BRAMPTON, ON, Feb. 24, 2022 /CNW/ - Loblaw Companies Limited
(TSX: L) ("Loblaw" or the "Company") announced today its unaudited
financial results for the fourth quarter ended January 1, 2022 and the release of its 2021
Annual Report - Financial Review ("Annual Report"). The report
includes the Company's audited financial statements and
Management's Discussion and Analysis ("MD&A") for the fiscal
year ended January 1, 2022. The
Company's 2021 Annual Report will be available in the Investors
section of the Company's website at loblaw.ca and will be
filed on SEDAR and available at sedar.com.
2021 Q4 AND FULL YEAR FINANCIAL AND OPERATING RESULTS
In the fourth quarter, Loblaw experienced strong demand as
consumers continued to eat-at-home, particularly over the holiday
period. The Company's focus on retail excellence resulted in
operational and financial improvements, despite supply chain and
inflationary pressures. Discount banners (representing 60% of
Loblaw's Food Retail network) benefited from the return of
price-sensitive customers, and conventional Market stores extended
strong performance, with impactful promotional strategies. Drug
Retail front-store and prescription sales benefited from the
loosening of social restrictions in the quarter. The Drug Retail
business continued to play an important role in supporting
communities nationwide with COVID-19 testing and vaccine services.
Loyalty and data-driven marketing promotions across the portfolio
were effective as customers responded favourably to mass and
personalized offers.
"Loblaw showed strength in the fourth quarter as we delivered
improved results across the board," said Galen G. Weston, Chairman and President, Loblaw
Companies Limited. "We are effectively managing through a
challenging environment of supply chain constraints and higher
costs. With a clear strategic agenda, we remain confident in our
ability to create value over the long term."
LOBLAW COMMITS TO NET-ZERO CARBON EMISSIONS
In 2016, Loblaw committed to a 30-percent reduction in corporate
carbon emissions by 2030. It achieved the target in 2020, with
advancements in energy management, equipment conversions, and
through addressing refrigerant leaks. Informed by the Science Based
Target Initiative, the Company is raising and expanding its
ambitions to its full corporate, independent and franchise store
network, its distribution centres, and ultimately its supplier
network. Today, the Company announces a long-term roadmap:
achieving net-zero carbon emissions for Loblaw's operational
footprint by 2040, and achieving net-zero for Scope 3 emissions,
including those generated by suppliers, by 2050.
"Climate change is one of the biggest issues of our time," said
Galen G. Weston, Chairman and
President, Loblaw Companies Limited. "We are committed to doing our
part, extending our past progress by setting an ambitious net-zero
target."
Founded on a long-standing corporate social responsibility
program, Loblaw has a growing record of Environmental, Social and
Governance (ESG) performance. It is committed to fighting climate
change, taking action on carbon emissions, plastic waste and food
waste, and it has impactful social commitments to deliver workforce
diversity, equity and inclusion and nation-leading support for
childhood hunger and women's access to care.
In the quarter, Loblaw continued its efforts to make a positive
impact in the communities in which it operates:
- Demonstrated leadership on tackling plastic waste with the
introduction of new Sustainable Packaging Standards to all
control-brand suppliers, supporting Loblaw's commitment that all
control-brand packaging will be recyclable or reusable by 2025.
These standards align with the Golden Design Rules for packaging,
established by global Consumer Goods Forum Plastic Waste Coalition
of Action, co-sponsored by Loblaw President and Chairman,
Galen G. Weston.
- Completed annual charitable activities donating and raising
more than $90 million in support for
community organizations, through the corporate and store
activities, supported by colleagues, suppliers and customers.
- Mobilized an immediate response to support citizens affected by
flooding in British Columbia. The
Company matched in-store donations totaling $390,000 for the Canadian Red Cross, supplemented
by in-kind items donated in-kind.
2021 FOURTH QUARTER HIGHLIGHTS
Unless otherwise indicated, the following highlights include the
impact of COVID-19 and are presented on a comparable(4)
12 week basis.
- Revenue was $12,757 million. This
represented an increase of $349
million, or 2.8% when compared to the fourth quarter of
2020.
- Retail segment sales were $12,486
million. This represented an increase of $321 million, or 2.6% when compared to the fourth
quarter of 2020.
-
- Food Retail (Loblaw) same-stores sales increased by 1.1%.
- Drug Retail (Shoppers Drug Mart) same-store sales increased by
7.9%, with pharmacy same-store sales growth of 10.2% and front
store same-store sales growth of 6.1%.
- The two year sales Compound Average Growth Rate
("CAGR")(5) was 4.8% and 5.5% for Food Retail and Drug
Retail, respectively.
- The Company's e-commerce sales decreased by 8.4% (2020 –
increased 158%) due to the lapping of high e-commerce sales in the
fourth quarter of 2020.
- COVID-19 related costs were approximately $8 million (2020 – approximately $42 million).
- Retail segment adjusted gross profit percentage(2)
was 30.9%. This represented an increase of 150 basis points
compared to the fourth quarter of 2020.
- Operating income was $705
million. This represented an increase of $70 million, or 11.0% when compared to the fourth
quarter of 2020.
- Adjusted EBITDA(2) was $1,324
million. This represented an increase of $78 million, or 6.3% when compared to the fourth
quarter of 2020.
- Net earnings available to common shareholders of the Company
were $744 million. This represented
an increase of $434 million, or
140.0% when compared to the fourth quarter of 2020. Diluted net
earnings per common share were $2.20.
This represented an increase of $1.32, or 150.0% when compared to the fourth
quarter of 2020.
-
- Net loss attributable to non-controlling interests was
$28 million in the fourth quarter of
2021 and represents the share of earnings that relates to the
Company's Food Retail franchisees. Franchisee earnings are impacted
by the timing of when profit sharing with franchisees is agreed and
finalized under the terms of the agreements. On a full year basis,
net earnings attributable to non-controlling interests of
$101 million increased by
$26 million when compared to 2020,
reflecting an improvement in franchisee earnings.
- During the quarter, the Company recorded a recovery of
$301 million related to the Supreme
Court of Canada's decision on the
Glenhuron Bank Limited ("Glenhuron") tax matter, of which
$173 million is recorded as interest
income and $128 million is recorded
as income tax recovery. In addition, net interest of $16 million, before tax, was recorded in respect
of interest income earned on expected cash tax refunds. This
recovery is expected to be received in 2022 and will increase the
Company's cash and cash equivalents balance.
- Adjusted net earnings available to common shareholders of the
Company(2) were $515
million. This represented an increase of $119 million, or 30.1% when compared to the
fourth quarter of 2020.
- Adjusted diluted net earnings per common share(2)
were $1.52. This represented an
increase of $0.40, or 35.7% when
compared to the fourth quarter of 2020. The two year adjusted
diluted net earnings per common share CAGR(5) was
30.0%.
-
- The two year adjusted diluted net earnings per common share
CAGR(5) was positively impacted by lower fixed asset impairment in
2021 when compared to 2019. The impact on the CAGR(5) was
7.3%.
- The Company repurchased, for cancellation, 2.0 million common
shares at a cost of $200 million and
15.6 million common shares at a cost of $1,200 million on a year-to-date basis.
- The Company invested $381 million
in capital expenditures and generated $460
million of Retail Segment free cash flow(2).
The following table provides the Company's fourth quarter
highlights both including and excluding the approximate impact of
the 53rd week in 2020:
|
|
|
|
|
|
For the periods ended
January 1, 2022 and January 2, 2021
|
2021
|
2020(4)
|
2020(4)
|
(12 week vs. 13
week)
|
(12 week vs. 12
week)
|
(millions of Canadian
dollars except where otherwise indicated)
|
(12
weeks)
|
(13 weeks)
|
(12 weeks)
|
$ Change
|
% Change
|
$ Change
|
% Change
|
Revenue
|
$
|
12,757
|
$
|
13,286
|
$
|
12,408
|
$
|
(529)
|
(4.0)%
|
$
|
349
|
2.8%
|
Operating
income
|
705
|
702
|
635
|
3
|
0.4%
|
70
|
11.0%
|
Adjusted
EBITDA(2)
|
1,324
|
1,313
|
1,246
|
11
|
0.8%
|
78
|
6.3%
|
Adjusted EBITDA
margin(2)
|
10.4%
|
9.9%
|
10.0%
|
|
|
|
|
Depreciation and
amortization
|
$
|
623
|
$
|
609
|
$
|
609
|
$
|
14
|
2.3%
|
$
|
14
|
2.3%
|
Diluted net earnings
per common share ($)
|
$
|
2.20
|
$
|
0.98
|
$
|
0.88
|
$
|
1.22
|
124.5%
|
$
|
1.32
|
150.0%
|
Adjusted diluted net
earnings per common share(2) ($)
|
$
|
1.52
|
$
|
1.22
|
$
|
1.12
|
$
|
0.30
|
24.6%
|
$
|
0.40
|
35.7%
|
|
|
|
|
|
|
|
|
The following table provides the approximate impact of the 53rd
week on the Retail segment and consolidated results of the Company
in the fourth quarter of 2020. The 53rd week does not impact the
Financial Services segment.
For the period ended
January 2, 2021
|
|
53rd Week
Impact
|
(millions of Canadian
dollars except where otherwise indicated)
|
|
2020
|
Revenue
|
|
$
|
878
|
Operating
income
|
|
67
|
Adjusted
EBITDA(2)
|
|
67
|
Adjusted EBITDA
margin(2)
|
|
7.6%
|
Diluted net earnings
per common share ($)
|
|
$
|
0.10
|
Adjusted Diluted net
earnings per common share(2) ($)
|
|
$
|
0.10
|
2021 SELECT ANNUAL HIGHLIGHTS
On a comparable 52 week basis, the Company:
- Delivered Food Retail same-store sales growth of 0.3% and Drug
Retail same-store sales growth of 5.0%.
- Delivered adjusted net earnings available to common
shareholders of the Company(2) of $1,911 million. When compared to 2020, this
represented an increase of 30.5%.
- Delivered adjusted diluted net earnings per common
share(2) of $5.59. When
compared to 2020, this represented an increase of 36.7%.
In 2021, the Company:
- Invested approximately $1,103
million in capital expenditures, net of proceeds from
property disposals.
- Returned capital to shareholders by allocating a significant
portion of the Company's Retail segment free cash
flow(2) of approximately $2,004
million to share repurchases. In 2021, the Company
repurchased, for cancellation, 15.6 million common shares at a cost
of $1,200 million.
- The Company's e-commerce sales were $3.1
billion and grew by 13.9% when compared to the prior
year.
The following table provides the Company's fiscal year
highlights both including and excluding the approximate impact of
the 53rd week:
|
|
|
|
|
|
For the years ended
January 1, 2022 and January 2, 2021
|
2021
|
2020(4)
|
2020(4)
|
(52 week vs. 53
week)
|
(52 week vs. 52
week)
|
(millions of Canadian
dollars except where otherwise indicated)
|
(52
weeks)
|
(53 weeks)
|
(52 weeks)
|
$ Change
|
% Change
|
$ Change
|
% Change
|
Revenue
|
$
|
53,170
|
$
|
52,714
|
$
|
51,836
|
$
|
456
|
0.9%
|
$
|
1,334
|
2.6%
|
Operating
income
|
2,937
|
2,365
|
2,298
|
572
|
24.2%
|
639
|
27.8%
|
Adjusted
EBITDA(2)
|
5,587
|
5,004
|
4,937
|
583
|
11.7%
|
650
|
13.2%
|
Adjusted EBITDA
margin(2)
|
10.5%
|
9.5%
|
9.5%
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
2,664
|
$
|
2,596
|
$
|
2,596
|
$
|
68
|
2.6%
|
$
|
68
|
2.6%
|
Diluted net earnings
per common share ($)
|
$
|
5.45
|
$
|
3.06
|
$
|
2.96
|
$
|
2.39
|
78.1%
|
$
|
2.49
|
84.1%
|
Adjusted diluted net
earnings per common share(2) ($)
|
$
|
5.59
|
$
|
4.18
|
$
|
4.09
|
$
|
1.41
|
33.7%
|
$
|
1.50
|
36.7%
|
|
|
|
|
|
|
|
|
|
See "News Release
Endnotes" at the end of this News Release.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
For the periods ended
January 1, 2022
and January 2, 2021
|
2021
|
2020(4)
|
|
|
2021
|
2020(4)
|
|
|
(millions of Canadian
dollars except
where otherwise indicated)
|
(12
weeks)
|
(13 weeks)
|
$ Change
|
% Change
|
(52
weeks)
|
(53 weeks)
|
$ Change
|
% Change
|
Revenue
|
$
|
12,757
|
$
|
13,286
|
$
|
(529)
|
(4.0)%
|
$
|
53,170
|
$
|
52,714
|
$
|
456
|
0.9%
|
Operating
income
|
705
|
702
|
3
|
0.4%
|
2,937
|
2,365
|
572
|
24.2%
|
Adjusted
EBITDA(2)
|
1,324
|
1,313
|
11
|
0.8%
|
5,587
|
5,004
|
583
|
11.7%
|
Adjusted EBITDA
margin(2)
|
10.4%
|
9.9%
|
|
|
10.5%
|
9.5%
|
|
|
Net
earnings attributable to
shareholders of the
Company
|
$
|
747
|
$
|
348
|
$
|
399
|
114.7%
|
$
|
1,875
|
$
|
1,108
|
$
|
767
|
69.2%
|
Net earnings
available to
common shareholders of
the Company(i)
|
744
|
345
|
399
|
115.7%
|
1,863
|
1,096
|
767
|
70.0%
|
Adjusted net
earnings available
to common shareholders of
the Company(2)
|
515
|
431
|
84
|
19.5%
|
1,911
|
1,499
|
412
|
27.5%
|
Diluted net
earnings
per common share ($)
|
$
|
2.20
|
$
|
0.98
|
$
|
1.22
|
124.5%
|
$
|
5.45
|
$
|
3.06
|
$
|
2.39
|
78.1%
|
Adjusted diluted
net
earnings per common
share(2) ($)
|
$
|
1.52
|
$
|
1.22
|
$
|
0.30
|
24.6%
|
$
|
5.59
|
$
|
4.18
|
$
|
1.41
|
33.7%
|
Diluted
weighted
average common
shares outstanding
(in millions)
|
338.1
|
353.8
|
|
|
341.8
|
358.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Net earnings
available to common shareholders of the Company are net earnings
attributable to shareholders of the Company net of dividends
declared on the Company's Second Preferred Shares, Series
B.
|
REPORTABLE OPERATING SEGMENTS
The Company has two reportable operating segments with all
material operations carried out in Canada:
- The Retail segment consists primarily of corporate and
franchise-owned retail food and Associate-owned drug stores. The
Retail segment also includes in-store pharmacies and other health
and beauty products and apparel and other general merchandise;
and
- The Financial Services segment provides credit card and
everyday banking services, the PC OptimumTM
Program, insurance brokerage services, and telecommunication
services.
|
|
|
|
2021
|
2020(4)
|
|
(12
weeks)
|
(13 weeks)
|
For the periods ended
January 1, 2022
and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Total
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Total
|
(millions of Canadian
dollars)
|
Revenue
|
$
|
12,486
|
$
|
360
|
$
|
(89)
|
$
|
12,757
|
$
|
13,043
|
$
|
320
|
$
|
(77)
|
$
|
13,286
|
Adjusted gross
profit(2)
|
$
|
3,859
|
$
|
282
|
$
|
(89)
|
$
|
4,052
|
$ 3,832
|
$
|
253
|
$
|
(77)
|
$
|
4,008
|
Adjusted gross profit
%(2)
|
30.9%
|
N/A
|
—%
|
31.8%
|
29.4%
|
N/A
|
—%
|
30.2%
|
Operating
income
|
$
|
636
|
$
|
69
|
$
|
—
|
$
|
705
|
$
|
649
|
$
|
53
|
$
|
—
|
$
|
702
|
Net interest
(recovery) / expense and other financing charges
|
(45)
|
16
|
—
|
(29)
|
146
|
20
|
—
|
166
|
Earnings before
income taxes
|
$
|
681
|
$
|
53
|
$
|
—
|
$
|
734
|
$
|
503
|
$
|
33
|
$
|
—
|
$
|
536
|
Depreciation and
amortization
|
$
|
612
|
$
|
11
|
$
|
—
|
$
|
623
|
$
|
600
|
$
|
9
|
$
|
—
|
$
|
609
|
Adjusted
EBITDA(2)
|
1,244
|
80
|
—
|
1,324
|
1,251
|
62
|
—
|
1,313
|
Adjusted EBITDA
margin(2)
|
10.0 %
|
N/A
|
—%
|
10.4%
|
9.6%
|
N/A
|
—%
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
2020(4)
|
|
(52
weeks)
|
(53 weeks)
|
For the years ended
January 1, 2022
and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Total
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Total
|
(millions of Canadian
dollars)
|
Revenue
|
$
|
52,269
|
$
|
1,182
|
$
|
(281)
|
$
|
53,170
|
$
|
51,859
|
$
|
1,097
|
$
|
(242)
|
$
|
52,714
|
Adjusted gross
profit(2)
|
$
|
16,041
|
$
|
974
|
$
|
(281)
|
$
|
16,734
|
$
|
15,300
|
$
|
931
|
$
|
(242)
|
$
|
15,989
|
Adjusted gross profit
%(2)
|
30.7%
|
N/A
|
—%
|
31.5%
|
29.5%
|
N/A
|
—%
|
30.3%
|
Operating
income
|
$
|
2,713
|
$
|
224
|
$
|
—
|
$
|
2,937
|
$
|
2,231
|
$
|
134
|
$
|
—
|
$
|
2,365
|
Net interest expense
and
other financing charges
|
431
|
64
|
—
|
495
|
655
|
87
|
—
|
742
|
Earnings before
income taxes
|
$
|
2,282
|
$
|
160
|
$
|
—
|
$
|
2,442
|
$
|
1,576
|
$
|
47
|
$
|
—
|
$
|
1,623
|
Depreciation and
amortization
|
$
|
2,623
|
$
|
41
|
$
|
—
|
$
|
2,664
|
$
|
2,571
|
$
|
25
|
$
|
—
|
$
|
2,596
|
Adjusted
EBITDA(2)
|
5,322
|
265
|
—
|
5,587
|
4,845
|
159
|
—
|
5,004
|
Adjusted EBITDA
margin(2)
|
10.2 %
|
N/A
|
—%
|
10.5%
|
9.3 %
|
N/A
|
—%
|
9.5%
|
|
|
|
|
|
|
|
|
|
|
(i)
Eliminations include the reclassification of revenue related to
PC® Mastercard® loyalty awards in
the Financial Services segment.
|
RETAIL SEGMENT
- Retail segment sales in the fourth quarter of 2021 were
$12,486 million. This represented a
decrease of $557 million, or 4.3% when compared to the fourth
quarter of 2020. The decrease included the impact of the 53rd week
in 2020 of $878 million.
-
- Food Retail (Loblaw) sales were $8,742
million and Food Retail same-store sales grew by 1.1% (2020
– 8.6%). Sales were impacted by lower eat-at-home trends after
strong growth last year, offset by higher industry inflation
levels. The two year Food Retail sales CAGR(5)
was 4.8%.
-
- Sales growth in food was modest;
- Sales growth in pharmacy was modest;
- The Consumer Price Index ("CPI") as measured by The Consumer
Price Index for Food Purchased From Stores was 4.8% (2020 – 1.5%)
which was slightly lower than the Company's internal food
inflation.
- Food Retail basket size decreased and traffic increased in the
quarter when compared to the fourth quarter of 2020.
- Drug Retail (Shoppers Drug Mart) sales were $3,744 million, and Drug Retail same-store sales
grew by 7.9% (2020 – 3.7%), with pharmacy same-store sales
growth of 10.2% (2020 – 5.0%) and front store same-store sales
growth of 6.1% (2020 – 2.8%). Pharmacy same-store sales growth
benefited from strong sales in pharmacy related
services. Front store same-store sales growth benefited from
the economic re-opening in the third quarter of 2021. The two year
Drug Retail sales CAGR(5) was 5.5%.
-
- On a same-store basis, the number of prescriptions dispensed
increased by 8.8% (2020 – 1.9%) and the average prescription value
increased by 1.1% (2020 – 2.0%).
- Operating income in the fourth quarter of 2021 was $636 million. This represented a decrease of
$13 million, or 2.0% when compared to
the fourth quarter of 2020. The decrease included the negative
impact of the 53rd week in 2020 of $67
million.
- Adjusted gross profit(2) in the fourth quarter of
2021 was $3,859 million. This
represented an increase of $27
million, or 0.7% when compared to the fourth quarter of
2020. The adjusted gross profit percentage(2) of 30.9%
increased by 150 basis points compared to the fourth quarter of
2020, from favourable changes in sales mix in both Food and Drug
Retail and improved business initiatives.
- Adjusted EBITDA(2) in the fourth quarter of 2021 was
$1,244 million. This represented a
decrease of $7 million, or 0.6% when
compared to the fourth quarter of 2020. The decrease included the
negative impact of the 53rd week in 2020 of $67 million, and was driven by an increase in
SG&A as described below, partially offset by an increase in
adjusted gross profit(2).. SG&A as a percentage of
sales was 20.9%, an increase of 110 basis points compared to the
fourth quarter of 2020. The unfavourable increase of 110 basis
points was primarily driven by higher expenses related to the
normalization of post-lockdown operating conditions, corporate
costs including network optimization costs and higher costs
incurred in Drug Retail from providing pharmacy related services,
partially offset by a reduction in COVID-19 costs.
- Depreciation and amortization in the fourth quarter of 2021 was
$612 million, an increase of
$12 million compared to the fourth
quarter of 2020, primarily driven by an increase in IT assets and
an increase in depreciation of leased assets. Included in
depreciation and amortization was the amortization of intangibles
assets related to the acquisition of Shoppers Drug Mart Corporation
of $117 million (2020 – $117 million).
- In the fourth quarter of 2021, the Company finalized network
optimization plans that will result in banner conversions, closures
and right-sizing of approximately 20 unprofitable retail locations
across a range of banners and formats, the majority of which will
be banner conversions and 3 will be closures within Food retail.
The Company expects to record charges of approximately $25 million to $35
million resulting from this network optimization. These
charges will be recorded as incurred and are expected to include
equipment, severance, lease related and other costs and will not be
considered an adjusting item. The Company expects to realize
approximately $25 million in
annualized EBITDA run-rate savings related to these plans. In the
fourth quarter of 2021, the Company recorded charges of
$19 million as a result of this
network optimization project. Further charges will be recorded as
they are incurred throughout 2022.
FINANCIAL SERVICES SEGMENT
- Revenue in the fourth quarter of 2021 was $360 million. This represented an increase of
$40 million when compared to the
fourth quarter of 2020. The increase was primarily driven by higher
interchange income from an increase in customer spending and an
increase in sales from The Mobile ShopTM.
- In the fourth quarter of 2021, earnings before income taxes
were $53 million. This represented an
increase in earnings of $20 million
when compared to the fourth quarter of 2020. The increase was
primarily driven by higher revenue as described above, the reversal
of commodity taxes that were accrued in the amount of $27 million, lower contractual charge-off and
lower funding costs. This was partially offset by higher loyalty
program costs and operating costs.
DECLARATION OF DIVIDENDS
Subsequent to the end of the fourth quarter of 2021, the Board
of Directors declared a quarterly dividend on Common Shares
and Second Preferred Shares, Series B.
Common
Shares
|
$0.365 per common
share, payable on April 1, 2022 to shareholders of record on March
15, 2022.
|
|
|
Second Preferred
Shares, Series B
|
$0.33125 per share,
payable on March 31, 2022 to shareholders of record on
March 15, 2022.
|
STRATEGIC UPDATE AND OUTLOOK(3)
Strategic Update
Two years into the pandemic, Loblaw's portfolio of businesses
remains strong and well-positioned. With best-in-class assets, the
Company continues to meet Canadians' everyday needs for food,
health and wellness in an evolving landscape. Management's
commitment to food and drug retail excellence comes with clarity
and a sense of urgency to continue to deliver steady performance
throughout 2022. This overarching priority is further strengthened
by four strategic initiatives which are expected to drive
incremental growth in the medium to long-term.
Retail Excellence Loblaw creates value
through the disciplined execution of core retail operations and by
leveraging its scale and strategic assets. Supported by ongoing
process and efficiency initiatives, retail excellence activities
focus on growing sales while improving gross margins and reducing
operating costs. In 2022, the Company is focused on strategic
buying and procurement opportunities to deliver reliability,
selection and economies of scale to support its grocery and
pharmacy network. Leveraging its customer loyalty program and
billions of customer interactions across food, pharmacy, apparel,
and financial services, Loblaw will increase its promotional
effectiveness while delivering personalized value and unmatched
service to Canadians. As announced in the third quarter of 2021,
the Company also continues to optimize its retail network, to
better serve customers and improve its overall profitability.
Strategic Growth Initiatives Loblaw continues
to invest in targeted areas to further differentiate its portfolio
of assets, generate competitive advantages in products, services
and price, improve its operational efficiencies, and create new
areas of growth. The four priority areas are: Digital Retail,
Loblaw Media, PC Optimum™ and Connected Healthcare. The Company's
Digital Retail platform delivered over $3.1
billion of sales in 2021 expanding its offering of food,
front store pharmacy, prescriptions, Joe
Fresh, and marketplace products. In 2022, the Company is
focused on opportunities to optimize operational efficiencies
particularly as they relate to delivery, and to offset the costs of
e-commerce fulfillment through additional promotional and
advertising strategies. The Loblaw Media platform presents the
opportunity to expand advertising opportunities on the Company's
digital platforms and in-stores, delivering an unmatched value
proposition to vendors. The Company's PC Optimum™ loyalty
program continues to evolve, with increasing digital engagement,
more meaningful personalized offers, and an improving campaign
return on investment while strengthening the loyalty loop and
increasing share of customer wallet. Over the longer-term, Loblaw's
Connected Healthcare strategy will grow its ecosystem by connecting
patients and providers, underpinned by an unmatched network of
pharmacies and healthcare professionals. In 2021, the rollout of
tools, technology and centralized services allowed pharmacists to
play an elevated role in the delivery of care, and the Company saw
over 172% of growth in pharmacy services revenue. The Company will
continue to expand the capability and reach of PC Health by
building on the momentum of its virtual care visits via Maple
Corporation and the recently announced partnership with Lifemark
Health Group, Canada's largest
physiotherapy and rehabilitation company.
Outlook(3)
Loblaw will continue to execute on retail excellence in its core
grocery, pharmacy and apparel businesses while advancing its growth
initiatives in 2022. In the third year of the pandemic, the
Company's businesses remain well placed to service the everyday
needs of Canadians. However, the Company cannot predict the precise
impacts of COVID-19 and the current industry volatility on its 2022
financial results. Loblaw anticipates that in the first half of
2022 sales will benefit from the continued impact of the pandemic
and elevated industry-wide inflation. As economies reopen and the
Company starts to lap elevated 2021 inflationary prices and
COVID-related pharmacy services, year on year revenue growth will
be more challenged.
The Company expects:
- its Retail business to grow earnings faster than sales;
- Earnings per Common Share growth in the low double digits, with
higher growth in the first half of the year;
- to invest approximately $1.4
billion in capital expenditures, net of proceeds from
property disposals, reflecting incremental store and distribution
network investments; and
- to return capital to shareholders by allocating a significant
portion of free cash flow to share repurchases.
NON-GAAP FINANCIAL MEASURES
The Company uses the following non-GAAP financial measures:
Retail segment gross profit; Retail segment adjusted gross profit;
Retail segment adjusted gross profit percentage; adjusted earnings
before income taxes, net interest expense and other financing
charges and depreciation and amortization ("adjusted EBITDA");
adjusted EBITDA margin; adjusted operating income; adjusted net
interest expense and other financing charges; adjusted income
taxes; adjusted effective tax rate; adjusted net earnings available
to common shareholders; adjusted diluted net earnings per common
share, free cash flow. The Company believes these non-GAAP
financial measures provide useful information to both management
and investors in measuring the financial performance and financial
condition of the Company for the reasons outlined below.
Management uses these and other non-GAAP financial measures to
exclude the impact of certain expenses and income that must be
recognized under GAAP when analyzing underlying consolidated and
segment operating performance, as the excluded items are not
necessarily reflective of the Company's underlying operating
performance and make comparisons of underlying financial
performance between periods difficult. The Company excludes
additional items if it believes doing so would result in a more
effective analysis of underlying operating performance. The
exclusion of certain items does not imply that they are
non-recurring.
These measures do not have a standardized meaning prescribed by
GAAP and therefore they may not be comparable to similarly titled
measures presented by other publicly traded companies and should
not be construed as an alternative to other financial measures
determined in accordance with GAAP.
Retail Segment Gross Profit, Retail Segment Adjusted Gross
Profit and Retail Segment Adjusted Gross Profit
Percentage The following tables reconcile adjusted
gross profit by segment to gross profit by segment, which is
reconciled to revenue and cost of merchandise inventories sold
measures as reported in the consolidated statements of earnings for
the periods ended as indicated. The Company believes that Retail
segment gross profit and Retail segment adjusted gross profit are
useful in assessing the Retail segment's underlying operating
performance and in making decisions regarding the ongoing
operations of the business.
Retail segment adjusted gross profit percentage is calculated as
Retail segment adjusted gross profit divided by Retail segment
revenue.
|
|
|
|
2021
|
2020
|
|
(12
weeks)
|
(13 weeks)
|
For the periods ended
January 1, 2022
and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations
|
Total
|
Retail
|
Financial
Services
|
Eliminations
|
Total
|
(millions of Canadian
dollars)
|
Revenue
|
$
|
12,486
|
$
|
360
|
$
|
(89)
|
$
|
12,757
|
$
|
13,043
|
$
|
320
|
$
|
(77)
|
$
|
13,286
|
Cost of
merchandise
inventories sold
|
|
8,627
|
|
78
|
|
—
|
|
8,705
|
|
9,211
|
|
67
|
|
—
|
|
9,278
|
Gross
profit
|
$
|
3,859
|
$
|
282
|
$
|
(89)
|
$
|
4,052
|
$
|
3,832
|
$
|
253
|
$
|
(77)
|
$
|
4,008
|
Adjusted gross
profit
|
$
|
3,859
|
$
|
282
|
$
|
(89)
|
$
|
4,052
|
$
|
3,832
|
$
|
253
|
$
|
(77)
|
$
|
4,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
2020
|
|
(52
weeks)
|
(53 weeks)
|
For the years ended
January 1, 2022
and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations
|
Total
|
Retail
|
Financial
Services
|
Eliminations
|
Total
|
(millions of Canadian
dollars)
|
Revenue
|
$
|
52,269
|
$
|
1,182
|
$
|
(281)
|
$
|
53,170
|
$
|
51,859
|
$
|
1,097
|
$
|
(242)
|
$
|
52,714
|
Cost of
merchandise
inventories sold
|
|
36,228
|
|
208
|
|
—
|
36,436
|
|
36,559
|
|
166
|
|
—
|
|
36,725
|
Gross
profit
|
$
|
16,041
|
$
|
974
|
$
|
(281)
|
$
|
16,734
|
$
|
15,300
|
$
|
931
|
$
|
(242)
|
$
|
15,989
|
Adjusted gross
profit
|
$
|
16,041
|
$
|
974
|
$
|
(281)
|
$
|
16,734
|
$
|
15,300
|
$
|
931
|
$
|
(242)
|
$
|
15,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income, Adjusted EBITDA and Adjusted
EBITDA Margin The following tables reconcile
adjusted operating income and adjusted EBITDA to operating income,
which is reconciled to net earnings attributable to shareholders of
the Company as reported in the consolidated statements of earnings
for the periods ended as indicated. The Company believes that
adjusted EBITDA is useful in assessing the performance of its
ongoing operations and its ability to generate cash flows to fund
its cash requirements, including the Company's capital investment
program.
Adjusted EBITDA margin is calculated as adjusted EBITDA divided
by revenue.
|
|
|
|
2021
|
2020(4)
|
|
(12
weeks)
|
(13 weeks)
|
For the periods ended
January 1, 2022 and January 2, 2021
|
Retail
|
Financial
Services
|
Consolidated
|
Retail
|
Financial
Services
|
Consolidated
|
(millions of Canadian
dollars)
|
Net earnings
attributable to shareholders of the
Company
|
|
|
|
$
|
747
|
|
|
|
|
$
|
348
|
Add impact of the
following:
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
(28)
|
|
|
|
|
46
|
Net interest expense
and other financing charges
|
|
|
|
(29)
|
|
|
|
|
166
|
Income
taxes
|
|
|
|
15
|
|
|
|
|
142
|
Operating
income
|
$
|
636
|
$
|
69
|
$
|
705
|
$
|
649
|
$
|
53
|
$
|
702
|
Add (deduct) impact
of the following:
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets acquired with
Shoppers Drug Mart
|
$
|
117
|
$
|
—
|
$
|
117
|
$
|
117
|
$
|
—
|
$
|
117
|
Restructuring and
other related costs
|
|
(8)
|
—
|
(8)
|
|
8
|
|
—
|
8
|
Fair value adjustment
on fuel and foreign
currency contracts
|
|
6
|
—
|
6
|
|
(7)
|
|
—
|
(7)
|
Gain on sale of
non-operating properties
|
|
—
|
—
|
—
|
|
(8)
|
|
—
|
(8)
|
Fair value adjustment
on non-operating properties
|
|
(2)
|
—
|
(2)
|
|
9
|
|
—
|
9
|
Adjusting
items
|
$
|
113
|
$
|
—
|
$
|
113
|
$
|
119
|
$
|
—
|
$
|
119
|
Adjusted operating
income
|
$
|
749
|
$
|
69
|
$
|
818
|
$
|
768
|
$
|
53
|
$
|
821
|
Depreciation and
amortization
|
|
612
|
11
|
623
|
|
600
|
|
9
|
609
|
Less: Amortization of
intangible assets acquired
with Shoppers Drug Mart
|
|
(117)
|
—
|
(117)
|
|
(117)
|
|
—
|
(117)
|
Adjusted
EBITDA
|
$
|
1,244
|
$
|
80
|
$
|
1,324
|
$
|
1,251
|
$
|
62
|
$
|
1,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
2020(4)
|
|
(52
weeks)
|
(53 weeks)
|
For the years ended
January 1, 2022 and January 2, 2021
|
Retail
|
Financial
Services
|
Consolidated
|
Retail
|
Financial
Services
|
Consolidated
|
(millions of Canadian
dollars)
|
Net earnings
attributable to shareholders of the
Company
|
|
|
|
$
|
1,875
|
|
|
|
|
$
|
1,108
|
Add impact of the
following:
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
101
|
|
|
|
|
84
|
Net interest expense
and other financing charges
|
|
|
|
495
|
|
|
|
|
742
|
Income
taxes
|
|
|
|
466
|
|
|
|
|
431
|
Operating
income
|
$
|
2,713
|
$
|
224
|
$
|
2,937
|
$
|
2,231
|
$
|
134
|
$
|
2,365
|
Add (deduct) impact
of the following:
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets acquired with
Shoppers Drug Mart
|
$
|
506
|
$
|
—
|
$
|
506
|
$
|
509
|
$
|
—
|
$
|
509
|
Restructuring and
other related costs
|
|
13
|
—
|
13
|
|
38
|
|
—
|
38
|
Fair value adjustment
on non-operating
properties
|
|
(2)
|
—
|
(2)
|
|
9
|
|
—
|
9
|
Gain on sale of
non-operating properties
|
|
(12)
|
—
|
(12)
|
|
(9)
|
|
—
|
(9)
|
Fair value adjustment
on fuel and foreign currency contracts
|
|
(13)
|
—
|
(13)
|
|
5
|
|
—
|
5
|
Adjusting
items
|
$
|
492
|
$
|
—
|
$
|
492
|
$
|
552
|
$
|
—
|
$
|
552
|
Adjusted operating
income
|
$
|
3,205
|
$
|
224
|
$
|
3,429
|
$
|
2,783
|
$
|
134
|
$
|
2,917
|
Depreciation and
amortization
|
|
2,623
|
41
|
2,664
|
|
2,571
|
|
25
|
2,596
|
Less: Amortization of
intangible assets acquired
with Shoppers Drug Mart
|
|
(506)
|
—
|
(506)
|
|
(509)
|
|
—
|
(509)
|
Adjusted
EBITDA
|
$
|
5,322
|
$
|
265
|
$
|
5,587
|
$
|
4,845
|
$
|
159
|
$
|
5,004
|
|
|
|
|
|
|
|
|
|
|
In addition to the items described in the Retail segment
adjusted gross profit section above, adjusted EBITDA was impacted
by the following:
Amortization of intangible assets acquired with
Shoppers Drug Mart The acquisition of
Shoppers Drug Mart in 2014 included approximately $6,050 million of definite life intangible
assets, which are being amortized over their estimated useful
lives. Annual amortization associated with the acquired intangibles
will be approximately $500 million until 2024 and will
decrease thereafter.
Restructuring and other related costs The
Company continuously evaluates strategic and cost reduction
initiatives related to its store infrastructure, distribution
networks and administrative infrastructure with the objective of
ensuring a low cost operating structure. Only restructuring
activities that are publicly announced related to these initiatives
are considered adjusting items.
In the fourth quarter of 2021, the Company recovered
approximately $8 million of
restructuring and other related recoveries related to the
previously announced closure of two distribution centres in
Laval and Ottawa. The recovery is due to a true-up in
estimate of restructuring charges. The year-to-date restructuring
and other related charges were $13 million. The Company is
investing to build a modern and efficient expansion to its
Cornwall distribution centre to
serve its food and drug retail businesses in Ontario and Quebec. Volumes from the distribution centre
in Laval will be transferred to
Cornwall and the Company expects
to incur additional restructuring costs in 2022 related to these
closures.
Fair value adjustment on non-operating
properties The Company measures non-operating
properties, which are investment properties and assets held for
sale that were transferred from investment properties, at fair
value. Under the fair value model, non-operating properties are
initially measured at cost and subsequently measured at fair value.
Fair value using the income approach include assumptions as to
market rental rates for properties of similar size and condition
located within the same geographical areas, recoverable operating
costs for leases with tenants, non-recoverable operating costs,
vacancy periods, tenant inducements and terminal capitalization
rates. Gains and losses arising from changes in the fair value are
recognized in operating income in the period in which they
arise.
Fair value adjustment on fuel and foreign currency
contracts The Company is exposed to commodity price
and U.S. dollar exchange rate fluctuations. In accordance with the
Company's commodity risk management policy, the Company enters into
exchange traded futures contracts and forward contracts to minimize
cost volatility relating to fuel prices and the U.S. dollar
exchange rate. These derivatives are not acquired for trading or
speculative purposes. Pursuant to the Company's derivative
instruments accounting policy, changes in the fair value of these
instruments, which include realized and unrealized gains and
losses, are recorded in operating income. Despite the impact of
accounting for these commodity and foreign currency derivatives on
the Company's reported results, the derivatives have the economic
impact of largely mitigating the associated risks arising from
price and exchange rate fluctuations in the underlying commodities
and U.S. dollar commitments.
Gain/loss on sale of non-operating properties In
2021, the Company record a gain related to the sale of
non-operating properties of $12
million. In 2020, the Company disposed of non-operating
properties to a third party and recorded a gain of $9 million related to the sale.
Adjusted Net Interest (Recovery)/Expense and Other Financing
Charges The following table reconciles adjusted net
interest (recovery)/expense and other financing charges to net
interest (recovery)/expense and other financing charges as reported
in the consolidated statements of earnings for the periods ended as
indicated. The Company believes that adjusted net interest
(recovery)/expense and other financing charges is useful in
assessing the Company's underlying financial performance and in
making decisions regarding the financial operations of the
business.
|
|
|
|
|
For the periods ended
January 1, 2022 and January 2, 2021
|
2021
|
2020
|
2021
|
2020
|
(millions of Canadian
dollars)
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
Net interest
(recovery)/expense and other financing
charges
|
$
|
(29)
|
$
|
166
|
$
|
495
|
$
|
742
|
Recovery related to
Glenhuron
|
|
189
|
|
—
|
|
189
|
|
—
|
Adjusted net interest
expense and other financing
charges
|
$
|
160
|
$
|
166
|
$
|
684
|
$
|
742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery related to Glenhuron In the fourth
quarter of 2021, the Company recorded a recovery of $301 million related to the Supreme Court's
decision on Glenhuron. Of the total recovery, $173 million was recorded in net interest and
other financing charges and $128
million was recorded in income taxes. In addition, interest
of $16 million, before taxes was recorded in respect of
interest income earned on expected cash tax refunds.
Adjusted Income Taxes and Adjusted Effective Tax Rate The
following table reconciles adjusted income taxes to income taxes as
reported in the consolidated statements of earnings for the periods
ended as indicated. The Company believes that adjusted income taxes
is useful in assessing the Company's underlying operating
performance and in making decisions regarding the ongoing
operations of its business.
Adjusted effective tax rate is calculated as adjusted income
taxes divided by the sum of adjusted operating income less adjusted
net interest (recovery)/expense and other financing charges.
|
|
|
|
|
For the periods ended
January 1, 2022 and January 2, 2021
|
2021
|
2020(4)
|
2021
|
2020(4)
|
(millions of Canadian
dollars except where otherwise indicated)
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
Adjusted operating
income(i)
|
$
|
818
|
$
|
821
|
$
|
3,429
|
$
|
2,917
|
Adjusted net interest
expense and other financing
charges(i)
|
|
160
|
|
166
|
|
684
|
|
742
|
Adjusted earnings
before taxes
|
$
|
658
|
$
|
655
|
$
|
2,745
|
$
|
2,175
|
Income
taxes
|
$
|
15
|
$
|
142
|
$
|
466
|
$
|
431
|
Add (deduct) impact
of the following:
|
|
|
|
|
|
|
|
|
Tax impact of items
included in adjusted earnings
before taxes(ii)
|
|
25
|
|
33
|
|
127
|
|
149
|
Recovery related to
Glenhuron
|
|
128
|
|
—
|
|
128
|
$
|
—
|
Adjusted income
taxes
|
$
|
168
|
$
|
175
|
$
|
721
|
$
|
580
|
Effective tax
rate
|
|
2.0%
|
|
26.5%
|
|
19.1%
|
|
26.6%
|
Adjusted income tax
rate
|
|
25.5%
|
|
26.7%
|
|
26.3%
|
|
26.7%
|
|
|
|
|
|
|
|
|
|
(i)
|
See reconciliations
of adjusted operating income and adjusted net interest
(recovery)/expense and other financing charges in the tables
above.
|
(ii)
|
See the adjusted
operating income, adjusted EBITDA and adjusted EBITDA margin table
and the adjusted net (recovery)/interest expense and other
financing charges table above for a complete list of items included
in adjusted earnings before taxes.
|
Recovery related to Glenhuron In the fourth
quarter of 2021, the Company recorded a recovery of $301 million related to the Supreme Court's
decision on Glenhuron. Of the total recovery, $173 million was recorded in net interest and
other financing charges and $128
million was recorded in income taxes. In addition, interest
of $16 million, before taxes was recorded in respect of
interest income earned on expected cash tax refunds.
Adjusted Net Earnings Available to Common
Shareholders and Adjusted Diluted Net Earnings Per Common
Share The following table reconciles adjusted net
earnings available to common shareholders of the Company and
adjusted net earnings attributable to shareholders of the Company
to net earnings attributable to shareholders of the Company and
then to net earnings available to common shareholders of the
Company for the periods ended as indicated. The Company believes
that adjusted net earnings available to common shareholders and
adjusted diluted net earnings per common share are useful in
assessing the Company's underlying operating performance and in
making decisions regarding the ongoing operations of its
business.
|
|
|
|
|
|
|
|
|
For the periods ended
January 1, 2022 and January 2, 2021
|
2021
|
2020(4)
|
2021
|
2020(4)
|
(millions of Canadian
dollars except where otherwise indicated)
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
Net earnings
attributable to shareholders of the Company
|
$
|
747
|
$
|
348
|
$
|
1,875
|
$
|
1,108
|
Prescribed dividends
on preferred shares in share capital
|
|
(3)
|
|
(3)
|
|
(12)
|
|
(12)
|
Net earnings
available to common shareholders of the Company
|
$
|
744
|
$
|
345
|
$
|
1,863
|
$
|
1,096
|
Net earnings
attributable to shareholders of the Company
|
$
|
747
|
$
|
348
|
$
|
1,875
|
$
|
1,108
|
Adjusting items
(refer to the following table)
|
|
(229)
|
|
86
|
|
48
|
|
403
|
Adjusted net earnings
attributable to shareholders of the Company
|
$
|
518
|
$
|
434
|
$
|
1,923
|
$
|
1,511
|
Prescribed dividends
on preferred shares in share capital
|
|
(3)
|
|
(3)
|
|
(12)
|
|
(12)
|
Adjusted net earnings
available to common shareholders of the Company
|
$
|
515
|
$
|
431
|
$
|
1,911
|
$
|
1,499
|
Diluted weighted
average common shares outstanding (millions)
|
|
338.1
|
|
353.8
|
|
341.8
|
|
358.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
2020(4)
|
2021
|
2020(4)
|
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
For the periods ended
January 1, 2022
and January 2, 2021
(millions of Canadian
dollars/
Canadian dollars)
|
Net Earnings
(Losses)
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
(Losses)
Per
Common
Share
|
Net Earnings
(Losses)
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
(Losses)
Per
Common
Share
|
Net Earnings
(Losses)
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
(Losses)
Per
Common
Share
|
Net Earnings
(Losses)
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
(Losses)
Per
Common
Share
|
As
reported
|
$
|
744
|
$
|
2.20
|
$
|
345
|
$
|
0.98
|
$
|
1,863
|
$
|
5.45
|
$
|
1,096
|
$
|
3.06
|
Add (deduct) impact
of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets acquired
with Shoppers Drug Mart
|
$
|
87
|
$
|
0.25
|
$
|
86
|
$
|
0.23
|
$
|
372
|
$
|
1.09
|
$
|
373
|
$
|
1.03
|
Fair value adjustment
on fuel and foreign
currency contracts
|
|
4
|
|
0.01
|
|
(5)
|
|
(0.01)
|
|
(10)
|
|
(0.03)
|
|
4
|
|
0.01
|
Fair value adjustment
on non-operating
properties
|
|
(1)
|
|
—
|
|
7
|
|
0.02
|
|
(1)
|
|
—
|
|
7
|
|
0.02
|
Restructuring and other
related costs
|
|
(6)
|
|
(0.02)
|
|
5
|
|
0.02
|
|
10
|
|
0.03
|
|
27
|
|
0.08
|
Gain on sale of
non-operating properties
|
|
—
|
|
—
|
|
(7)
|
|
(0.02)
|
|
(10)
|
|
(0.03)
|
|
(8)
|
|
(0.02)
|
Recovery related to
Glenhuron
|
|
(313)
|
|
(0.92)
|
|
—
|
|
—
|
|
(313)
|
|
(0.92)
|
|
—
|
|
—
|
Adjusting
items
|
$
|
(229)
|
$
|
(0.68)
|
$
|
86
|
$
|
0.24
|
$
|
48
|
$
|
0.14
|
$
|
403
|
$
|
1.12
|
Adjusted(i)
|
$
|
515
|
$
|
1.52
|
$
|
431
|
$
|
1.22
|
$
|
1,911
|
$
|
5.59
|
$
|
1,499
|
$
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow(2) The following table
reconciles, by reportable operating segments, free cash flow to
cash flows from operating activities as reported in the
consolidated statements of cash flows for the periods ended as
indicated. The Company believes that free cash flow is the
appropriate measure in assessing the Company's cash available for
additional financing and investing activities.
|
|
|
|
2021
|
2020
|
|
(12
weeks)
|
(13 weeks)
|
For the periods ended
January 1, 2022 and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Consolidated
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Consolidated
|
(millions of Canadian
dollars)
|
Cash flows from (used
in) operating activities
|
$
|
1,193
|
$
|
(186)
|
$
|
17
|
$
|
1,024
|
$
|
1,399
|
$
|
(44)
|
$
|
25
|
$
|
1,380
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
investments
|
|
381
|
|
11
|
|
—
|
|
392
|
|
413
|
|
5
|
|
—
|
|
418
|
Interest
paid
|
|
58
|
|
—
|
|
17
|
|
75
|
|
46
|
|
—
|
|
25
|
|
71
|
Lease payments,
net
|
|
294
|
|
—
|
|
—
|
|
294
|
|
285
|
|
—
|
|
—
|
|
285
|
Free cash
flow(2)
|
$
|
460
|
$
|
(197)
|
$
|
—
|
$
|
263
|
$
|
655
|
$
|
(49)
|
$
|
—
|
$
|
606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Interest
paid is included in cash flows used in operating activities under
the Financial Services segment.
|
|
|
|
|
2021
|
2020
|
|
(52
weeks)
|
(53 weeks)
|
For the years ended
January 1, 2022 and January 2, 2021
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Consolidated
|
Retail
|
Financial
Services
|
Eliminations(i)
|
Consolidated
|
(millions of Canadian
dollars)
|
Cash flows from (used
in) operating activities
|
$
|
4,775
|
$
|
(16)
|
$
|
68
|
$
|
4,827
|
$
|
4,424
|
$
|
683
|
$
|
84
|
$
|
5,191
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
investments
|
|
1,154
|
|
29
|
|
—
|
|
1,183
|
|
1,193
|
|
31
|
|
—
|
|
1,224
|
Interest
paid
|
|
271
|
|
—
|
|
68
|
|
339
|
|
252
|
|
—
|
|
84
|
|
336
|
Lease payments,
net
|
|
1,346
|
|
—
|
|
—
|
|
1,346
|
|
1,384
|
|
—
|
|
—
|
|
1,384
|
Free cash
flow(2)
|
$
|
2,004
|
$
|
(45)
|
$
|
—
|
$
|
1,959
|
$
|
1,595
|
$
|
652
|
$
|
—
|
$
|
2,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Interest
paid is included in cash flows used in operating activities under
the Financial Services segment.
|
Non-GAAP Financial Measures Policy Change Commencing Fiscal
2021
In 2020, management undertook a review of historical adjusting
items as part of an effort to reduce the number of items it
excludes from its non-GAAP financial measures. Management concluded
that, in order to present adjusting items in a manner more
consistent with that of its Canadian and U.S. peers, the Company
will no longer adjust for fixed asset and other related impairments
(net of recoveries), certain restructuring and other related costs,
pension settlement costs, statutory income tax rate changes or
other items.
Starting in the first quarter of 2021, restructuring and other
related costs will be considered an adjusting item only if
significant and if part of a publicly announced restructuring plan.
Other unusual items will be assessed on a case by case basis based
on their nature, magnitude and propensity to re-occur. This change
took effect in the first quarter of 2021 with restatement of
comparative periods at that time.
The below summary reconciles the non-GAAP financial measures as
previously reported in 2020 and 2019 to those reported under the
new policy starting in the first quarter of 2021:
|
12 weeks
ended
March 21,
2020
|
12 weeks
ended
June 13,
2020
|
16 weeks ended
October 3, 2020
|
13 weeks ended
January 2, 2021
|
53 weeks ended
January 2, 2021
|
|
Retail
|
Financial
Services
|
Consol-
idated
|
Retail
|
Financial
Services
|
Consol-
idated
|
Retail
|
Financial
Services
|
Consol-
idated
|
Retail
|
Financial
Services
|
Consol-
idated
|
Retail
|
Financial
Services
|
Consol-
idated
|
(millions of Canadian
dollars)
|
Adjusted operating
income
- Previously reported
|
$
|
691
|
$
|
3
|
$
|
694
|
$
|
502
|
$
|
34
|
$
|
536
|
$
|
840
|
$
|
44
|
$
|
884
|
$
|
787
|
$
|
53
|
$
|
840
|
$
|
2,820
|
$
|
134
|
$
|
2,954
|
Add (deduct) impact
of the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
following:
|
Fixed asset and
other
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(17)
|
$
|
—
|
$
|
(17)
|
$
|
(17)
|
$
|
—
|
$
|
(17)
|
related Impairments,
net of recoveries
|
Restructuring
and other
|
|
(4)
|
|
—
|
|
(4)
|
|
(8)
|
|
—
|
|
(8)
|
|
(6)
|
|
—
|
|
(6)
|
|
(2)
|
|
—
|
|
(2)
|
|
(20)
|
|
—
|
|
(20)
|
related costs
|
Adjusting
Items
|
$
|
(4)
|
$
|
—
|
$
|
(4)
|
$
|
(8)
|
$
|
—
|
$
|
(8)
|
$
|
(6)
|
$
|
—
|
$
|
(6)
|
$
|
(19)
|
$
|
—
|
$
|
(19)
|
$
|
(37)
|
$
|
—
|
$
|
(37)
|
Adjusted operating
income -
|
$
|
687
|
$
|
3
|
$
|
690
|
$
|
494
|
$
|
34
|
$
|
528
|
$
|
834
|
$
|
44
|
$
|
878
|
$
|
768
|
$
|
53
|
$
|
821
|
$
|
2,783
|
$
|
134
|
$
|
2,917
|
Restated
|
Depreciation and
amortization
|
|
589
|
|
5
|
|
594
|
|
593
|
|
5
|
|
598
|
|
789
|
|
6
|
|
795
|
|
600
|
|
9
|
|
609
|
|
2,571
|
|
25
|
|
2,596
|
Less: Amortization
of
|
|
(119)
|
|
—
|
|
(119)
|
|
(118)
|
|
—
|
|
(118)
|
|
(155)
|
|
—
|
|
(155)
|
|
(117)
|
|
—
|
|
(117)
|
|
(509)
|
|
—
|
|
(509)
|
intangible assets
acquired with Shoppers Drug Mart
|
Adjusted EBITDA -
Restated
|
$
|
1,157
|
$
|
8
|
$
|
1,165
|
$
|
969
|
$
|
39
|
$
|
1,008
|
$
|
1,468
|
$
|
50
|
$
|
1,518
|
$
|
1,251
|
$
|
62
|
$
|
1,313
|
$
|
4,845
|
$
|
159
|
$
|
5,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Earnings Available to Common Shareholders and
Adjusted Diluted Net earnings per Common Share are presented
below:
|
|
|
|
|
|
|
12 weeks ended
March 21, 2020
|
12 weeks ended
June 13, 2020
|
16 weeks ended
October 3, 2020
|
13 weeks ended
January 2, 2021
|
53 weeks ended
January 2, 2021
|
|
Net Earnings
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
|
Diluted
Net
Earnings
Per
Common
Share
|
(millions of Canadian
dollars/Canadian dollars)
|
Adjusted - As
previously reported
|
$
|
352
|
$
|
0.97
|
$
|
266
|
$
|
0.74
|
$
|
464
|
$
|
1.30
|
$
|
445
|
$
|
1.26
|
$
|
1,527
|
$
|
4.26
|
Add (deduct) impact
of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset and other
related impairments, net of recoveries
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(13)
|
$
|
(0.04)
|
$
|
(13)
|
$
|
(0.04)
|
Restructuring and
other related costs
|
|
(3)
|
|
—
|
|
(6)
|
|
(0.02)
|
|
(5)
|
|
(0.02)
|
|
(1)
|
|
—
|
|
(15)
|
|
(0.04)
|
Adjusting
items
|
$
|
(3)
|
$
|
—
|
$
|
(6)
|
$
|
(0.02)
|
$
|
(5)
|
$
|
(0.02)
|
$
|
(14)
|
$
|
(0.04)
|
$
|
(28)
|
$
|
(0.08)
|
Adjusted -
Restated
|
$
|
349
|
$
|
0.97
|
$
|
260
|
$
|
0.72
|
$
|
459
|
$
|
1.28
|
$
|
431
|
$
|
1.22
|
$
|
1,499
|
$
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This policy change did not impact previously reported Retail
segment gross profit, Retail segment adjusted gross profit and
Retail segment adjusted gross profit percentage or adjusted net
interest (recovery)/expense and other financing charges, as
reported in the Company's 2020 annual and interim MD&A.
SELECTED FINANCIAL INFORMATION
The following includes selected quarterly and annual financial
information, which is prepared by management in accordance
with International Financial Reporting Standards ("IFRS") and
is based on the Company's audited annual consolidated financial
statements for the year ended January 1,
2022. This financial information does not contain all
disclosures required by IFRS, and accordingly, should be read in
conjunction with the Company's 2020 Annual Report, which is
available in the Investors section of the Company's website at
loblaw.ca and on sedar.com.
Consolidated Statements of Earnings
|
|
|
|
|
(millions of Canadian
dollars except where otherwise indicated)
|
January 1,
2022
|
January 2,
2021
|
January 1,
2022
|
January 2,
2021
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
(unaudited)
|
(unaudited)
|
(audited)
|
(audited)
|
Revenue
|
$
|
12,757
|
$
|
13,286
|
$
|
53,170
|
$
|
52,714
|
Cost of
merchandise inventories sold
|
|
8,705
|
|
9,278
|
|
36,436
|
|
36,725
|
Selling, general
and administrative expenses
|
|
3,347
|
|
3,306
|
|
13,797
|
|
13,624
|
Operating
income
|
$
|
705
|
$
|
702
|
$
|
2,937
|
$
|
2,365
|
Net interest expense
and other financing charges
|
|
(29)
|
|
166
|
|
495
|
|
742
|
Earnings before
income taxes
|
$
|
734
|
$
|
536
|
$
|
2,442
|
$
|
1,623
|
Income
taxes
|
|
15
|
|
142
|
|
466
|
|
431
|
Net
earnings
|
$
|
719
|
$
|
394
|
$
|
1,976
|
$
|
1,192
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
$
|
747
|
$
|
348
|
$
|
1,875
|
$
|
1,108
|
Non-controlling
interests
|
|
(28)
|
|
46
|
|
101
|
|
84
|
Net
earnings
|
$
|
719
|
$
|
394
|
$
|
1,976
|
$
|
1,192
|
Net earnings per
Common Share ($)
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.23
|
$
|
0.98
|
$
|
5.49
|
$
|
3.08
|
Diluted
|
$
|
2.20
|
$
|
0.98
|
$
|
5.45
|
$
|
3.06
|
Weighted average
Common Shares outstanding (millions)
|
|
|
|
|
|
|
|
|
Basic
|
|
334.2
|
|
351.3
|
|
339.1
|
|
355.5
|
Diluted
|
|
338.1
|
|
353.8
|
|
341.8
|
|
358.2
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
As
at
|
As at
|
(millions of Canadian
dollars)
|
January 1,
2022
|
January 2,
2021(6)
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,976
|
$
|
1,668
|
Short term
investments
|
|
464
|
|
269
|
Accounts
receivable
|
|
947
|
|
977
|
Credit card
receivables
|
|
3,443
|
|
3,109
|
Inventories
|
|
5,166
|
|
5,195
|
Income tax
recoverable
|
|
301
|
|
—
|
Prepaid expenses and
other assets
|
|
249
|
|
216
|
Assets held for
sale
|
|
91
|
|
108
|
Total current
assets
|
$
|
12,637
|
$
|
11,542
|
Fixed
assets
|
|
5,447
|
|
5,540
|
Right-of-use
assets
|
|
7,175
|
|
7,207
|
Investment
properties
|
|
111
|
|
128
|
Intangible
assets
|
|
6,402
|
|
6,870
|
Goodwill
|
|
3,949
|
|
3,948
|
Deferred income tax
assets
|
|
91
|
|
113
|
Other
assets
|
|
802
|
|
525
|
Total
assets
|
$
|
36,614
|
$
|
35,873
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Bank
indebtedness
|
$
|
52
|
$
|
86
|
Trade payables and
other liabilities
|
|
5,433
|
|
5,395
|
Loyalty
liability
|
|
190
|
|
194
|
Provisions
|
|
111
|
|
81
|
Income taxes
payable
|
|
153
|
|
83
|
Demand deposits from
customers
|
|
75
|
|
24
|
Short term
debt
|
|
450
|
|
575
|
Long term debt due
within one year
|
|
1,002
|
|
597
|
Lease liabilities due
within one year
|
|
1,297
|
|
1,379
|
Associate
interest
|
|
433
|
|
349
|
Total current
liabilities
|
$
|
9,196
|
$
|
8,763
|
Provisions
|
|
114
|
|
132
|
Long term
debt
|
|
6,211
|
|
6,449
|
Lease
liabilities
|
|
7,542
|
|
7,522
|
Deferred income tax
liabilities
|
|
1,346
|
|
1,380
|
Other
liabilities
|
|
468
|
|
508
|
Total
liabilities
|
$
|
24,877
|
$
|
24,754
|
Equity
|
|
|
|
|
Share
capital
|
$
|
6,852
|
$
|
7,045
|
Retained
earnings
|
|
4,591
|
|
3,813
|
Contributed
surplus
|
|
116
|
|
109
|
Accumulated other
comprehensive income
|
|
14
|
|
21
|
Total equity
attributable to shareholders of the Company
|
$
|
11,573
|
$
|
10,988
|
Non-controlling
interests
|
|
164
|
|
131
|
Total
equity
|
$
|
11,737
|
$
|
11,119
|
Total liabilities
and equity
|
$
|
36,614
|
$
|
35,873
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
January 1,
2022
|
January 2,
2021
|
January 1,
2022
|
January 2,
2021
|
(millions of Canadian
dollars)
|
(12
weeks)
|
(13 weeks)
|
(52
weeks)
|
(53 weeks)
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
719
|
$
|
394
|
$
|
1,976
|
$
|
1,192
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
15
|
|
142
|
|
466
|
|
431
|
Net interest
(recovery) expense and other financing charges
|
|
(29)
|
|
166
|
|
495
|
|
742
|
Adjustment to fair
value of investment properties
|
|
(2)
|
|
9
|
|
(2)
|
|
9
|
Depreciation and
amortization
|
|
623
|
|
609
|
|
2,664
|
|
2,596
|
Asset impairments, net
of recoveries
|
|
46
|
|
19
|
|
54
|
|
33
|
Change in allowance
for credit card receivables
|
|
—
|
|
(10)
|
|
(32)
|
|
41
|
Change in
provisions
|
|
(6)
|
|
(8)
|
|
12
|
|
4
|
|
$
|
1,366
|
$
|
1,321
|
$
|
5,633
|
$
|
5,048
|
Change in non-cash
working capital
|
|
100
|
|
253
|
|
90
|
|
76
|
Change in gross credit
card receivables
|
|
(289)
|
|
(91)
|
|
(302)
|
|
474
|
Income taxes
paid
|
|
(161)
|
|
(105)
|
|
(643)
|
|
(452)
|
Interest
received
|
|
—
|
|
1
|
|
4
|
|
7
|
Interest received from
finance leases
|
|
1
|
|
1
|
|
4
|
|
4
|
Other
|
|
7
|
|
—
|
|
41
|
|
34
|
Cash flows from
operating activities
|
$
|
1,024
|
$
|
1,380
|
$
|
4,827
|
$
|
5,191
|
Investing
activities
|
|
|
|
|
|
|
|
|
Fixed asset
purchases
|
$
|
(286)
|
$
|
(350)
|
$
|
(803)
|
$
|
(820)
|
Intangible asset
additions
|
|
(106)
|
|
(68)
|
|
(379)
|
|
(338)
|
Cash assumed on
initial consolidation of franchises
|
|
—
|
|
—
|
|
—
|
|
14
|
Change in short term
investments
|
|
129
|
|
76
|
|
(164)
|
|
(212)
|
Proceeds from disposal
of assets
|
|
24
|
|
25
|
|
80
|
|
76
|
Lease payments
received from finance leases
|
|
5
|
|
2
|
|
14
|
|
9
|
Other
|
|
(15)
|
|
40
|
|
(19)
|
|
(105)
|
Cash flows used in
investing activities
|
$
|
(249)
|
$
|
(275)
|
$
|
(1,271)
|
$
|
(1,376)
|
Financing
activities
|
|
|
|
|
|
|
|
|
Change in bank
indebtedness
|
$
|
(114)
|
$
|
(107)
|
$
|
(34)
|
$
|
68
|
Change in short term
debt
|
|
150
|
|
75
|
|
(125)
|
|
(150)
|
Change in demand
deposits from customers
|
|
16
|
|
24
|
|
51
|
|
24
|
Long term
debt
|
|
|
|
|
|
|
|
|
Issued
|
|
214
|
|
84
|
|
772
|
|
1,417
|
Retired
|
|
(171)
|
|
(261)
|
|
(603)
|
|
(1,486)
|
Interest
paid
|
|
(75)
|
|
(71)
|
|
(339)
|
|
(336)
|
Cash rent paid on
lease liabilities - Interest
|
|
(77)
|
|
(84)
|
|
(340)
|
|
(369)
|
Cash rent paid on
lease liabilities - Principal
|
|
(222)
|
|
(200)
|
|
(1,020)
|
|
(1,024)
|
Dividends paid on
common and preferred shares
|
|
(125)
|
|
(120)
|
|
(484)
|
|
(580)
|
Common share
capital
|
|
|
|
|
|
|
|
|
Issued
|
|
24
|
|
1
|
|
102
|
|
30
|
Purchased and held in
trust
|
|
(50)
|
|
—
|
|
(50)
|
|
(10)
|
Purchased and
cancelled
|
|
(200)
|
|
(350)
|
|
(1,200)
|
|
(888)
|
Proceeds from other
financing
|
|
12
|
|
46
|
|
12
|
|
46
|
Other
|
|
40
|
|
23
|
|
9
|
|
(24)
|
Cash flows used in
financing activities
|
$
|
(578)
|
$
|
(940)
|
$
|
(3,249)
|
$
|
(3,282)
|
Effect of foreign
currency exchange rate changes on
cash and cash equivalents
|
$
|
(1)
|
$
|
4
|
$
|
1
|
$
|
2
|
Change in cash and
cash equivalents
|
$
|
196
|
$
|
169
|
$
|
308
|
$
|
535
|
Cash and cash
equivalents, beginning of period
|
|
1,780
|
|
1,499
|
|
1,668
|
|
1,133
|
Cash and cash
equivalents, end of period
|
$
|
1,976
|
$
|
1,668
|
$
|
1,976
|
$
|
1,668
|
|
|
|
|
|
|
|
|
|
FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the
Company's objectives, plans, goals, aspirations, strategies,
financial condition, results of operations, cash flows,
performance, prospects, opportunities and legal and regulatory
matters. Specific forward-looking statements in this News Release
include, but are not limited to, statements with respect to the
Company's anticipated future results, events and plans, strategic
initiatives and restructuring, regulatory changes including further
healthcare reform, future liquidity, planned capital investments,
and the status and impact of Information Technology systems
implementation. These specific forward-looking statements are
contained throughout this News Release including, without
limitation, in the "Consolidated Results of Operations" and
"Outlook" section of this News Release. Forward-looking statements
are typically identified by words such as "expect", "anticipate",
"believe", "foresee", "could", "estimate", "goal", "intend",
"plan", "seek", "strive", "will", "may", "should" and similar
expressions, as they relate to the Company and its management.
Forward-looking statements reflect the Company's estimates,
beliefs and assumptions, which are based on management's perception
of historical trends, current conditions and expected future
developments, as well as other factors it believes are appropriate
in the circumstances. The Company's estimates, beliefs and
assumptions are inherently subject to significant business,
economic, competitive and other uncertainties and contingencies
regarding future events, including the COVID-19 pandemic and as
such, are subject to change. The Company can give no assurance that
such estimates, beliefs and assumptions will prove to be
correct.
Numerous risks and uncertainties could cause the Company's
actual results to differ materially from those expressed, implied
or projected in the forward-looking statements, including those
described in the Company's MD&A in the 2021 Annual Report and
Section 4 "Risks" of the Company's 2021 Annual Information Form for
the year ended January 1, 2022, which
include detailed risks and disclosure regarding COVID-19 and its
impact on the Company.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect the Company's
expectations only as of the date of this News Release. Except as
required by law, the Company does not undertake to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
CORPORATE PROFILE
2021 Annual Report
The Company's 2021 Annual Report is available in the "Investors"
section of the Company's website at loblaw.ca and on sedar.com.
Additional financial information has been filed electronically
with various securities regulators in Canada through the System for Electronic
Document Analysis and Retrieval (SEDAR) and with the Office of the
Superintendent of Financial Institutions (OSFI) as the primary
regulator for the Company's subsidiary, President's Choice Bank.
The Company holds an analyst call shortly following the release of
its quarterly results. These calls are archived in the "Investors"
section of the Company's website at loblaw.ca.
Conference Call and Webcast
Loblaw Companies Limited will host a conference call as well as
an audio webcast on February 24,
2022 at 10:00 a.m. (ET).
To access via tele-conference, please dial (416) 764-8688 or
(888) 390-0546. The playback will be made available approximately
two hours after the event at (416) 764-8677 or (888) 390-0541,
access code: 189623#. To access via audio webcast, please go to the
"Investor" section of loblaw.ca. Pre-registration will be
available.
Full details about the conference call and webcast are available
on the Loblaw Companies Limited website at loblaw.ca.
News Release
Endnotes
|
(1)
|
This News Release
contains forward-looking information. See "Forward-Looking
Statements" section of this News Release and the Company's 2021
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 sedar.com and at loblaw.ca.
|
(2)
|
See "Non-GAAP
Financial Measures" section of this News Release, which includes
the reconciliation of such non-GAAP measures to the most directly
comparable GAAP measures.
|
(3)
|
To be read in
conjunction with the "Forward-Looking Statements" section of this
News Release and the Company's 2021 Fourth Quarter Report to
Shareholders.
|
(4)
|
Certain figures have
been restated due to the non-GAAP financial measures policy change.
See section 17 "Non-GAAP Financial Measures" of the Company's 2021
Annual Report - Financial Review.
|
(5)
|
Compound Average
Growth Rate ("CAGR") is the measure of annualized growth over a
period longer than one year. CAGR as disclosed by the Company is
the mean annual growth rate over a two year period, 2019 to
2021.
|
(6)
|
Certain comparative
figures have been restated to conform with current year
presentation.
|
SOURCE Loblaw Companies Limited