Q1 2025 Loblaw Companies Ltd Earnings Call Transcript
Key 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.
- 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.
Good morning ladies and gentlemen and welcome to the Loblawâs Inc first quarter 2025 results conference call. (Operator Instructions) This call is being recorded on Wednesday, April 30, 2025. I would not like to turn a conference over to Mr. Roy MacDonald, Vice President of Investor Relations. Thank you, please go ahead.
Thank you very much and good morning, everybody. Welcome to the Loblaw Companies Limited first quarter 2025 results conference call. And as usual I'm joined this morning by Per Bank, our President and Chief Executive Officer; and Richard Dufresne, our Chief Financial Officer.
Before we begin the call, I'll remind you that today's discussion will include forward-looking statements which may include or not but are not limited to statements with respect to Loblaw future results, and 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
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