of $47 million, or 3.0%.
- Retail segment gross profit percentage 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 Company were $570 million, an increase of $33 million, or 6.1%.
- Adjusted diluted net earnings per common share 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 flow 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.
RETAIL SEGMENT
- Retail segment sales in the first quarter of 2025 were $13,837 million, an increase of $547 million, or 4.1%.
- Food Retail (Loblaw) sales were $9,787 million and same-store sales grew by 2.2% (2024 – 3.4%).
- The Consumer Price Index as measured by The Consumer Price Index for Food Purchased From Stores was 2.6% (2024 – 2.6%) which was in line with the Company’s internal food inflation; and
- Food Retail traffic was flat and basket size increased.
- Drug Retail (Shoppers Drug Mart) sales were $4,050 million, and same-store sales grew by 3.8% (2024 – 4.0%), with pharmacy and healthcare services same-store sales growth of 6.4% (2024 – 7.3%) and front store same-store sales growth of 0.9% (2024 – 0.7%).
- Pharmacy and healthcare services same-store sales growth was 6.4% (2024 – 7.3%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 2.3% (2024 – 4.0%) and the average prescription value increased by 4.4% (2024 – 2.0%).
- Front store same-store sales growth was 0.9% (2024 – 0.7%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter (“OTC”) products, partially offset by the decision to exit certain low margin electronics categories.
- Food Retail (Loblaw) sales were $9,787 million and same-store sales grew by 2.2% (2024 – 3.4%).
Loblaw said it will “continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. The Company’s businesses remain well positioned to meet the everyday needs of Canadians.”
In 2025, the company’s results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, the company said it continues to expect:
- its Retail business to grow earnings faster than sales;
- adjusted net earnings per common share growth in the high single-digits;
- to continue investing in our store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and
- to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases.
In the first quarter of 2025, 10 food and drug stores were opened and 4 food and drug stores were closed. Retail square footage was 72.3 million square feet, a net increase of 1.0 million square feet, or 1.4% compared to the first quarter of 2024.
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