BRAMPTON, ONTARIO February 25, 2026 Loblaw Companies Limited (TSX: L) (“Loblaw” or the “Company”) announced today its unaudited financial results for the fourth quarter ended January 3, 2026(¹).

Unless otherwise indicated, all comparisons of results for the fourth quarter of 2025 (13 weeks ended January 3, 2026) are against results for the fourth quarter of 2024 (12 weeks ended December 28, 2024) and all comparisons of results for the full-year of 2025 (53 weeks ended January 3, 2026) are against the results for the full-year of 2024 (52 weeks ended December 28, 2024).

Loblaw delivered solid fourth quarter results, demonstrating strong execution against its strategic plan. On a comparable 12-week basis, revenue increased 3.5%, gross profit percentage improved by 10 basis points, SG&A as a percentage of sales was flat and adjusted net earnings per common share increased 10.9%. Customer visits increased in the fourth quarter as Canadians recognized the differentiated value, quality, service, and convenience the Company offers across its nationwide network. This increased traffic resulted in continued market share gains across its banners. E-commerce sales experienced robust growth, as omnichannel convenience remained a customer priority. The Company continued to expand its offering, catering to customer demand for rapid delivery, prepared meals, and favourite PC^® products. The Company continued to focus on providing value to Canadians by expanding its Hard Discount network this quarter, opening 15 No Frills^® and Maxi^® stores, providing convenient access to nutritious food at great prices for more Canadian families. The Company’s Super Market banners, including high-performing Fortinos and T&T^® Supermarkets, attracted shoppers seeking full-service shopping with a focus on Canadian products, multicultural offerings, and innovative PC^® Insider Report^TM products, enhanced by personalized PC Optimum^TM loyalty offers and competitive prices. Food Retail same-store sales growth steadily improved through the quarter. Across Shoppers Drug Mart and Pharmaprix(MD), the Company continued to demonstrate momentum in front store, driven by strong beauty and over-the-counter (“OTC”) sales. Pharmacy and healthcare services was again led by strong growth in specialty prescriptions and healthcare services.

The Company’s performance in the fourth quarter capped a successful 2025. Loblaw continued to invest in its future growth by opening 77 new stores across its banners, and successfully ramping the first of two automated, one million square foot distribution centres. The previously announced sale of PC Financial to EQ Bank will streamline the Company’s operations, and the associated long-term strategic relationship as the exclusive financial partner of the PC Optimum loyalty program is expected to result in expanded growth of high-value, loyalty-based financial services customers. 2025 also marked significant growth rates in the Company’s margin accretive logistics as a service, retail media and Lifemark businesses. Loblaw is confident that its best-in-class assets, resilient business model and investments for the future position it well to meet the evolving needs of Canadians, creating a foundation for consistent and sustainable growth.

“We are pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on retail excellence, strategic execution, leading digital engagement and adoption of Agentic AI,” said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. “Our success reflects our commitment to being where our customers need us most, delivering unparalleled value and convenience across our many banners, combined with exceptional service from our dedicated colleagues coast-to-coast.” 2025 FOURTH QUARTER HIGHLIGHTS

As announced on December 3, 2025, the Company entered into an agreement with EQB Inc. (“EQB”) pursuant to which EQB will acquire President's Choice Bank (“PC Bank”) and certain other affiliated entities (collectively, "PC Financial") (the “Sale of PC Financial”). Closing is expected to occur within calendar 2026, subject to customary closing conditions and regulatory approvals. Accordingly, PC Financial results are presented as discontinued operations. Retail represents the continuing operations of the Company.

• Retail revenue was $16,382 million, an increase of $1,657 million, or 11.3%.

  • On a 12-week comparable basis, revenue increased by 3.5%.

  • Food Retail (Loblaw) same-store sales(⁵) increased by 1.5%.

  • Drug Retail (Shoppers Drug Mart) same-store sales(⁵) increased by 3.9%, with pharmacy and healthcare services same-store sales growth(⁵) of 5.6% and front store same-store sales growth(⁵) of 2.2%.

  • E-commerce sales(⁵) increased by 19.6%.

• Retail gross profit percentage(²) was 30.8%, a decrease of 10 basis points.

  • On a 12-week comparable basis, gross profit percentage(²) was 31.0%, an increase of 10 basis points.

• Retail operating income was $1,134 million, an increase of $341 million, or 43.0%.

• Retail adjusted EBITDA(²) was $1,775 million, an increase of $180 million, or 11.3%.

  • Selling, general and administrative expenses (“SG&A”) as a percentage of sales was 20.0%, a decrease of 10 basis points. On a 12-week comparable basis, SG&A as a percentage of sales was flat at 20.1%.

• Net earnings available to common shareholders of the Company were $656 million, an increase of $194 million or 42.0%. Diluted net earnings per common share were $0.55, an increase of $0.17, or 44.7%.

• Adjusted net earnings available to common shareholders of the Company(²) were $794 million, an increase of $125 million, or 18.7%. Adjusted diluted net earnings per common share(²) were $0.67, an increase of $0.12 or 21.8%.

  • On a 12-week comparable basis, adjusted diluted net earnings per common share(²) increased by 10.9%.

• Net capital investments were $677 million, which reflects gross capital investments of $722 million, net of proceeds from property disposals of $45 million.

• Repurchased for cancellation 9.8 million common shares at a cost of $592 million. Free cash flow(²) from Retail (continuing) operations was $1,239 million. 2025 SELECT ANNUAL HIGHLIGHTS

• Retail revenue was $63,903 million, an increase of $3,780 million, or 6.3%.

  • On a 52-week comparable basis, revenue increased by 4.4%.

  • Food Retail same-store sales(⁵) increased by 2.3% and Drug Retail same-store sales(⁵) increased by 3.9%.

  • E-commerce sales(⁵) were approximately $4.6 billion, an increase of 18.1%.

• Retail gross profit percentage(²) was flat at 31.3%

  • On a 52-week comparable basis, gross profit percentage(²) increased by 10 basis points.

• Net earnings available to common shareholders of the Company were $2,667 million, an increase of $512 million or 23.8%. Diluted net earnings per common share were $2.22, an increase of $0.47, or 26.9%. The increase was primarily driven by the impact of lower costs related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation (“Shoppers Drug Mart”) and the favourable impact of lapping prior year charges.

• Adjusted net earnings available to common shareholders of the Company(²) were $2,913 million, an increase of $276 million, or 10.5%. Adjusted diluted net earnings per common share(²) were $2.43, an increase of $0.29, or 13.6%.

  • On a 52-week comparable basis, adjusted diluted net earnings per common share(²) increased by 10.7%.

• Net capital investments were $1,789 million, which reflects gross capital investments of $2,062 million, net of proceeds from property disposals of $273 million.

• Repurchased for cancellation, 34.8 million common shares(4) at a cost of $1,875 million. Free cash flow(²) from Retail (continuing) operations was $1,910 million.

• In the third quarter of 2025, the Company completed a four-for-one stock split of its outstanding common shares. The stock split was implemented by way of a stock dividend, with shareholders receiving three additional common shares for each common share held. The stock split was effective at the close of business on August 18, 2025, for shareholders of record as of the close of business on August 14, 2025. All share and per share amounts presented herein have been retrospectively adjusted to reflect the stock split.

¹This News Release contains forward-looking information. See “Forward-Looking Statements” section of this News Release and the Company’s 2025 Annual Report for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with Loblaw Companies Limited’s filings with securities regulators made from time to time, all of which can be found at sedarplus.ca and at loblaw.ca. ²See “Non-GAAP and Other Financial Measures” section of this News Release, which includes the reconciliation of such non-GAAP and other financial measures to the most directly comparable GAAP measures. ³To be read in conjunction with the “Forward-Looking Statements” section of this News Release and the Company’s 2025 Annual Report. ⁴Adjusted to reflect the four-for-one stock split effective at the close of business on August 18, 2025. For additional information, see note 22 ”Share Capital” of the Company’s consolidated financial statements. ⁵Results are presented on a comparable number of week basis. Comparable number of weeks would be 12 weeks versus 12 weeks or 52 weeks versus 52 weeks.