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BRAMPTON, Ontario—Shoppers Drug Mart's parent company, Loblaw Cos., will open around 80 food and drug stores and 100 pharmacy care clinics this year.
The company announced its growth plans in its fourth-quarter earnings release, which reported that adjusted earnings per share rose 10.0% in the three months ended December 28 and 10.3% for the year.
In the fourth quarter, customers continued to seek a combination of quality, value, service, and convenience and recognized the strength of Loblaw's offer across its store network. Growing customer engagement with personalized PC Optimum loyalty offers, impactful in-store promotions and more everyday value drove higher traffic and substantial market share gains in supermarkets.
At Shoppers Drug Mart, pharmacy and healthcare services continued to perform well.
Front-store sales reflected growth across the beauty categories, led by prestige. However, the impact of the exit from the sale of certain electronics items offset this.
In 2024, the company invested in its network by opening 52 new drug and food retail stores and 78 new pharmacy care clinics. Loblaw celebrated a major milestone with the opening of its first T&T Supermarket in the United States during the fourth quarter of 2024.
“We are very pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on execution of our strategies and retail excellence,” said president and CEO Per Bank. “We are providing unmatched value which is resonating with Canadians. I am thankful for the commitment and contributions of our colleagues across the organization.”
2024 fourth quarter highlights
- Revenue was $14,948 million, an increase of $417 million, or 2.9%.
- Retail segment sales were $14,579 million, an increase of $422 million, or 3.0%.Food Retail (Loblaw) same-stores sales increased by 2.5%, compared to 2.0% last year.
- Food retail same-store sales growth was approximately 1.5% after excluding the favourable impact of the timing of Thanksgiving.
- Drug Retail (Shoppers Drug Mart) same-store sales increased by 1.3%, compared to 4.6% last year, with pharmacy and healthcare services same-store sales growth of 6.3%, partially offset by a decline in front store same-store sales of 3.1%.
- E-commerce sales increased by 18.4%.
- Operating income was $852 million, a decrease of $91 million, or 9.7%.
- Adjusted EBITDA(²) was $1,698 million, an increase of $65 million, or 4.0%.
- Retail segment gross profit percentage(²) was 30.9%, a decrease of 20 basis points.
- Net earnings available to common shareholders of the Company were $462 million, a decrease of $79 million or 14.6%.
- Diluted net earnings per common share were $1.52, a decrease of $0.20, or 11.6%. The decrease was primarily driven by a non-cash PC Optimum loyalty program charge of $129 million ($94 million, net of income taxes). This non-recurring charge represents the revaluation of the loyalty liability for outstanding points, reflecting higher PC Optimum member participation and higher redemption rates.
- Adjusted net earnings available to common shareholders of the Company(²) were $669 million, an increase of $39 million, or 6.2%.
- Adjusted diluted net earnings per common share(²) were $2.20, an increase of $0.20 or 10.0%.
- Net capital investments were $585 million, which reflects gross capital investments of $628 million, net of proceeds from property disposals of $43 million.
- Repurchased for cancellation 1.95 million common shares at a cost of $352 million. Free cash flow(²) from the Retail segment was $828 million.
2024 Annual highlights
- Revenue was $61,014 million, an increase of $1,485 million, or 2.5%.
- Food Retail same-store sales increased by 1.5% and Drug Retail same-store sales increased by 2.4%.
- E-commerce sales were approximately $3.9 billion, an increase of 16.9%.
- Net earnings available to common shareholders of the Company were $2,155 million, an increase of $67 million or 3.2%.
- Diluted net earnings per common share were $6.99, an increase of $0.47, or 7.2%.
- Adjusted net earnings available to common shareholders of the Company(²) were $2,637 million, an increase of $157 million, or 6.3%.
- Adjusted diluted net earnings per common share(²) were $8.55, an increase of $0.80, or 10.3%.
- Net capital investments were $1,837 million, which reflects gross capital investments of $2,200 million, net of proceeds from property disposals of $363 million.
- Repurchased for cancellation, 11.0 million common shares at a cost of $1,754 million. Free cash flow(²) from the Retail segment was $1,506 million.
