Overview Key strengths Key risks Largest Canadian grocery retailer, with significant exposure to discount format. Mature and commoditized grocery industry in Canada. Well-diversified mix of retail banners and private-label brands support business strength. Inflationary pressure amid macroeconomic headwinds could limit profitability margins. Stable EBITDA and strong free operating cash flow (FOCF) support credit metrics. Most FOCF used to fund large shareholder buybacks that support earnings per share growth targets. In the first quarter of fiscal 2025 (ended March 22, 2025), Loblaw?s adjusted revenue (excluding PC Bank) increased by 4.1% to C$13.8 billion, led by 2.2% food same-store sales growth and solid pharmacy momentum. We expect Loblaw?s performance to remain resilient against a backdrop of macroeconomic headwinds, heightened price sensitivity among
