Loblaw Companies Ltd

Latest Results (14.07.2026):

Loblaw Companies Ltd — third quarter of 2025: Loblaw reported consistent operational results for Q3 2025 with consolidated revenue of $19,395 million (up 4.6% year‑over‑year) and operating income of $1,376 million (up 4.2%). Adjusted EBITDA was $2,217 million (up 7.2%) and adjusted diluted net earnings per share were $0.69. Net earnings available to common shareholders were $794 million, or $0.66 diluted EPS. Retail sales drove the performance—retail revenue was $19,082 million with food same‑store sales +2.0% and drug same‑store sales +4.0%. Financial Services revenue rose modestly but segment pre‑tax earnings fell due to lapping of a prior‑year tax recovery. Free cash flow in the quarter was $396 million and the company completed a 4‑for‑1 stock split effective August 18, 2025.

Revenue and profit snapshot

Consolidated revenue $19,395M (+4.6% vs Q3 2024). Operating income $1,376M (+4.2%). Adjusted EBITDA $2,217M (+7.2%), adjusted EBITDA margin 11.4%. Net earnings available to common shareholders $794M ($0.66 diluted EPS); adjusted net earnings available $828M ($0.69 adjusted diluted EPS).

Retail segment performance

Retail sales $19,082M (+4.5%). Food retail same‑store sales +2.0%; drug retail same‑store sales +4.0%. Retail gross profit $5,940M (+5.3%) and gross profit margin improved to ~31.1% (up ~20 bps). Retail adjusted EBITDA $2,116M (+6.8%). Openings/closings: 27 stores opened and 7 closed in Q3; total retail square footage +2.0% YoY to 72.9M sq ft.

Financial Services highlights

Financial Services revenue $403M (+5.5%). Earnings before income taxes for the segment were $49M in Q3 (vs $201M prior year) largely due to lapping a prior‑year $165M recovery related to a PC Bank commodity tax matter and higher customer acquisition costs. Credit card receivables were $4,012M and the annualized yield on gross receivables was ~14.5%.

One‑time / adjusting items affecting comparatives

Year‑over‑year comparisons were affected by several adjusting items: prior‑year PC Bank commodity tax recovery (~$125–$165M impact depending on scope), wind‑down costs for Theodore & Pringle (~$22–$30M), and a year‑over‑year reduction in amortization (intangible amortization related to the 2014 Shoppers acquisition largely fully amortized, driving favourable comparatives).

Cash flow, capex and balance sheet

Cash flows from operations in Q3: $1,751M. Capital investments Q3: $685M. Free cash flow (quarter) $396M (down from $622M in Q3 2024). Cash and short‑term investments per KPI: $2,245M (as presented in KPIs). Total debt (including lease liabilities) was ~$21,077M; Retail debt to rolling‑year retail adjusted EBITDA 2.4x. Net interest and other financing charges rose to $273M in Q3.

Capital structure, shareholder actions and other items

Loblaw completed a 4‑for‑1 stock split effective August 18, 2025 and has been repurchasing shares (repurchases contributed favourably to EPS). Preferred Shares, Series B were redeemed Jan 8, 2025. DBRS upgraded trend to Positive; S&P and Morningstar/DBRS ratings remained investment grade.

Near‑term outlook notes

Management indicated continued focus on value offerings, PC Optimum loyalty, store expansions (~76 new stores targeted for the year, ~47 opened YTD) and ~100 pharmacy clinics for the year (55 opened YTD). Key risks called out include macroeconomic factors, IT/system implementations, supply chain, and regulatory/drug pricing changes.