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• Revenue Growth: 4.1%, reaching $14.1 billion.

• Adjusted EBITDA Growth: 3% increase to $1.6 billion.

• Adjusted EPS Growth: 9.3% to $1.88.

• Net Earnings Per Share (GAAP): Increased by 12.9%.

• Food Same Store Sales Growth: 2.2% increase.

• Drug Retail Sales Growth: Absolute sales increased by 4.4%, same store sales grew by 3.8%.

• Pharmacy Same Store Sales Growth: 6.4% increase.

• Online Sales Growth: Increased by 17.4% across retail businesses.

• Retail Gross Margin: Stable at 31.5%.

• SG&A Rate: Improved by 10 basis points.

• Free Cash Flow Use: $264 million in the retail segment.

• Common Shares Repurchased: $478.57 million worth.

• Dividend Increase: 10% increase, marking the 14th consecutive annual increase.

• Return on Equity: 24.4%.

• Return on Capital: 11.8%.

• New Store Openings: Added 58 hard discount stores in 2024, opened 5 new hard discount banners, 4 new pharmacies, and a second T&T supermarket in downtown Toronto.

• Warning! GuruFocus has detected 2 Warning Sign with BXC.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Loblaw Companies Ltd (LBLCF) reported strong financial and operational performance in Q1 2025, with a consolidated revenue growth of 4.1% reaching $14.1 billion.

• Adjusted net earnings per share grew by 9.3% to $1.88, and on a GAAP basis, net earnings per share increased by 12.9%.

• The company saw a significant increase in online sales, which grew by 17.4% across its retail businesses, with delivery leading growth in the online grocery channel.

• Loblaw Companies Ltd (LBLCF) announced a 10% dividend increase, marking the 14th consecutive annual increase.

• The company is expanding its footprint with plans to open 50 new hard discount stores in 2025, reflecting strong consumer demand for value-focused retail options.

Negative Points

• Loblaw Companies Ltd (LBLCF) is facing higher than normal cost increases from global vendors, with some in the double digits, which could impact future profitability.

• The company is experiencing incremental pressure from higher commodity prices and a lower Canadian dollar, affecting cost structures.

• Tariff-related impacts are beginning to show up in shelf prices, potentially affecting consumer purchasing behavior.

• The company is still working on reducing shrink in its Shoppers Drug Mart stores, indicating ongoing challenges in managing inventory losses.

• Despite strong performance, the company acknowledges that Canadians are still under significant affordability pressures due to increased food costs over the past two years.