Q4 2024 Loblaw Companies Ltd Earnings Call Transcript
Key Points
- Loblaw Companies Ltd (LBLCF) reported a full-year revenue of $61 billion and adjusted earnings of more than $2.6 billion, showcasing consistent operational and financial performance.
- The company repurchased $1.8 billion worth of shares and increased its dividend per share by 13.9%, reflecting strong shareholder returns.
- Loblaw Companies Ltd (LBLCF) plans to reinvest over $10 billion into the Canadian economy over the next five years, enhancing access to affordable food and healthcare services.
- The company opened 52 new food and drug retail stores and 78 pharmacy care clinics in 2024, contributing to a 1.1% growth in square footage and boosting sales.
- Online sales increased by 18.4% in the quarter, with grocery delivery outperforming as a channel, indicating strong digital engagement and growth potential.
- Net earnings on a GAAP basis decreased by 14.6% due to a noncash charge of $129 million related to the revaluation of the PC Optimum program liability.
- The Canadian dollar's decline by 5% to $0.70 adds inflationary pressure, particularly affecting fresh produce imports from the US.
- The decision to exit low-margin electronics categories is expected to impact front store sales by about 1% in 2025.
- The Canada Post strike negatively impacted front store sales, particularly in Shoppers Drug Mart locations with postal outlets.
- The company faces ongoing pressure from higher-than-normal pricing increases requested by larger global vendors, which could affect cost management.
Good morning, ladies and gentlemen, and welcome to the Loblaw Inc. fourth quarter 2024 results conference call. (Operator Instructions) This call is being recorded on Thursday, February 20, 2025.
I would now like to turn the conference over to Mr. Roy MacDonald. Please go ahead.
Thank you, Constantine, and good morning, everybody. Welcome to the Loblaw Companies Limited fourth quarter And fiscal year 2024 results conference call. I'm joined this morning as usual by Per Bank, our President and Chief Executive Officer; and by Richard Dufresne, our Chief Financial Officer.
So before we begin the call, I want to remind you that today's discussion will include forward-looking statements, which may include, but are not limited to, statements with respect to Loblaw's anticipated future results. These statements are based on assumptions and reflect management's current expectations, as such, are subject to a number of risks and uncertainties that could cause actual results or events to
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