Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) today announced its unaudited financial results for the first quarter ended March 23, 2024¹.
Loblaw started 2024 strong, with robust operational and financial results. The company’s focus on retail excellence boosted sales growth, reduced shrink, and increased earnings. Loblaw’s market-leading discount banners, private label brands, and personalized PC OptimumTM offers attracted more customers, leading to higher store traffic and significant market share gains in Food Retail. This drove revenue growth despite lower internal inflation. Increased Drug Retail sales reflected strong performance in front store beauty and cough and cold products. In March, Canada’s Consumer Price Index (“CPI”) for Food Purchased From Stores was 1.9%, the lowest in over two years, and below the headline CPI for the first quarter of 2024. Loblaw’s internal food inflation remained below Canada’s CPI for Food Purchased From Stores.
“We continued to deliver value, quality, and service across our various banners, leading to more customers choosing our stores,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our dedicated colleagues, strategic plan, and unique assets position us well to best serve the needs of Canadians today and in the future.”
2024 First Quarter Highlights
- Revenue: $13,581 million, up $586 million (4.5%).
- Retail Segment Sales: $13,290 million, up $555 million (4.4%).
- Food Retail Same-Store Sales: Increased by 3.4%.
- Drug Retail Same-Store Sales: Increased by 4.0%, with front store sales up 0.7% and pharmacy/healthcare services sales up 7.3%.
- E-commerce Sales: Increased by 16.1%.
- Operating Income: $861 million, up $92 million (12.0%).
- Adjusted EBITDA²: $1,544 million, up $96 million (6.6%).
- Retail Segment Gross Profit Percentage²: 31.6%, up 30 basis points, primarily due to improved Drug Retail margins and lower shrink.
- Net Earnings Available to Common Shareholders: $459 million, up $41 million (9.8%).
- Diluted Net Earnings Per Common Share: $1.47, up $0.18 (14.0%).
- Adjusted Net Earnings Available to Common Shareholders²: $537 million, up $32 million (6.3%).
- Adjusted Diluted Net Earnings Per Common Share²: $1.72, up $0.17 (11.0%).
- Net Capital Investments: $348 million, reflecting gross capital investments of $387 million, net of $39 million from property disposals.
- Share Repurchases: 3.2 million common shares for $470 million.
- Free Cash Flow² Used in Retail Segment: $359 million.
- Dividend Increase: Thirteenth consecutive annual increase to the quarterly common share dividend from $0.446 to $0.513 per common share, a 15.0% increase.
¹This news release contains forward-looking information. See “Forward-Looking Statements” section of this release and the Company’s 2024 First Quarter Report to Shareholders for a discussion of factors that could cause actual results to differ materially from forecasts and projections. This release should be read in conjunction with Loblaw Companies Limited’s filings with securities regulators, available at sedarplus.ca and loblaw.ca.
²See “Non-GAAP and Other Financial Measures” section in Appendix 1 of this release for a reconciliation of these measures to the most comparable GAAP measures.
³Refer to the “Forward-Looking Statements” section of this release and the Company’s 2024 First Quarter Report to Shareholders.
