Loblaw Companies Limited announced Wednesday its unaudited financial results for the third quarter ended October 4, 2025, saying it delivered another quarter of consistent operational and financial performance.
The combination of everyday value offerings, personalized PC Optimum loyalty rewards, impactful promotions, and new store openings drove higher levels of customer engagement. Canadians recognized its differentiated value, quality, service, and convenience across its nationwide network of stores and digital platforms, driving sales growth of $857 million in the quarter, said the grocery retailer.
It said the Food Retail business attracted more customers and larger baskets, resulting in both the Super Market and Hard Discount banners outperforming their peer group on tonnage market share growth in the quarter. The company said its Hard Discount and Real Canadian Superstore banners again outperformed conventional stores, benefitting from the consumer shift to value. The company opened 19 Maxi and NoFrills stores in the quarter, bringing discount options to more communities across the country.
In Drug Retail, Pharmacy and Healthcare Services contributed to strong results, led by specialty drug growth. Front store sales momentum continued in cosmetics and over-the-counter categories, which were only partially offset by the previously announced strategic exit from certain electronics items. Loblaw remains on track with its full-year plan to open approximately 76 new stores and 100 new pharmacy clinics, opening 47 new stores and 55 new pharmacy clinics year-to-date, providing access to affordable, quality groceries and healthcare to underserved communities across Canada, it explained.
“Our innovative customer programs and new store openings are delivering the value, quality, service and convenience that Canadians want, now more than ever,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our focus on retail excellence allows us to deliver on our commitments to our customers and invest for future growth, while delivering strong financial results.”
2025 THIRD QUARTER HIGHLIGHTS
- Revenue was $19,395 million, an increase of $857 million, or 4.6%.
- The sale of Wellwise by Shoppers (“Wellwise”) was completed in the first quarter of 2025. Revenue related to Wellwise in the third quarter of 2025 was nil (2024 – $27 million). Excluding the impact of revenue related to Wellwise, revenue increased by 4.8%.
- Retail segment sales were $19,082 million, an increase of $823 million, or 4.5%.
- Food Retail (Loblaw) sales were $13,588 million, an increase of 4.8%, and same-store sales increased by 2.0%.
- Drug Retail (Shoppers Drug Mart) sales were $5,494 million, an increase of 3.8%, and same-store sales increased by 4.0%, with pharmacy and healthcare services same-store sales growth of 5.9% and front store same-store sales growth of 1.9%.
- E-commerce sales increased by 18.0%.
- Operating income was $1,376 million, an increase of $55 million, or 4.2%.
- Adjusted EBITDA was $2,217 million, an increase of $148 million, or 7.2%.
- Retail segment gross profit percentage was at 31.1%, an increase of 20 basis points, primarily driven by improvements in shrink.
- Net earnings available to common shareholders of the Company were $794 million, an increase of $17 million or 2.2%.Diluted net earnings per common share were $0.66, an increase of $0.03, or 4.8%. The increase included the impact of charges related to the wind-down of the Theodore & Pringle optical business of $22 million.
- Adjusted net earnings available to common shareholders of the Company were $828 million, an increase of $61 million, or 8.0%.
- Adjusted diluted net earnings per common share were $0.69, an increase of $0.07 or 11.3%.
- Net capital investments were $682 million, which reflects gross capital investments of $685 million, net of proceeds from property disposals of $3 million.
- Repurchased for cancellation 6.8 million common shares at a cost of $381 million. Free cash flow(²) from the
- Retail segment was $325 million.
- In the third quarter of 2025, the Company completed a four-for-one stock split of its outstanding common shares. The stock split was implemented by way of a stock dividend, with shareholders receiving three additional common shares for each common share held. The stock split was effective at the close of business on August 18, 2025, for shareholders of record as of the close of business on August 14, 2025. All share and per share amounts presented herein have been retrospectively adjusted to reflect the stock split.
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