Loblaw Reports Revenue Growth of 4.6% in the Third Quarter

Executive Summary

• Loblaw Companies Limited reported unaudited Q3 2025 revenue of C$19.395 b, up 4.6% year‑over‑year, driven by strong food and drug retail performance and an 18% jump in e‑commerce sales.
• Adjusted EBITDA rose 7.2% to C$2.217 b; net earnings available to common shareholders increased 2.2% to C$794 m (diluted EPS $0.66).
• The company repurchased 6.8 m shares for C$381 m, declared a quarterly dividend of $0.141075 per share, and completed a four‑for‑one stock split in August 2025.

Key Details

• Revenue: C$19.395 b (↑ 4.6% YoY); Retail segment sales C$19.082 b (↑ 4.5%).
• Segment Highlights:
• Food Retail sales C$13.588 b (↑ 4.8%; same‑store +2.0%).
• Drug Retail sales C$5.494 b (↑ 3.8%; same‑store +4.0%).
• E‑commerce sales ↑ 18.0% YoY.
• Profitability:
• Operating income C$1.376 b (↑ 4.2%).
• Adjusted EBITDA C$2.217 b (↑ 7.2%).
• Retail gross profit margin 31.1% (up 20 bps).
• Earnings per Share: Diluted EPS $0.66 (↑ 4.8%); adjusted diluted EPS $0.69 (↑ 11.3%).
• Capital Expenditure: Net capital investments C$682 m (gross C$685 m, net of C$3 m disposals).
• Share Repurchases: 6.8 m shares cancelled for C$381 m; YTD total 24.9 m shares for C$1.283 b.
• Dividend: Quarterly dividend $0.141075 per common share, payable Dec 30 2025.
• Stock Split: Four‑for‑one split (effective Aug 18 2025); all per‑share figures retroactively adjusted.
• Outlook: Anticipates full‑year adjusted EPS growth to move from high single‑digits to low double‑digits (excluding 53rd week impact). Plans C$1.9 b net capital spending for FY 2025 and continued share repurchases.

Notable Quotes

“Our innovative customer programs and new store openings are delivering the value, quality, service and convenience that Canadians want… while delivering strong financial results.” – Per Bank, President & CEO.