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Edmonton Journal
25-07-2025
- Business
- Edmonton Journal
Canadians shunning products hit by retaliatory tariffs, Loblaw CEO says
Sales of products that Loblaw Cos. Ltd. has labelled in-store as being affected by tariffs have declined by more than 15 per cent in recent weeks and the trend is accelerating, the grocer's chief executive said during an earnings call with analysts on Thursday. Article content Loblaw has added a 'T' symbol on its shelves to identify items, particularly products coming into Canada from the U.S., that are directly subject to retaliatory tariffs, impacting their price. Chief executive Per Bank said the initiative is unique to Loblaw. Article content Article content 'It has been successful on several levels, as intended, to help our customers by clearly identifying tariff items, supporting Canada and saving money behind the scenes,' he said, adding that it is also incentivizing suppliers to mitigate the tariff impact, to avoid the T label designations. Article content Article content The move follows a previous initiative in which the grocer labelled Canadian products to help customers easily identify them. Bank said the company's data shows that Canadians are responding positively to these initiatives. Article content Bank said the retailer has doubled down on its efforts to support Canadian products, adding more than 100 new Canadian vendors. Article content 'Adding 130 new Canadian vendors into our ecosystem this year to strengthen our local supply chain … brings even more choice to our shelves, further strengthening our base of Canadian suppliers that remains so important to us,' he said. Article content Article content Bank said it is a misconception that U.S. tariffs are no longer a factor in groceries, adding that 'nothing could actually be further from the truth.' Article content Article content He said tariff countermeasures remain in place and about a third of all supplier submissions for cost increases have been tariff-related. Article content On Thursday, the company reported increased revenues in the second quarter, attributing the growth to higher customer traffic and unit sales. Article content For the quarter ended June 14, Loblaw reported $14.67 billion in revenue, a 5.2 per cent increase from the prior year. Article content Retail sales also increased by 5.4 per cent to $14.39 billion as it opened new locations including 10 new stores and 12 pharmacy clinics during the quarter. Article content 'More Canadians are shopping in our stores. Actually, traffic is up, unit sales are up and basket growth was positive in the quarter,' Bank said during the earnings call.
Hamilton Spectator
24-07-2025
- Business
- Hamilton Spectator
Loblaw's Q2 profit rises as shoppers continue to flock to discount
A slew of new discount stores helped push profit at Loblaw Cos. Ltd. higher in the second quarter, as shoppers continue to seek lower-priced products, a trend the company's CEO says will remain for the long term. 'Our hard discount stores: They're doing well and they're still leading and doing better compared to the rest of the portfolio,' Loblaw chief executive Per Bank told analysts on a conference call Thursday. He said Canadians are increasingly seeking promotions and private-label products, driving up sales at the grocer's discount stores. 'The global shift toward discount retail is a long-term trend and we are leading it here in Canada,' Bank said. Earlier this year, Loblaw announced its plan to spend $2.2 billion, opening 80 new grocery and pharmacy stores, with about 50 of them being smaller-format discount stores. So far, the company has opened 20 new stores and 23 new pharmacy clinics. The parent company of Loblaws and Shoppers Drug Mart said its net earnings available to common shareholders amounted to $714 million or $2.37 per diluted share for the quarter ended June 14. The result was up from a profit of $457 million or $1.48 per diluted share in the second quarter of 2024. Despite the upbeat quarterly results, Loblaw did not upgrade its guidance, with chief financial officer Richard Dufresne saying it was too early to do so. 'There's still a lot of uncertainty out there, so we thought it'd be more prudent to wait,' he told analysts. The company could update its financial guidance in its third-quarter results, Dufresne said. Bank said the company is continuing to strengthen its local supply chain, onboarding another 130 Canadian vendors onto its network. The ongoing tariff dispute with the United States and the trend of shoppers favouring Canadian made products has led many grocers to increase their local offerings. Earlier this year, Loblaw began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs with a 'T' symbol. It also added a 'swap and shop' feature to its loyalty app to help shoppers find Canadian products more easily. 'As intended, it has helped our customers by clearly identifying tariff items, supporting Canada, and saving money,' Bank said. Sales volume on items labelled with a 'T' were down more than 15 per cent, he said. 'There's some misconception that the tariffs are no longer a factor in grocery,' he said. 'Nothing could actually be further from the truth.' Bank said about a third of all supplier cost increase requests are tariff related. On an adjusted basis, Loblaw said it earned $2.40 per diluted share in its latest quarter, up from an adjusted profit of $2.15 per diluted share a year earlier. Analysts on average had expected an adjusted profit of $2.33 per diluted share, according to LSEG Data & Analytics. Revenue for the quarter totalled $14.7 billion, up from $13.9 billion, as food retail same-store sales rose by 3.5 per cent. The company said sales growth was driven by new store openings and improved same-store sales, with 'impactful promotions driving higher customer engagement.' Drug retail same-store sales rose 4.1 per cent, with pharmacy and health care services same-store sales up 6.2 per cent, and front store same-store sales increasing 1.7 per cent. RBC analyst Irene Nattel called it 'another solid quarter' for the company, noting food revenues were 'a string bean ahead of forecast.' Separately, Loblaw announced a four-for-one stock split, citing continued affordability and accessibility of its shares for investors. Over the past year, Loblaw shares have risen more than 30 per cent to trade just above $220. This report by The Canadian Press was first published July 24, 2025. Companies in this story: (TSX: L)
Cision Canada
24-07-2025
- Business
- Cision Canada
Loblaw Reports Revenue Growth of 5.2% in the Second Quarter, Reflecting Higher Customer Traffic and Unit Sales, and Larger Baskets Français
BRAMPTON, ON, July 24, 2025 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") announced today its unaudited financial results for the second quarter ended June 14, 2025. (1) Loblaw delivered strong performance this quarter by continuing to provide Canadians with quality, value, service, and convenience across its nationwide network of stores and digital platforms. Strong sales growth was driven by new store openings and improved same-store sales, with everyday value offerings, personalized PC Optimum™ loyalty rewards, and impactful promotions driving higher customer engagement. In the Food Retail business, consumers continued to focus on value, which resulted in outperformance by Hard Discount and Real Canadian Superstores banners. Same-store traffic, basket size, and item count all increased compared to the same quarter last year. Food Retail tonnage volume also increased, reflecting solid market share gains within both discount and conventional segments. In Drug Retail, robust pharmacy and healthcare services drove continued strength, led by specialty drug growth. Front store sales momentum continued, particularly in prestige beauty categories, partially offset by the strategic exit from certain electronics items. Loblaw advanced its full-year plan to open approximately 80 new stores and 100 new pharmacy clinics, providing access to affordable, quality groceries and healthcare to more communities across Canada. This included opening 10 stores and 12 pharmacy clinics in the quarter, bringing the year-to-date total to 20 new stores and 23 new pharmacy clinics. In addition, the Company continued to successfully execute the ramp-up of its East Gwillimbury distribution centre. Loblaw also separately announced today a 4-for-1 common share stock split to ensure its common shares remain accessible to retail investors and the thousands of employees who participate in the Company's employee share ownership program. The stock split will not dilute shareholders' equity. The stock split will be implemented by way of a stock dividend. Further details are provided in the Company's separate news release of July 24, 2025. "Canadians are seeking value, quality and service and are increasingly rewarding us for delivering on their needs, resulting in sales and market share growth," said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. "We are bringing our value focus to more and more communities across Canada through our new store openings, with 61 new stores opened since last year." 2025 SECOND QUARTER HIGHLIGHTS Revenue was $14,672 million, an increase of $725 million, or 5.2%. The sale of Wellwise by Shoppers™ (" Wellwise") was completed in the first quarter of 2025. Revenue related to Wellwise in the second quarter of 2025 was nil (2024 – $21 million). Excluding the impact of revenue related to Wellwise, revenue increased by 5.4%. Retail segment sales were $14,389 million, an increase of $731 million, or 5.4%. Food Retail (Loblaw) same-stores sales increased by 3.5%. Drug Retail (Shoppers Drug Mart) same-store sales increased by 4.1%, with pharmacy and healthcare services same-store sales growth of 6.2% and front store same-store sales growth of 1.7%. E-commerce sales increased by 17.5%. Operating income was $1,239 million, an increase of $371 million, or 42.7%. Adjusted EBITDA (2) was $1,840 million, an increase of $127 million, or 7.4%. Retail segment gross profit percentage (2) was stable at 32.0%. Net earnings available to common shareholders of the Company were $714 million, an increase of $257 million or 56.2%. Diluted net earnings per common share were $2.37, an increase of $0.89, or 60.1%. The increase was primarily driven by the impact of lower costs related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") which are now fully amortized and lapping of prior year charges. Adjusted net earnings available to common shareholders of the Company (2) were $721 million, an increase of $57 million, or 8.6%. Adjusted diluted net earnings per common share (2) were $2.40, an increase of $0.25 or 11.6%. Net capital investments were $239 million, which reflects gross capital investments of $409 million, net of proceeds from property disposals of $170 million. Repurchased for cancellation 2.05 million common shares at a cost of $445 million. Free cash flow (2) from the Retail segment was $640 million. Subsequent to the end of the second quarter of 2025, the Company's Board of Directors approved a 4-for-1 stock split of the Company's outstanding common shares. The stock split will be implemented by way of a stock dividend where the Company will issue to shareholders three additional common shares for each common share held. The stock split will be effective at the close of business on August 18, 2025 for shareholders of record as of the close of business on August 14, 2025. For details regarding the stock split, please see the Company's news release at The following table provides key performance metrics for the Company by segment. 2025 2024 (12 weeks) (12 weeks) For the periods ended June 14, 2025 and June 15, 2024 Retail Financial Services Elimi- nations Total Retail Financial Services Elimi- nations Total (millions of Canadian dollars except where otherwise indicated) Revenue $ 14,389 $ 377 $ (94) $ 14,672 $ 13,658 $ 367 $ (78) $ 13,947 Gross profit (2) $ 4,608 $ 335 $ (94) $ 4,849 $ 4,370 $ 329 $ (78) $ 4,621 Gross profit % (2) 32.0 % N/A — % 33.0 % 32.0 % N/A — % 33.1 % Operating income $ 1,170 $ 69 $ — $ 1,239 $ 815 $ 53 $ — $ 868 Adjusted operating income (2) 1,180 69 — 1,249 1,096 53 — 1,149 Adjusted EBITDA (2) $ 1,759 $ 81 $ — $ 1,840 $ 1,649 $ 64 $ — $ 1,713 Adjusted EBITDA margin (2) 12.2 % N/A — % 12.5 % 12.1 % N/A — % 12.3 % Net interest expense and other financing charges $ 173 $ 39 $ — $ 212 $ 153 $ 37 $ — $ 190 Earnings before income taxes $ 997 $ 30 $ — $ 1,027 $ 662 $ 16 $ — $ 678 Income taxes $ 270 $ 180 Adjusted income taxes (2) 273 254 Net earnings attributable to non-controlling interests $ 43 $ 38 Prescribed dividends on preferred shares in share capital — 3 Net earnings available to common shareholders of the Company $ 714 $ 457 Adjusted net earnings available to common shareholders of the Company (2) 721 664 Diluted net earnings per common share ($) $ 2.37 $ 1.48 Adjusted diluted net earnings per common share (2) ($) $ 2.40 $ 2.15 Diluted weighted average common shares outstanding (in millions) 300.9 308.8 The following table provides a breakdown of the Company's total and same-store sales for the Retail segment. Retail segment sales in the second quarter of 2025 were $14,389 million, an increase of $731 million, or 5.4%. Food Retail (Loblaw) sales were $10,213 million and same-store sales grew by 3.5% (2024 – 0.2%). The Company's internal food inflation was lower than the Consumer Price Index for Food Purchased From Stores of 3.3% (2024 – 1.7%); and Food Retail traffic increased and basket size increased. Drug Retail (Shoppers Drug Mart) sales were $4,176 million, and same-store sales grew by 4.1% (2024 – 1.5%), with pharmacy and healthcare services same-store sales growth of 6.2% (2024 – 5.4%) and front store same-store sales growth of 1.7% (2024 – decline of 2.4%). Pharmacy and healthcare services same-store sales growth was 6.2% (2024 – 5.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 3.1% (2024 – 2.1%) and the average prescription value increased by 3.9% (2024 – 1.9%). Front store same-store sales growth was 1.7% (2024 – decline of 2.4%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the second quarter of 2025, 10 food and drug stores were opened and 1 food and drug store was closed. Retail square footage was 72.5 million square feet, a net increase of 1.2 million square feet, or 1.7% compared to the second quarter of 2024. Operating income in the second quarter of 2025 was $1,170 million, an increase of $355 million, or 43.6%. Gross profit (2) in the second quarter of 2025 was $4,608 million, an increase of $238 million, or 5.4%. The gross profit percentage (2) of 32.0% was stable, primarily driven by improvements in shrink, offset by changes in sales mix in Drug Retail pharmacy categories. Adjusted EBITDA (2) in the second quarter of 2025 was $1,759 million, an increase of $110 million, or 6.7%. The increase was driven by an increase in gross profit (2), partially offset by an increase in selling, general and administrative expenses ("SG&A"). SG&A as a percentage of sales was 19.8%, a favourable decrease of 10 basis points, primarily due to operating leverage from higher sales and the year-over-year impact of certain real estate activities, partially offset by incremental costs related to opening new stores and the automated distribution facility. Depreciation and amortization in the second quarter of 2025 was $588 million, a decrease of $80 million or 12.0%, primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart which are now fully amortized, partially offset by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group ("Lifemark") of $9 million (2024 – $115 million). FINANCIAL SERVICES SEGMENT Revenue in the second quarter of 2025 was $377 million, an increase of $10 million or 2.7%. The increase was primarily driven by higher sales attributable to The Mobile Shop™ and higher insurance commission income, partially offset by lower interest income. Earnings before income taxes in the second quarter of 2025 were $30 million, an increase of $14 million or 87.5%. The increase was primarily driven by higher revenue described above, lower operating costs and lower credit card receivable charge-offs. This increase was partially offset by higher loyalty program costs. OUTLOOK (3) Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. The Company's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, the Company's results will include the impact of a 53 rd week, which is expected to benefit adjusted net earnings per common share (2) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53 rd week, the Company continues to expect: its Retail business to grow earnings faster than sales; adjusted net earnings per common share (2) growth in the high single-digits; to continue investing in our store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") In the second quarter of 2025, the Company continued to progress its two key pillars that underpin the Company's commitment to Canada's prosperity – fighting climate change and advancing social equity. Notably, the renewable energy purchase agreement between Loblaw and TC Energy Corporation came into effect in 2025. This agreement ensures that 100% of the electricity that the Company purchases directly for its supermarkets, drug stores, offices and distribution centers at over 300 sites in Alberta is sourced from wind and solar power. And the 2025 Shoppers Drug Mart® Run for Women drew participants and fundraisers across 18 communities. With over 29,000 participants, this event successfully raised more than $3.8 million to support local women's mental health programs throughout Canada. During the second quarter of 2025, the Company repurchased 2.05 million common shares for cancellation at a cost of $445 million. On a year-to-date basis, the Company repurchased 4.5 million common shares for cancellation at a cost of $902 million. From time to time, the Company participates in an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. FORWARD-LOOKING STATEMENTS This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of IT systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Consolidated and Segment Results of Operations" and "Outlook" sections of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "should" and similar expressions, as they relate to the Company and its management. Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the Company's Management Discussion & Analysis ("MD&A") in the 2024 Annual Report, and the Company's Annual Information Form ("AIF") for the year ended December 28, 2024. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DECLARATION OF DIVIDENDS Subsequent to the end of the second quarter of 2025, the Board of Directors declared a quarterly dividend of $0.5643 per common share (on a pre-stock split basis), payable on October 1, 2025 to shareholders of record on September 15, 2025. EXCERPT OF NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures, as reconciled and fully described in Appendix 1 "Non-GAAP and Other Financial Measures" of this News Release. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards" or "GAAP"), and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with GAAP. The following table provides a summary of the differences between the Company's consolidated GAAP and Non-GAAP and other financial measures, which are reconciled and fully described in Appendix 1. (i) Net earnings available to common shareholders of the Company are net earnings attributable to shareholders of the Company, net of dividends declared on the Company's Second Preferred Shares, Series B that were redeemed on January 8, 2025. The following table provides a summary of the Company's adjusting items which are reconciled and fully described in Appendix 1. For the periods ended June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars) (12 weeks) (12 weeks) Operating income $ 1,239 $ 868 Add (deduct) impact of the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark $ 9 $ 115 Fair value adjustment on fuel and foreign currency contracts 2 2 Charges related to settlement of class action lawsuits — 164 Gain on sale of non-operating property (1) — Adjusting items $ 10 $ 281 Adjusted operating income (2) $ 1,249 $ 1,149 Net interest expense and other financing charges $ 212 $ 190 Income taxes $ 270 $ 180 Add the impact of the following: Tax impact of items included in adjusted earnings before taxes $ 3 $ 74 Adjusting items $ 3 $ 74 Adjusted income taxes (2) $ 273 $ 254 CORPORATE PROFILE 2024 Annual Report and 2025 Second Quarter Report to Shareholders The Company's 2024 Annual Report and 2025 Second Quarter Report to Shareholders are available in the "Investors" section of the Company's website at and on Investor Relations Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR+ and with the Office of the Superintendent of Financial Institutions (OSFI) as the primary regulator for the Company's subsidiary, President's Choice Bank ("PC Bank"). The Company holds an analyst call shortly following the release of its quarterly results. These calls are archived in the "Investors" section of the Company's website at Conference Call and Webcast Loblaw Companies Limited will host a conference call as well as an audio webcast on July 24, 2025 at 10:00 a.m. (ET). To access via tele-conference, please dial (416) 945-7677 or (888) 699-1199. The playback will be made available approximately two hours after the event at (289) 819-1450 or (888) 660-6345, access code: 28537#. To access via audio webcast, please go to the "Investor" section of Pre-registration will be available. Full details about the conference call and webcast are available on the Loblaw Companies Limited website at APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses the following non-GAAP and other financial measures and ratios: Retail segment gross profit; Retail segment adjusted gross profit; Retail segment adjusted gross profit percentage; adjusted earnings before income taxes, net interest expense and other financing charges and depreciation and amortization ("adjusted EBITDA"); adjusted EBITDA margin; adjusted operating income; adjusted net interest expense and other financing charges; adjusted income taxes; adjusted effective tax rate; adjusted net earnings available to common shareholders; adjusted diluted net earnings per common share, free cash flow, and same-store sales. The Company believes these non-GAAP and other financial measures and ratios provide useful information to both management and investors in measuring the financial performance and financial condition of the Company for the reasons outlined below. Management uses these and other non-GAAP and other financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company adjusts for these items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with GAAP. Retail Segment Gross Profit, Retail Segment Adjusted Gross Profit and Retail Segment Adjusted Gross Profit Percentage The following tables reconcile adjusted gross profit by segment to gross profit by segment, which is reconciled to revenue and cost of sales measures as reported in the consolidated statements of earnings for the periods ended as indicated. The Company believes that Retail segment gross profit and Retail segment adjusted gross profit are useful in assessing the Retail segment's underlying operating performance and in making decisions regarding the ongoing operations of the business. Retail segment adjusted gross profit percentage is calculated as Retail segment adjusted gross profit divided by Retail segment revenue. Adjusted Operating Income, Adjusted EBITDA and Adjusted EBITDA Margin The following tables reconcile adjusted operating income and adjusted EBITDA to operating income, which is reconciled to net earnings attributable to shareholders of the Company as reported in the consolidated statements of earnings for the periods ended as indicated. The Company believes that adjusted EBITDA is useful in assessing the performance of its ongoing operations and its ability to generate cash flows to fund its cash requirements, including the Company's capital investment program. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. 2025 2024 (12 weeks) (12 weeks) For the periods ended June 14, 2025 and June 15, 2024 Retail Financial Services Total Retail Financial Services Total (millions of Canadian dollars) Net earnings attributable to shareholders of the Company $ 714 $ 460 Add impact of the following: Non-controlling interests 43 38 Net interest expense and other financing charges 212 190 Income taxes 270 180 Operating income $ 1,170 $ 69 $ 1,239 $ 815 $ 53 $ 868 Add (deduct) impact of the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark $ 9 $ — $ 9 $ 115 $ — $ 115 Fair value adjustment on fuel and foreign currency contracts 2 — 2 2 — 2 Charges related to settlement of class action lawsuits — — — 164 — 164 Gain on sale of non-operating property (1) — (1) — — — Adjusting items $ 10 $ — $ 10 $ 281 $ — $ 281 Adjusted operating income $ 1,180 $ 69 $ 1,249 $ 1,096 $ 53 $ 1,149 Depreciation and amortization 588 12 600 668 11 679 Less: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark (9) — (9) (115) — (115) Adjusted EBITDA $ 1,759 $ 81 $ 1,840 $ 1,649 $ 64 $ 1,713 In addition to the items described in the Retail segment adjusted gross profit section above, when applicable, adjusted EBITDA was impacted by the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6,050 million of definite life intangible assets, which are being amortized over their estimated useful lives. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, of which $110 million and $6 million was recorded in the first and second quarters of 2025, respectively. Annual amortization will be approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. Fair value adjustment on fuel and foreign currency contracts The Company is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with the Company's commodity risk management policy, the Company enters into exchange traded futures contracts and forward contracts to minimize cost volatility relating to fuel prices and the U.S. dollar exchange rate. These derivatives are not acquired for trading or speculative purposes. Pursuant to the Company's derivative instruments accounting policy, changes in the fair value of these instruments, which include realized and unrealized gains and losses, are recorded in operating income. Despite the impact of accounting for these commodity and foreign currency derivatives on the Company's reported results, the derivatives have the economic impact of largely mitigating the associated risks arising from price and exchange rate fluctuations in the underlying commodities and U.S. dollar commitments. Charges related to settlement of class action lawsuits On July 24, 2024, the Company and George Weston Limited ("Weston") entered into binding Minutes of Settlement and on January 31, 2025, the Company and Weston entered into a Settlement Agreement to resolve nationwide class action lawsuits against them relating to their role in an industry-wide price-fixing arrangement involving certain packaged bread products. In the second quarter of 2024, charges of $164 million were recorded in SG&A, relating to the Company's portion of the total settlement and related costs. The Settlement Agreement was approved by the Ontario Superior Court of Justice in May 2025 and if approved by the court in Quebec, it will resolve all of the consumers' claims against the Company and Weston relating to this matter. Gain on sale of non-operating property In the second quarter of 2025, the Company recorded a gain related to the sale of a non-operating property to a third party of $1 million (2024 – nil). Adjusted Net Interest Expense and Other Financing Charges The following table reconciles adjusted net interest expense and other financing charges to net interest expense and other financing charges as reported in the consolidated statements of earnings for the periods ended as indicated. The Company believes that adjusted net interest expense and other financing charges is useful in assessing the Company's underlying financial performance and in making decisions regarding the financial operations of the business. Adjusted Income Taxes and Adjusted Effective Tax Rate The following table reconciles adjusted income taxes to income taxes as reported in the consolidated statements of earnings for the periods ended as indicated. The Company believes that adjusted income taxes is useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. Adjusted effective tax rate is calculated as adjusted income taxes divided by the sum of adjusted operating income less adjusted net interest expense and other financing charges. For the periods ended June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars except where otherwise indicated) (12 weeks) (12 weeks) Adjusted operating income (i) $ 1,249 $ 1,149 Adjusted net interest expense and other financing charges (i) 212 190 Adjusted earnings before taxes $ 1,037 $ 959 Income taxes $ 270 $ 180 Add impact of the following: Tax impact of items included in adjusted earnings before taxes (ii) 3 74 Adjusted income taxes $ 273 $ 254 Effective tax rate 26.3 % 26.5 % Adjusted effective tax rate 26.3 % 26.5 % (i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges in the tables above. (ii) See the adjusted operating income, adjusted EBITDA and adjusted EBITDA margin table and the adjusted net interest expense and other financing charges table above for a complete list of items included in adjusted earnings before taxes. Adjusted Net Earnings Available to Common Shareholders and Adjusted Diluted Net Earnings Per Common Share The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted net earnings attributable to shareholders of the Company to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company for the periods ended as indicated. The Company believes that adjusted net earnings available to common shareholders and adjusted diluted net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. For the periods ended June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars except where otherwise indicated) (12 weeks) (12 weeks) Net earnings attributable to shareholders of the Company $ 714 $ 460 Prescribed dividends on preferred shares in share capital — (3) Net earnings available to common shareholders of the Company $ 714 $ 457 Net earnings attributable to shareholders of the Company $ 714 $ 460 Adjusting items (refer to the following table) 7 207 Adjusted net earnings attributable to shareholders of the Company $ 721 $ 667 Prescribed dividends on preferred shares in share capital — (3) Adjusted net earnings available to common shareholders of the Company $ 721 $ 664 Diluted weighted average common shares outstanding (millions) 300.9 308.8 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to net earnings available to common shareholders of the Company and diluted net earnings per common share for the periods ended as indicated. Free Cash Flow The following table reconciles, by reportable operating segments, free cash flow to cash flows from operating activities. The Company believes that free cash flow is the appropriate measure in assessing the Company's cash available for additional financing and investing activities. (i) Interest paid is included in cash flows from operating activities under the Financial Services segment. (ii) Capital investments are the sum of fixed asset purchases and intangible asset additions as presented in the Company's Condensed Consolidated Statements of Cash Flows, and prepayments transferred to fixed assets in the current period. Same-Store Sales Same-store sales are retail segment sales for stores in operation in both comparable periods, including relocated, converted, expanded, contracted or renovated stores. The Company believes this metric is useful in assessing sales trends excluding the effect of the opening and closure of stores. SOURCE Loblaw Companies Limited
Yahoo
17-07-2025
- Business
- Yahoo
Loblaw CEO says tariffs driving shifts in grocery shopping, with sales of some U.S. goods down as much as 50%
Loblaw says tariffs are pushing Canadian shoppers to swap out U.S. goods, with some sales plunging 50%. In a LinkedIn post Wednesday, Loblaw president and CEO Per Bank said sales volumes on products marked with a 'T' — U.S.-sourced items affected by tariffs — declined 15 to 20 per cent, demonstrating that there is a 'strong desire by consumers to continue supporting Canadian products and brands.' Some declines are nearer to 50 per cent, where stronger alternative options are available, he adds. The update follows U.S. President Donald Trump's Thursday announcement that he'll impose 35 per cent tariffs on Canadian imports from Aug. 1, and Statistics Canada's latest inflation numbers published last week. 'June grocery prices increased at a slower pace than May,' Bank said. 'Hidden within that positive news though, is the fact that tariffs continue to place inflationary pressures on grocery costs. This shows that retailers are generally doing a good job at managing the impacts of these tariffs for Canadians.' This year, around 30 per cent of the inflationary cost increases Loblaw is facing are directly tied to tariffs, he adds. A few months ago, Bank said he expected to put a 'T' symbol on about 6,000 products directly sourced from the U.S. Now, he expects that number will move closer to 7,500 as the full effects of countermeasures are felt. Meanwhile, Loblaw is looking for suppliers not impacted by tariffs. It added 70 new suppliers in its second quarter, bringing the number of new Canadian venders this year to 100, Bank says.
Yahoo
16-07-2025
- Business
- Yahoo
Loblaw CEO says tariffs driving shifts in grocery shopping, with sales of some U.S. goods down as much as 50%
Loblaw says tariffs are pushing Canadian shoppers to swap out U.S. goods, with some sales plunging 50%. In a LinkedIn post Tuesday, Loblaw president and CEO Per Bank said sales volumes on products marked with a 'T' — indicating that they're directly sourced from the U.S. — declined 15 to 20 per cent, demonstrating that there is a 'strong desire by consumers to continue supporting Canadian products and brands.' Some declines are nearer to 50 per cent, where stronger alternative options are available, he adds. The update follows U.S. President Donald Trump's Thursday announcement that he'll impose 35 per cent tariffs on Canadian imports from Aug. 1, and Statistics Canada's latest inflation numbers published last week. 'June grocery prices increased at a slower pace than May,' Bank said. 'Hidden within that positive news though, is the fact that tariffs continue to place inflationary pressures on grocery costs. This shows that retailers are generally doing a good job at managing the impacts of these tariffs for Canadians.' This year, around 30 per cent of the inflationary cost increases Loblaw is facing are directly tied to tariffs, he adds. A few months ago, Bank said he expected to put a 'T' symbol on about 6,000 products directly sourced from the U.S. Now, he expects that number will move closer to 7,500 as the full effects of countermeasures are felt. Meanwhile, Loblaw is in search of new non-tariff impacted suppliers, and added another 70 new suppliers in its second quarter, adding up to 100 new Canadian vendors this year, he says. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
