Loblaw Companies Ltd

Latest Results (12.03.2026):

Loblaw Companies Ltd — third quarter of 2025 (Q3 2025): Loblaw reported another quarter of revenue and profit growth driven by retail sales momentum and lower amortization expense. Revenue rose to $19,395 million (up 4.6% y/y) and net earnings attributable to shareholders were $794 million ($0.66 diluted EPS). Adjusted measures and retail operating metrics also improved, while comparisons were affected by prior‑year tax recoveries and one‑time items.

Key financials

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

Retail performance

Retail sales $19,082M (+4.5%). Food retail same‑store sales +2.0%; Drug retail same‑store sales +4.0%. Retail adjusted EBITDA was $2,116M (+6.8%); gross profit rose to $5,940M and gross margin increased to 31.1% (20 bps improvement), supported by shrink improvements and stronger traffic/baskets.

Financial Services

Financial Services revenue $403M (+5.5% y/y). Earnings before tax declined (Q3 EBT $49M) due largely to lapping a prior‑year PC Bank commodity tax recovery and higher customer acquisition/funding costs. Credit card receivables were $4,012M; annualized yield ~14.5% and credit loss rate ~4.3%.

Cash flow, investment and capital structure

Cash and cash equivalents were $1,350M at quarter end. Q3 free cash flow was $396M (down from $622M prior year), largely from working capital changes and higher interest/lease payments. Q3 capital spend $685M; year‑to‑date capital investments $1,340M. Retail debt to rolling year retail adjusted EBITDA remained 2.4x.

Adjusting and one‑time items affecting comparatives

Results benefited from substantially lower amortization of intangibles (Shoppers Drug Mart‑related amortization largely fully amortized), which boosted year‑over‑year operating comparisons. Offsetting this, Q3 comparisons were weakened by lapping prior‑year PC Bank commodity tax recoveries and costs related to the wind‑down of Theodore & Pringle optical activities.

Operational activity & capital allocation

Opened 27 food/drug stores and closed 7 in Q3; total stores 2,479 and total retail square footage 72.9M sq ft (+2.0% y/y). The company completed a four‑for‑one stock split in Q3 (effective Aug 18, 2025) and continued share repurchases, which modestly supported EPS growth.