Loblaw reports Q1 profit and sales up from year ago, raises quarterly dividend

A man leaves a Loblaws store in Toronto. THE CANADIAN PRESS/Nathan Denette

BRAMPTON — Loblaw Cos. Ltd. raised its quarterly dividend by 10 per cent as it reported its first-quarter profit and revenue rose compared with a year ago.

The company behind Loblaws and Shoppers Drug Mart said the results came as its discount grocery banners outperformed and its drugstore business saw growth in prescription drug sales.

“We are very pleased that our strategic investments in opening new stores, and our focus on value, are resonating with Canadians and helping us to deliver strong financial results,” Loblaw chief executive Per Bank said in a statement.

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Loblaw reported a profit attributable to common shareholders of $594 million or 50 cents per diluted share for the 12-week period ended March 28, up from $503 million or 42 cents per diluted share a year earlier.

Revenue, including both its retail operations and the PC Financial business which is being sold to EQB Inc., totalled $14.72 billion, up from $14.14 billion in the first quarter of 2025.

The increase came as food retail same-store sales rose 2.4 per cent. Drug retail same-store sales gained 4.1 per cent as pharmacy and health-care services same-store sales gained 6.7 per cent and front store same-store sales rose one per cent.

On an adjusted basis, Loblaw said it earned 52 cents per diluted share in its latest quarter, up from an adjusted profit of 47 cents per diluted share in the first quarter of 2025.

The retailer said it will now pay a quarterly dividend of 15.5183 cents per share, up from 14.1075 cents per share.

The company’s deal to sell its PC Financial business cleared its final regulatory hurdle this week with approval from the federal finance minister. The green light followed clearance from the federal banking regulator and the Competition Bureau for the deal first announced by the companies in December.

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EQ Bank now expects the deal, which will see Loblaw acquire a 16 per cent stake in the bank, to close this summer.

The $800-million cash-and-share deal will see EQ Bank take over PC Financials’ Mastercard and banking customers, boosting its customer base from around 800,000 to 3.3 million.

EQ Bank will also become the exclusive financial partner of the Optimum loyalty program.

This report by The Canadian Press was first published May 6, 2026.

Read more:

• Federal finance minister approves EQB deal to buy PC Financial from Loblaw
• Loblaw Cos. Ltd. signs partnership deal with Canadian AI firm Shakudo
• Privacy Commissioner probe finds Loblaw took too long to delete PC Optimum accounts