Loblaw Q4 Profits Drop Due to PC Optimum Loyalty Program Costs

Increased redemption rates and higher participation in the loyalty program led to a one-time non-cash charge, despite revenue growth and adjusted earnings gains.

• Loblaw Companies Ltd. reported a fourth-quarter net profit of $462 million, down from $541 million in the same period in 2023, due to a non-cash charge tied to its PC Optimum loyalty program.
• The charge was attributed to higher participation and redemption rates within the loyalty program, increasing the company’s liability for outstanding points.
• Adjusted net earnings rose to $669 million or $2.20 per diluted share, compared to $630 million or $2 per share in the prior year, reflecting underlying business strength.
• Quarterly revenue grew by 2.9% to $14.9 billion, driven by a 2.5% increase in same-store food retail sales and a 6.3% rise in pharmacy and healthcare services sales.
• Loblaw plans to expand its discount grocery and health services businesses in 2025, with 50 new discount stores and 100 additional pharmacy care clinics set to open.

3 Articles

The Globe and Mail The Globe and Mail Global News