Loblaw Companies (L) investor relations material

Executive summary

• Q1 2026 delivered strong financial and operational results, with robust revenue and adjusted EPS growth, continuing momentum from the prior year.

• Strategic investments in new store openings, pharmacy expansion, and technology-enabled distribution centers supported growth.

• Customer engagement and traffic increased, driven by value offerings, loyalty programs, and promotional activity.

• Hard discount banners outperformed conventional stores, with Canadians responding positively to expanded access to Maxi and No Frills.

• Opened 13 new food and drug stores, increasing retail square footage by 1.7% year-over-year.

Financial highlights

• Revenue grew 4.5% year-over-year when normalized for business exits; GAAP revenue up CAD 600 million or 4.2%.

• Adjusted EBITDA increased 6.5% to CAD 1.7 billion; margin improved by 20 bps to 11.5%.

• Adjusted diluted EPS rose 10.6% to CAD 0.52; GAAP diluted EPS was CAD 0.50, up 19%.

• Retail operating income increased 20.5% to $1,010 million.

• Free cash flow from retail was CAD 432 million; CAD 648 million in share repurchases; 10% dividend increase announced.

Outlook and guidance

• Performance for the remainder of 2026 expected to closely resemble Q1, with adjusted net earnings per share growth in the high single digits.

• Ramp-up of East Gwillimbury DC and T&T US investments will have the greatest negative impact on earnings growth this year, but drag expected to end next year.

• Plans to invest approximately $2.4 billion in gross capital expenditures and continue significant share repurchases.

• Quarterly dividend increased by 10%, marking the fifteenth consecutive year of dividend growth.

• Confident in ability to deliver on full-year outlook.