Title: Loblaw Companies Ltd. Experiences a Decline in Fourth-Quarter Profits

By The Editorial Team at The Canadian Press, February 20, 2025

Loblaw Companies Ltd., the parent company of popular Canadian brands Loblaws and Shoppers Drug Mart, recently revealed its financial performance for the fourth quarter of 2024. The company witnessed a significant dip in profit compared to the corresponding period in the previous year. This decline was largely attributed to a non-cash charge related to its PC Optimum loyalty program, driven by increased member participation and higher redemption rates.

During the quarter ending on December 28, the net earnings available to common shareholders was reported at $462 million or $1.52 per diluted share. This marks a significant drop from the $541 million or $1.72 per diluted share profit recorded in the fourth quarter of 2023.

Despite the lower net earnings, Loblaw saw an increase in its adjusted earnings. The company reported an adjusted profit of $2.20 per diluted share, a considerable rise from the adjusted profit of $2 per diluted share in the same period a year prior.

The revenue for the quarter reached $14.9 billion, a step up from the $14.5 billion reported in the previous year. This revenue growth was primarily driven by a 2.5% rise in food retail same-store sales. After adjusting for the positive impact of Thanksgiving’s timing, the food retail same-store sales increase was approximately 1.5%.

However, not all sectors experienced growth. The drug retail same-store sales rose by a modest 1.3%. While pharmacy and health care services same-store sales witnessed an impressive 6.3% growth, this was offset by a 3.1% decrease in front store same-store sales.

This report provides valuable insight for those interested in the retail industry or considering investment opportunities, highlighting the challenges and successes faced by one of Canada’s leading retail companies.

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