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Cision Canada
29-07-2025
- Business
- Cision Canada
George Weston Reports Strong Operating Performance Offset by Earnings Impact of Fair Value Adjustment Related to Choice Properties Unit Price Gain of 4.9% Français
TORONTO, July 29, 2025 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended June 14, 2025 (2). GWL's 2025 Second Quarter Report has been filed on SEDAR+ and is available at and in the Investor Centre section of the Company's website at "George Weston had another strong quarter of operational and financial performance," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Our operating businesses continue to position George Weston for success as Loblaw delivers on its strategy while providing exceptional value for Canadians, and Choice Properties strengthened its portfolio with disciplined property acquisitions and divestitures." Loblaw Companies Limited ("Loblaw") delivered strong performance this quarter by continuing to provide Canadians with quality, value, service, and convenience across its nationwide network of stores and digital platforms. Strong sales growth was driven by new store openings and improved same-store sales, with everyday value offerings, personalized PC Optimum™ loyalty rewards, and impactful promotions driving higher customer engagement. In the food retail business, consumers continued to focus on value, which resulted in outperformance by hard discount and Real Canadian Superstores banners. Same-store traffic, basket size, and item count all increased compared to the same quarter last year. Food retail tonnage volume also increased, reflecting solid market share gains within both discount and conventional segments. In drug retail, robust pharmacy and healthcare services drove continued strength, led by specialty drug growth. Front store sales momentum continued, particularly in prestige beauty categories, partially offset by the strategic exit from certain electronics items. Loblaw advanced its full-year plan to open approximately 80 new stores and 100 new pharmacy clinics, providing access to affordable, quality groceries and healthcare to more communities across Canada. This included opening 10 stores and 12 pharmacy clinics in the quarter, bringing the year-to-date total to 20 new stores and 23 new pharmacy clinics. In addition, Loblaw continued to successfully execute the ramp-up of its East Gwillimbury distribution centre. Choice Properties Real Estate Investment Trust ("Choice Properties") delivered another solid quarter, reflecting the strength of its portfolio and disciplined financial strategy. Robust demand for Choice Properties' grocery-anchored retail and well-located industrial assets supported its performance. Choice Properties further strengthened its position by advancing its strategic priorities through $427 million in transactions. GWL also separately announced today a 3-for-1 common share stock split to ensure its common shares remain accessible to retail investors and employees who participate in the Company's employee share ownership program. The stock split will not dilute shareholders' equity. The stock split will be implemented by way of a stock dividend. Further details are provided in the Company's separate news release of July 29, 2025. 2025 SECOND QUARTER HIGHLIGHTS Revenue was $14,823 million, an increase of $732 million, or 5.2%. Adjusted EBITDA (1) was $1,923 million, an increase of $117 million, or 6.5%. Net earnings available to common shareholders of the Company were $258 million ($1.96 per common share), compared to $400 million ($2.97 per common share) in the same period in 2024. The decrease was primarily due to the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the increase of Choice Properties' unit price in the quarter, partially offset by the favourable impact of lapping prior year charges. Adjusted net earnings available to common shareholders of the Company (1) were $401 million, an increase of $7 million, or 1.8%. Contribution to adjusted net earnings available to common shareholders of the Company (1) from the publicly traded operating companies was $443 million, an increase of $17 million, or 4.0%. Adjusted diluted net earnings per common share (1) were $3.06, an increase of $0.13 per common share, or 4.4%. Repurchased for cancellation 1.1 million common shares at a cost of $295 million. GWL Corporate free cash flow (1) was $293 million. Subsequent to the end of the second quarter of 2025, the Company's Board of Directors approved a 3-for-1 stock split of the Company's outstanding common shares. The stock split will be implemented by way of a stock dividend where the Company will issue to shareholders two additional common shares for each common share held. The stock split will be effective at the close of business on August 18, 2025 for shareholders of record as of the close of business on August 14, 2025. For details regarding the stock split, please see the Company's news release at CONSOLIDATED RESULTS OF OPERATIONS The Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company's financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company's financial statements reflects the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate. The Company's results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations of Choice Properties' Trust Units on the basis that the Trust Units held by Unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company's consolidated balance sheet. The Company's financial results are negatively impacted when the Trust Unit price increases and positively impacted when the Trust Unit price declines. ($ millions except where otherwise indicated) For the periods ended as indicated 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 $ Change % Change Revenue $ 14,823 $ 14,091 $ 732 5.2 % Operating income $ 1,440 $ 795 $ 645 81.1 % Adjusted EBITDA (1) from: Loblaw $ 1,838 $ 1,711 $ 127 7.4 % Choice Properties 252 240 12 5.0 % Effect of consolidation (157) (140) (17) (12.1) % Publicly traded operating companies (i) $ 1,933 $ 1,811 $ 122 6.7 % GWL Corporate (10) (5) (5) (100.0) % Adjusted EBITDA (1) $ 1,923 $ 1,806 $ 117 6.5 % Adjusted EBITDA margin (1) 13.0 % 12.8 % Net earnings attributable to shareholders of the Company $ 268 $ 410 $ (142) (34.6) % Loblaw (ii) $ 377 $ 241 $ 136 56.4 % Choice Properties (154) 514 (668) (130.0) % Effect of consolidation 61 (154) 215 139.6 % Publicly traded operating companies (i) $ 284 $ 601 $ (317) (52.7) % GWL Corporate (26) (201) 175 87.1 % Net earnings available to common shareholders of the Company $ 258 $ 400 $ (142) (35.5) % Diluted net earnings per common share ($) $ 1.96 $ 2.97 $ (1.01) (34.0) % Loblaw (ii) $ 381 $ 350 $ 31 8.9 % Choice Properties 112 105 7 6.7 % Effect of consolidation (50) (29) (21) (72.4) % Publicly traded operating companies (i) $ 443 $ 426 $ 17 4.0 % GWL Corporate (42) (32) (10) (31.3) % Adjusted net earnings available to common shareholders of the Company (1) $ 401 $ 394 $ 7 1.8 % Adjusted diluted net earnings per common share (1) ($) $ 3.06 $ 2.93 $ 0.13 4.4 % (i) Publicly traded operating companies is the contribution to the Company's financial performance from its controlling interest in Loblaw and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See "Results by Operating Segment" section of this News Release for further information. (ii) Contribution from Loblaw, net of non-controlling interests. Net earnings available to common shareholders of the Company in the second quarter of 2025 were $258 million ($1.96 per common share), a decrease of $142 million ($1.01 per common share) compared to the same period in 2024. The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share), partially offset by an improvement of $7 million ($0.13 per common share) in the consolidated underlying operating performance of the Company. The unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share) was primarily due to: the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $462 million ($3.50 per common share) as a result of the increase in Choice Properties' unit price in the second quarter of 2025; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million ($0.29 per common share) that was determined to be no longer required at Choice Properties; partially offset by, the favourable year-over-year impact of prior year charges related to the settlement of class action lawsuits of $253 million ($1.89 per common share); the favourable year-over-year impact of lower amortization of intangible assets at Loblaw of $41 million ($0.31 per common share) primarily related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") which are now fully amortized; the favourable year-over-year impact of the fair value adjustment on Choice Properties' investment in real estate securities of Allied Properties Real Estate Investment Trust ("Allied") of $33 million ($0.25 per common share) as a result of the change in Allied's unit price; and the favourable year-over-year impact of the fair value adjustment on investment properties of $29 million ($0.23 per common share) driven by Choice Properties, net of the effect of consolidation. Adjusted net earnings available to common shareholders of the Company (1) in the second quarter of 2025 were $401 million, an increase of $7 million, or 1.8%, compared to the same period in 2024. The increase was driven by the favourable year-over-year impact of $17 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $10 million at GWL Corporate due to the year-over-year impact of the fair value adjustment on other investments, an increase in adjusted net interest expense and other financing charges (1) and an increase in income tax expense related to GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB"). Adjusted diluted net earnings per common share (1) were $3.06 in the second quarter of 2025, an increase of $0.13 per common share, or 4.4%, compared to the same period in 2024. The increase was due to the performance in adjusted net earnings available to common shareholders (1) as described above and the favourable impact of shares purchased for cancellation over the last 12 months ($0.09 per common share) pursuant to the Company's NCIB. GWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities: NCIB – Purchased and Cancelled Shares In the second quarter of 2025, the Company purchased and cancelled 1.1 million common shares (2024 – 1.8 million common shares) for aggregate consideration of $295 million (2024 – $339 million) under its NCIB. As at June 14, 2025, the Company had 128.3 million common shares issued and outstanding, net of shares held in trusts (June 15, 2024 – 132.1 million common shares). The Company has an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. Refer to note 11, "Share Capital", of the Company's second quarter 2025 unaudited interim period condensed consolidated financial statements for more information. Participation in Loblaw's NCIB The Company participates in Loblaw's NCIB in order to maintain its proportionate percentage ownership interest. In the second quarter of 2025, Loblaw repurchased 0.9 million common shares (2024 – 1.3 million common shares) from the Company for aggregate consideration of $200 million (2024 – $190 million). 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 ($ millions) For the periods ended as indicated Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Revenue $ 14,672 $ 351 $ (200) $ — $14,823 $ 13,947 $ 336 $ (192) $ — $ 14,091 Operating income $ 1,237 $ 350 $ (136) $ (11) $ 1,440 $ 866 $ 273 $ (82) $ (262) $ 795 Adjusted operating income (1) 1,247 251 (73) (11) 1,414 1,147 239 (57) (6) 1,323 Adjusted EBITDA (1) $ 1,838 $ 252 $ (157) $ (10) $ 1,923 $ 1,711 $ 240 $ (140) $ (5) $ 1,806 Net interest expense (income) and other financing charges $ 212 $ 504 $ (231) $ 5 $ 490 $ 190 $ (241) $ 48 $ — $ (3) Adjusted net interest expense (income) and other financing charges (1) 212 139 (54) 5 302 190 134 (53) — 271 Earnings (loss) before income taxes $ 1,025 $ (154) $ 95 $ (16) $ 950 $ 676 $ 514 $ (130) $ (262) $ 798 Income taxes $ 270 $ — $ 34 $ (2) $ 302 $ 180 $ — $ 24 $ (73) $ 131 Adjusted income taxes (1) 273 — 31 14 318 254 — 25 14 293 Net earnings attributable to non-controlling interests $ 378 $ — $ — $ 2 $ 380 $ 255 $ — $ — $ 2 $ 257 Prescribed dividends on preferred shares in share capital — — — 10 10 — — — 10 10 Net earnings (loss) available to common shareholders of the Company $ 377 $ (154) $ 61 $ (26) $ 258 $ 241 $ 514 $ (154) $ (201) $ 400 Adjusted net earnings available to common shareholders of the Company (1) 381 112 (50) (42) 401 350 105 (29) (32) 394 Effect of consolidation includes the following items: LOBLAW OPERATING RESULTS Loblaw has two reportable operating segments, retail and financial services, with all material operations carried out in Canada. Loblaw's retail segment consists primarily of food retail and drug retail. Loblaw provides Canadians with grocery, pharmacy and healthcare services, other health and beauty products, apparel, general merchandise and financial services. Revenue Loblaw revenue in the second quarter of 2025 was $14,672 million, an increase of $725 million, or 5.2%, compared to the same period in 2024, driven by an increase in retail sales and in financial services revenue. The sale of Wellwise by Shoppers™ (" Wellwise") was completed in the first quarter of 2025. Revenue related to Wellwise in the second quarter of 2025 was nil (2024 – $21 million). Excluding the impact of revenue related to Wellwise, revenue increased by 5.4%. Retail sales were $14,389 million, an increase of $731 million, or 5.4%, compared to the same period in 2024. The increase was primarily driven by the following factors: food retail sales were $10,213 million (2024 – $9,653 million) and food retail same-store sales growth was 3.5% (2024 – 0.2%); Loblaw's internal food inflation was lower than the Consumer Price Index for Food Purchased from Stores of 3.3% (2024 – 1.7%); and food retail traffic increased and basket size increased. drug retail sales were $4,176 million (2024 – $4,005 million) and drug retail same-store sales growth was 4.1% (2024 – 1.5%); pharmacy and healthcare services same-store sales growth was 6.2% (2024 – 5.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 3.1% (2024 – 2.1%) and the average prescription value increased by 3.9% (2024 – 1.9%); and front store same-store sales growth was 1.7% (2024 – decline of 2.4%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the second quarter of 2025, 10 food and drug stores were opened and 1 food and drug store was closed. Retail square footage was 72.5 million square feet, a net increase of 1.2 million square feet, or 1.7% compared to the same period in 2024. Financial services revenue was $377 million, an increase of $10 million, or 2.7%, compared to the same period in 2024, primarily driven by higher sales attributable to The Mobile Shop™ and higher insurance commission income, partially offset by lower interest income. Operating Income Loblaw operating income in the second quarter of 2025 was $1,237 million, an increase of $371 million, or 42.8%, compared to the same period in 2024. Adjusted EBITDA (1) Loblaw adjusted EBITDA (1) in the second quarter of 2025 was $1,838 million, an increase of $127 million, or 7.4%, compared to the same period in 2024, driven by an increase in retail of $110 million and an increase in financial services of $17 million. Retail adjusted EBITDA (1) increased by $110 million compared to the same period in 2024, driven by an increase in retail gross profit of $238 million, partially offset by an increase in retail selling, general and administrative expenses ("SG&A") of $128 million. Retail gross profit percentage of 32.0% was stable compared to the same period in 2024, primarily driven by improvements in shrink, offset by changes in sales mix in drug retail pharmacy categories. Retail SG&A as a percentage of sales was 19.8%, a favourable decrease of 10 basis points compared to the same period in 2024, primarily due to operating leverage from higher sales and the year-over-year impact of certain real estate activities, partially offset by incremental costs related to opening new stores and the automated distribution facility. Financial services adjusted EBITDA (1) increased by $17 million compared to the same period in 2024, primarily driven by higher revenue as described above, lower operating costs, and lower credit card receivable charge-offs. The increase was partially offset by higher loyalty program costs. Depreciation and Amortization Loblaw depreciation and amortization in the second quarter of 2025 was $600 million, a decrease of $79 million compared to the same period in 2024, primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart which are now fully amortized, partially offset by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group ("Lifemark") of $9 million (2024 – $115 million). Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada. Revenue Choice Properties revenue in the second quarter of 2025 was $351 million, an increase of $15 million, or 4.5%, compared to the same period in 2024 and included revenue of $201 million (2024 – $193 million) generated from tenants within Loblaw. The increase in revenue in the second quarter of 2025 was primarily driven by: higher rental rates primarily in the retail and industrial portfolios; and contributions from acquisitions, net of dispositions, and completed developments; partially offset by, lower lease surrender revenue. Net Interest Expense (Income) and Other Financing Charges Choice Properties net interest expense and other financing charges in the second quarter of 2025 were $504 million, compared to net interest income and other financing charges of $241 million in the same period in 2024. The change of $745 million was primarily driven by the unfavourable year-over-year change in the fair value adjustment on the Class B LP units ("Exchangeable Units") of $737 million, as a result of the increase in the unit price in the quarter. Net (Loss) Income Choice Properties recorded a net loss of $154 million in the second quarter of 2025, compared to net income of $514 million in the same period in 2024. The unfavourable change of $668 million was primarily driven by: higher net interest expense and other financing charges as described above; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million that was determined to be no longer required; partially offset by, the favourable year-over-year change in the fair value adjustment on investment properties, including those held within equity accounted joint ventures, of $67 million; the favourable year-over-year change in the fair value adjustment of investment in real estate securities of $37 million driven by the change in Allied's unit price; and an increase in rental revenue as described above. Funds from Operations (1) Funds from Operations (1) in the second quarter of 2025 were $192 million, an increase of $7 million compared to the same period in 2024. The increase was primarily due to an increase in rental income and lower general and administrative expenses. The increase was partially offset by higher interest expense and lower interest income. OUTLOOK (2) The Company's 2025 outlook remains unchanged and it continues to expect adjusted net earnings (1) to increase due to the results from its operating segments, and to use excess cash to repurchase shares. Loblaw Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. Loblaw's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, Loblaw's results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share (1) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, Loblaw continues to expect: its retail business to grow earnings faster than sales; adjusted net earnings per common share (1) growth in the high single-digits; to continue investing in its store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. Choice Properties Choice Properties is focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Its high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to its overall portfolio. Choice Properties will continue to advance its development program, with a focus on commercial developments, which provides the best opportunity to add high-quality real estate to its portfolio at a reasonable cost and drive net asset value appreciation over time. Choice Properties is confident that its business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to benefit its operations. In 2025, Choice Properties is targeting: stable occupancy across the portfolio, resulting in approximately 2% - 3% year-over-year growth in Same-Asset NOI, cash basis (3); annual FFO (1) per unit diluted (3) in a range of $1.05 to $1.06, reflecting approximately 2% - 3% year-over-year growth; and strong leverage metrics, targeting Adjusted Debt to EBITDAFV (3) below 7.5x. 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 implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "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 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 "Enterprise Risks and Risk Management" section of the Management's Discussion and Analysis in the Company's 2024 Annual Report and the Company's Annual Information Form for the year ended December 31, 2024. 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. DECLARATION OF QUARTERLY DIVIDENDS Subsequent to the end of the second quarter of 2025, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows: Common Shares $0.8938 per share (on a pre-stock split basis) payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series I $0.3625 per share payable September 15, 2025, to shareholders of record August 31, 2025; Preferred Shares, Series III $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series IV $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series V $0.296875 per share payable October 1, 2025, to shareholders of record September 15, 2025. 2025 SECOND QUARTER REPORT The Company's 2024 Annual Report and 2025 Second Quarter Report are available in the Investor Centre section of the Company's website at and have been filed on SEDAR+ and are available at INVESTOR RELATIONS Shareholders, security analysts and investment professionals should direct their requests to Roy MacDonald, Group Vice-President, Investor Relations, at the Company's Executive Office or by e-mail at [email protected]. Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR+. This News Release includes selected information on Loblaw, a public company with shares trading on the Toronto Stock Exchange ("TSX"), and selected information on Choice Properties, a public real estate investment trust with units trading on the TSX. For information regarding Loblaw or Choice Properties, readers should refer to the respective materials filed on SEDAR+ from time to time. These filings are also maintained on the respective companies' corporate websites at and Ce rapport est disponible en français. APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures and ratios as it believes these measures and ratios provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition. Further, certain non-GAAP measures and other financial measures of Loblaw and Choice Properties are included in this document. For more information on these measures, refer to the materials filed by Loblaw and Choice Properties, which are available on or at or respectively. Management uses these and other non-GAAP and other 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 adjusts for these 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. ADJUSTED EBITDA The Company believes adjusted EBITDA is useful in assessing and making decisions regarding the underlying operating performance of the Company's ongoing operations and in assessing the Company's ability to generate cash flows to fund its cash requirements, including its capital investment program. The following table reconciles adjusted EBITDA to operating income, which is reconciled to GAAP net earnings attributable to shareholders of the Company reported for the periods ended as indicated. (i) The following items impacted adjusted EBITDA in 2025 and 2024: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6 billion of definite life intangible assets, which are being amortized over their estimated useful lives. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, of which $110 million and $6 million was recorded in the first and second quarters of 2025, respectively. Annual amortization will be approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. Fair value adjustment of derivatives Loblaw is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with Loblaw's commodity risk management policy, Loblaw 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 Loblaw'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 Loblaw'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. Fair value adjustment on investment properties The Company measures investment properties at fair value. Under the fair value model, investment properties are initially measured at cost and subsequently measured at fair value. Fair value is determined based on available market evidence. If market evidence is not readily available in less active markets, the Company uses alternative valuation methods such as discounted cash flow projections or recent transaction prices. Gains and losses on fair value are recognized in operating income in the period in which they are incurred. Gains and losses from disposal of investment properties are determined by comparing the fair value of disposal proceeds and the carrying amount and are recognized in operating income. Fair value adjustment of investment in real estate securities Choice Properties received Allied Class B Units as part of the consideration for the Choice Properties disposition of six office assets to Allied in 2022. Choice Properties recognized these units as investments in real estate securities. The investment in real estate securities is exposed to market price fluctuations of Allied trust units. An increase (decrease) in the market price of Allied trust units results in income (a charge) to operating income. Gain on sale of non-operating property In the second quarter of 2025, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $1 million (2024 – nil). Charges related to settlement of class action lawsuits On July 24, 2024, the Company and Loblaw entered into binding Minutes of Settlement and on January 31, 2025, the Company and Loblaw entered into a Settlement Agreement to resolve nationwide class action lawsuits against them relating to their role in an industry-wide price-fixing arrangement involving certain packaged bread products. In the second quarter of 2024, the Company and Loblaw recorded charges of $256 million and $164 million, respectively, in SG&A, relating to the settlement and related costs. The Settlement Agreement was approved by the Ontario Superior Court of Justice in May 2025 and if approved by the court in Quebec, it will resolve all of the consumers' claims against the Company and Loblaw relating to this matter. Transaction costs and other related recoveries In the second quarter of 2024, Choice Properties recorded a reversal of a transaction related provision for $39 million that was determined to be no longer required. ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGES The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company. The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated. The following item impacted adjusted net interest expense and other financing charges in 2025 and 2024: Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by Unitholders other than the Company. These Trust Units are presented as a liability on the Company's consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting date based on the market price of Trust Units at the end of each period. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges. ADJUSTED INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATE The Company believes the adjusted effective tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business. The following table reconciles the effective tax rate applicable to adjusted earnings before taxes to the GAAP effective tax rate applicable to earnings before taxes as reported for the periods ended as indicated. 12 Weeks Ended ($ millions except where otherwise indicated) Jun. 14, 2025 Jun. 15, 2024 Adjusted operating income (i) $ 1,414 $ 1,323 Adjusted net interest expense and other financing charges (i) 302 271 Adjusted earnings before taxes $ 1,112 $ 1,052 Income taxes $ 302 $ 131 Add impact of the following: Tax impact of items excluded from adjusted earnings before taxes (ii) — 142 Outside basis difference in certain Loblaw shares 16 20 Adjusted income taxes $ 318 $ 293 Effective tax rate applicable to earnings before taxes 31.8 % 16.4 % Adjusted effective tax rate applicable to adjusted earnings before taxes 28.6 % 27.9 % (i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above. (ii) See the adjusted EBITDA table and the adjusted net interest expense and other financing charges table above for a complete list of items excluded from adjusted earnings before taxes. In addition to certain items described in the "Adjusted EBITDA" and "Adjusted Net Interest Expense and Other Financing Charges" sections above, the following item impacted adjusted income taxes and the adjusted effective tax rate in 2025 and 2024: Outside basis difference in certain Loblaw shares The Company recorded a deferred tax recovery of $16 million in the second quarter of 2025 (2024 – $20 million) on temporary differences in respect of GWL's investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL's participation in Loblaw's NCIB. ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE The Company believes that adjusted net earnings available to common shareholders and adjusted diluted net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted net earnings attributable to shareholders of the Company to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company reported for the periods ended as indicated. ($ millions except where otherwise indicated) 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 Net earnings attributable to shareholders of the Company $ 268 $ 410 Less: Prescribed dividends on preferred shares in share capital (10) (10) Net earnings available to common shareholders of the Company $ 258 $ 400 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Net earnings available to common shareholders for diluted earnings per share $ 254 $ 397 Net earnings attributable to shareholders of the Company $ 268 $ 410 Adjusting items (refer to the following table) 143 (6) Adjusted net earnings attributable to shareholders of the Company $ 411 $ 404 Less: Prescribed dividends on preferred shares in share capital (10) (10) Adjusted net earnings available to common shareholders of the Company $ 401 $ 394 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Adjusted net earnings available to common shareholders for diluted earnings per share $ 397 $ 391 Diluted weighted average common shares outstanding (in millions) 129.6 133.6 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to GAAP net earnings available to common shareholders of the Company and diluted net earnings per common share as reported for the periods ended as indicated. (i) Contribution from Loblaw, net of non-controlling interests. (ii) Net of income taxes and non-controlling interests, as applicable. GWL CORPORATE FREE CASH FLOW GWL Corporate free cash flow is generated from dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw's NCIB, less corporate expenses, interest and income taxes paid. (i) GWL Corporate, financing, and other costs includes all other company level activities that are not allocated to the reportable operating segments such as net interest expense, corporate activities, administrative costs and changes in non-cash working capital. Also included are preferred share dividends. CHOICE PROPERTIES' FUNDS FROM OPERATIONS Choice Properties considers Funds from Operations to be a useful measure of operating performance as it adjusts for items included in net income that do not arise from operating activities or do not necessarily provide an accurate depiction of its performance. Funds from Operations is calculated in accordance with the Real Property Association of Canada's Funds from Operations & Adjusted Funds from Operations for International Financial Reporting Standards issued in January 2022. The following table reconciles Choice Properties' Funds from Operations to net income for the periods ended as indicated. SOURCE George Weston Limited
Cision Canada
24-07-2025
- Business
- Cision Canada
Loblaw Reports Revenue Growth of 5.2% in the Second Quarter, Reflecting Higher Customer Traffic and Unit Sales, and Larger Baskets Français
BRAMPTON, ON, July 24, 2025 /CNW/ - Loblaw Companies Limited (TSX: L) ("Loblaw" or the "Company") announced today its unaudited financial results for the second quarter ended June 14, 2025. (1) Loblaw delivered strong performance this quarter by continuing to provide Canadians with quality, value, service, and convenience across its nationwide network of stores and digital platforms. Strong sales growth was driven by new store openings and improved same-store sales, with everyday value offerings, personalized PC Optimum™ loyalty rewards, and impactful promotions driving higher customer engagement. In the Food Retail business, consumers continued to focus on value, which resulted in outperformance by Hard Discount and Real Canadian Superstores banners. Same-store traffic, basket size, and item count all increased compared to the same quarter last year. Food Retail tonnage volume also increased, reflecting solid market share gains within both discount and conventional segments. In Drug Retail, robust pharmacy and healthcare services drove continued strength, led by specialty drug growth. Front store sales momentum continued, particularly in prestige beauty categories, partially offset by the strategic exit from certain electronics items. Loblaw advanced its full-year plan to open approximately 80 new stores and 100 new pharmacy clinics, providing access to affordable, quality groceries and healthcare to more communities across Canada. This included opening 10 stores and 12 pharmacy clinics in the quarter, bringing the year-to-date total to 20 new stores and 23 new pharmacy clinics. In addition, the Company continued to successfully execute the ramp-up of its East Gwillimbury distribution centre. Loblaw also separately announced today a 4-for-1 common share stock split to ensure its common shares remain accessible to retail investors and the thousands of employees who participate in the Company's employee share ownership program. The stock split will not dilute shareholders' equity. The stock split will be implemented by way of a stock dividend. Further details are provided in the Company's separate news release of July 24, 2025. "Canadians are seeking value, quality and service and are increasingly rewarding us for delivering on their needs, resulting in sales and market share growth," said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. "We are bringing our value focus to more and more communities across Canada through our new store openings, with 61 new stores opened since last year." 2025 SECOND QUARTER HIGHLIGHTS Revenue was $14,672 million, an increase of $725 million, or 5.2%. The sale of Wellwise by Shoppers™ (" Wellwise") was completed in the first quarter of 2025. Revenue related to Wellwise in the second quarter of 2025 was nil (2024 – $21 million). Excluding the impact of revenue related to Wellwise, revenue increased by 5.4%. Retail segment sales were $14,389 million, an increase of $731 million, or 5.4%. Food Retail (Loblaw) same-stores sales increased by 3.5%. Drug Retail (Shoppers Drug Mart) same-store sales increased by 4.1%, with pharmacy and healthcare services same-store sales growth of 6.2% and front store same-store sales growth of 1.7%. E-commerce sales increased by 17.5%. Operating income was $1,239 million, an increase of $371 million, or 42.7%. Adjusted EBITDA (2) was $1,840 million, an increase of $127 million, or 7.4%. Retail segment gross profit percentage (2) was stable at 32.0%. Net earnings available to common shareholders of the Company were $714 million, an increase of $257 million or 56.2%. Diluted net earnings per common share were $2.37, an increase of $0.89, or 60.1%. 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") which are now fully amortized and lapping of prior year charges. Adjusted net earnings available to common shareholders of the Company (2) were $721 million, an increase of $57 million, or 8.6%. Adjusted diluted net earnings per common share (2) were $2.40, an increase of $0.25 or 11.6%. Net capital investments were $239 million, which reflects gross capital investments of $409 million, net of proceeds from property disposals of $170 million. Repurchased for cancellation 2.05 million common shares at a cost of $445 million. Free cash flow (2) from the Retail segment was $640 million. Subsequent to the end of the second quarter of 2025, the Company's Board of Directors approved a 4-for-1 stock split of the Company's outstanding common shares. The stock split will be implemented by way of a stock dividend where the Company will issue to shareholders three additional common shares for each common share held. The stock split will be effective at the close of business on August 18, 2025 for shareholders of record as of the close of business on August 14, 2025. For details regarding the stock split, please see the Company's news release at The following table provides key performance metrics for the Company by segment. 2025 2024 (12 weeks) (12 weeks) For the periods ended June 14, 2025 and June 15, 2024 Retail Financial Services Elimi- nations Total Retail Financial Services Elimi- nations Total (millions of Canadian dollars except where otherwise indicated) Revenue $ 14,389 $ 377 $ (94) $ 14,672 $ 13,658 $ 367 $ (78) $ 13,947 Gross profit (2) $ 4,608 $ 335 $ (94) $ 4,849 $ 4,370 $ 329 $ (78) $ 4,621 Gross profit % (2) 32.0 % N/A — % 33.0 % 32.0 % N/A — % 33.1 % Operating income $ 1,170 $ 69 $ — $ 1,239 $ 815 $ 53 $ — $ 868 Adjusted operating income (2) 1,180 69 — 1,249 1,096 53 — 1,149 Adjusted EBITDA (2) $ 1,759 $ 81 $ — $ 1,840 $ 1,649 $ 64 $ — $ 1,713 Adjusted EBITDA margin (2) 12.2 % N/A — % 12.5 % 12.1 % N/A — % 12.3 % Net interest expense and other financing charges $ 173 $ 39 $ — $ 212 $ 153 $ 37 $ — $ 190 Earnings before income taxes $ 997 $ 30 $ — $ 1,027 $ 662 $ 16 $ — $ 678 Income taxes $ 270 $ 180 Adjusted income taxes (2) 273 254 Net earnings attributable to non-controlling interests $ 43 $ 38 Prescribed dividends on preferred shares in share capital — 3 Net earnings available to common shareholders of the Company $ 714 $ 457 Adjusted net earnings available to common shareholders of the Company (2) 721 664 Diluted net earnings per common share ($) $ 2.37 $ 1.48 Adjusted diluted net earnings per common share (2) ($) $ 2.40 $ 2.15 Diluted weighted average common shares outstanding (in millions) 300.9 308.8 The following table provides a breakdown of the Company's total and same-store sales for the Retail segment. Retail segment sales in the second quarter of 2025 were $14,389 million, an increase of $731 million, or 5.4%. Food Retail (Loblaw) sales were $10,213 million and same-store sales grew by 3.5% (2024 – 0.2%). The Company's internal food inflation was lower than the Consumer Price Index for Food Purchased From Stores of 3.3% (2024 – 1.7%); and Food Retail traffic increased and basket size increased. Drug Retail (Shoppers Drug Mart) sales were $4,176 million, and same-store sales grew by 4.1% (2024 – 1.5%), with pharmacy and healthcare services same-store sales growth of 6.2% (2024 – 5.4%) and front store same-store sales growth of 1.7% (2024 – decline of 2.4%). Pharmacy and healthcare services same-store sales growth was 6.2% (2024 – 5.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 3.1% (2024 – 2.1%) and the average prescription value increased by 3.9% (2024 – 1.9%). Front store same-store sales growth was 1.7% (2024 – decline of 2.4%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the second quarter of 2025, 10 food and drug stores were opened and 1 food and drug store was closed. Retail square footage was 72.5 million square feet, a net increase of 1.2 million square feet, or 1.7% compared to the second quarter of 2024. Operating income in the second quarter of 2025 was $1,170 million, an increase of $355 million, or 43.6%. Gross profit (2) in the second quarter of 2025 was $4,608 million, an increase of $238 million, or 5.4%. The gross profit percentage (2) of 32.0% was stable, primarily driven by improvements in shrink, offset by changes in sales mix in Drug Retail pharmacy categories. Adjusted EBITDA (2) in the second quarter of 2025 was $1,759 million, an increase of $110 million, or 6.7%. The increase was driven by an increase in gross profit (2), partially offset by an increase in selling, general and administrative expenses ("SG&A"). SG&A as a percentage of sales was 19.8%, a favourable decrease of 10 basis points, primarily due to operating leverage from higher sales and the year-over-year impact of certain real estate activities, partially offset by incremental costs related to opening new stores and the automated distribution facility. Depreciation and amortization in the second quarter of 2025 was $588 million, a decrease of $80 million or 12.0%, primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart which are now fully amortized, partially offset by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group ("Lifemark") of $9 million (2024 – $115 million). FINANCIAL SERVICES SEGMENT Revenue in the second quarter of 2025 was $377 million, an increase of $10 million or 2.7%. The increase was primarily driven by higher sales attributable to The Mobile Shop™ and higher insurance commission income, partially offset by lower interest income. Earnings before income taxes in the second quarter of 2025 were $30 million, an increase of $14 million or 87.5%. The increase was primarily driven by higher revenue described above, lower operating costs and lower credit card receivable charge-offs. This increase was partially offset by higher loyalty program costs. OUTLOOK (3) Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. The Company's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, the Company's results will include the impact of a 53 rd week, which is expected to benefit adjusted net earnings per common share (2) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53 rd week, the Company continues to expect: its Retail business to grow earnings faster than sales; adjusted net earnings per common share (2) growth in the high single-digits; to continue investing in our store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") In the second quarter of 2025, the Company continued to progress its two key pillars that underpin the Company's commitment to Canada's prosperity – fighting climate change and advancing social equity. Notably, the renewable energy purchase agreement between Loblaw and TC Energy Corporation came into effect in 2025. This agreement ensures that 100% of the electricity that the Company purchases directly for its supermarkets, drug stores, offices and distribution centers at over 300 sites in Alberta is sourced from wind and solar power. And the 2025 Shoppers Drug Mart® Run for Women drew participants and fundraisers across 18 communities. With over 29,000 participants, this event successfully raised more than $3.8 million to support local women's mental health programs throughout Canada. During the second quarter of 2025, the Company repurchased 2.05 million common shares for cancellation at a cost of $445 million. On a year-to-date basis, the Company repurchased 4.5 million common shares for cancellation at a cost of $902 million. From time to time, the Company participates in an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. 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 IT systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Consolidated and Segment Results of Operations" and "Outlook" sections 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 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 Management Discussion & Analysis ("MD&A") in the 2024 Annual Report, and the Company's Annual Information Form ("AIF") for the year ended December 28, 2024. 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. DECLARATION OF DIVIDENDS Subsequent to the end of the second quarter of 2025, the Board of Directors declared a quarterly dividend of $0.5643 per common share (on a pre-stock split basis), payable on October 1, 2025 to shareholders of record on September 15, 2025. EXCERPT OF NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures, as reconciled and fully described in Appendix 1 "Non-GAAP and Other Financial Measures" of this News Release. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards" or "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. The following table provides a summary of the differences between the Company's consolidated GAAP and Non-GAAP and other financial measures, which are reconciled and fully described in Appendix 1. (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 that were redeemed on January 8, 2025. The following table provides a summary of the Company's adjusting items which are reconciled and fully described in Appendix 1. For the periods ended June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars) (12 weeks) (12 weeks) Operating income $ 1,239 $ 868 Add (deduct) impact of the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark $ 9 $ 115 Fair value adjustment on fuel and foreign currency contracts 2 2 Charges related to settlement of class action lawsuits — 164 Gain on sale of non-operating property (1) — Adjusting items $ 10 $ 281 Adjusted operating income (2) $ 1,249 $ 1,149 Net interest expense and other financing charges $ 212 $ 190 Income taxes $ 270 $ 180 Add the impact of the following: Tax impact of items included in adjusted earnings before taxes $ 3 $ 74 Adjusting items $ 3 $ 74 Adjusted income taxes (2) $ 273 $ 254 CORPORATE PROFILE 2024 Annual Report and 2025 Second Quarter Report to Shareholders The Company's 2024 Annual Report and 2025 Second Quarter Report to Shareholders are available in the "Investors" section of the Company's website at and on Investor Relations Additional financial information has been filed electronically with various securities regulators in Canada through 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 ("PC 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 Conference Call and Webcast Loblaw Companies Limited will host a conference call as well as an audio webcast on July 24, 2025 at 10:00 a.m. (ET). To access via tele-conference, please dial (416) 945-7677 or (888) 699-1199. The playback will be made available approximately two hours after the event at (289) 819-1450 or (888) 660-6345, access code: 28537#. To access via audio webcast, please go to the "Investor" section of Pre-registration will be available. Full details about the conference call and webcast are available on the Loblaw Companies Limited website at APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses the following non-GAAP and other financial measures and ratios: 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, and same-store sales. The Company believes these non-GAAP and other financial measures and ratios 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 and other 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 adjusts for these 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 sales 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. 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. 2025 2024 (12 weeks) (12 weeks) For the periods ended June 14, 2025 and June 15, 2024 Retail Financial Services Total Retail Financial Services Total (millions of Canadian dollars) Net earnings attributable to shareholders of the Company $ 714 $ 460 Add impact of the following: Non-controlling interests 43 38 Net interest expense and other financing charges 212 190 Income taxes 270 180 Operating income $ 1,170 $ 69 $ 1,239 $ 815 $ 53 $ 868 Add (deduct) impact of the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark $ 9 $ — $ 9 $ 115 $ — $ 115 Fair value adjustment on fuel and foreign currency contracts 2 — 2 2 — 2 Charges related to settlement of class action lawsuits — — — 164 — 164 Gain on sale of non-operating property (1) — (1) — — — Adjusting items $ 10 $ — $ 10 $ 281 $ — $ 281 Adjusted operating income $ 1,180 $ 69 $ 1,249 $ 1,096 $ 53 $ 1,149 Depreciation and amortization 588 12 600 668 11 679 Less: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark (9) — (9) (115) — (115) Adjusted EBITDA $ 1,759 $ 81 $ 1,840 $ 1,649 $ 64 $ 1,713 In addition to the items described in the Retail segment adjusted gross profit section above, when applicable, adjusted EBITDA was impacted by the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark 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. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, of which $110 million and $6 million was recorded in the first and second quarters of 2025, respectively. Annual amortization will be approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. 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. Charges related to settlement of class action lawsuits On July 24, 2024, the Company and George Weston Limited ("Weston") entered into binding Minutes of Settlement and on January 31, 2025, the Company and Weston entered into a Settlement Agreement to resolve nationwide class action lawsuits against them relating to their role in an industry-wide price-fixing arrangement involving certain packaged bread products. In the second quarter of 2024, charges of $164 million were recorded in SG&A, relating to the Company's portion of the total settlement and related costs. The Settlement Agreement was approved by the Ontario Superior Court of Justice in May 2025 and if approved by the court in Quebec, it will resolve all of the consumers' claims against the Company and Weston relating to this matter. Gain on sale of non-operating property In the second quarter of 2025, the Company recorded a gain related to the sale of a non-operating property to a third party of $1 million (2024 – nil). Adjusted Net Interest Expense and Other Financing Charges The following table reconciles adjusted net interest expense and other financing charges to net interest 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 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. 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 expense and other financing charges. For the periods ended June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars except where otherwise indicated) (12 weeks) (12 weeks) Adjusted operating income (i) $ 1,249 $ 1,149 Adjusted net interest expense and other financing charges (i) 212 190 Adjusted earnings before taxes $ 1,037 $ 959 Income taxes $ 270 $ 180 Add impact of the following: Tax impact of items included in adjusted earnings before taxes (ii) 3 74 Adjusted income taxes $ 273 $ 254 Effective tax rate 26.3 % 26.5 % Adjusted effective tax rate 26.3 % 26.5 % (i) See reconciliations of adjusted operating income and adjusted net interest 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 interest expense and other financing charges table above for a complete list of items included in adjusted earnings before taxes. 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 June 14, 2025 and June 15, 2024 2025 2024 (millions of Canadian dollars except where otherwise indicated) (12 weeks) (12 weeks) Net earnings attributable to shareholders of the Company $ 714 $ 460 Prescribed dividends on preferred shares in share capital — (3) Net earnings available to common shareholders of the Company $ 714 $ 457 Net earnings attributable to shareholders of the Company $ 714 $ 460 Adjusting items (refer to the following table) 7 207 Adjusted net earnings attributable to shareholders of the Company $ 721 $ 667 Prescribed dividends on preferred shares in share capital — (3) Adjusted net earnings available to common shareholders of the Company $ 721 $ 664 Diluted weighted average common shares outstanding (millions) 300.9 308.8 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to net earnings available to common shareholders of the Company and diluted net earnings per common share for the periods ended as indicated. Free Cash Flow The following table reconciles, by reportable operating segments, free cash flow to cash flows from operating activities. The Company believes that free cash flow is the appropriate measure in assessing the Company's cash available for additional financing and investing activities. (i) Interest paid is included in cash flows from operating activities under the Financial Services segment. (ii) Capital investments are the sum of fixed asset purchases and intangible asset additions as presented in the Company's Condensed Consolidated Statements of Cash Flows, and prepayments transferred to fixed assets in the current period. Same-Store Sales Same-store sales are retail segment sales for stores in operation in both comparable periods, including relocated, converted, expanded, contracted or renovated stores. The Company believes this metric is useful in assessing sales trends excluding the effect of the opening and closure of stores. SOURCE Loblaw Companies Limited
Cision Canada
16-06-2025
- Business
- Cision Canada
DoorDash and PC Optimum™ Reward Canadians With New Loyalty Integration
Customers ordering delivery with DoorDash can now earn PC Optimum™ points on eligible orders of restaurant meals, weekly groceries, and more. TORONTO, June 16, 2025 /CNW/ - Ordering on DoorDash just got more rewarding! PC Optimum™, Canada's leading rewards program, and DoorDash, one of the world's leading local commerce platforms, are working together to provide Canadians with a seamless and delicious new way to earn PC Optimum™ points. Beginning today, PC Optimum™ members can earn five points for every dollar spent on eligible DoorDash orders delivered from their favourite restaurants and Loblaw-banner stores (including Real Canadian Superstore, No Frills, Loblaws, Shoppers Drug Mart, and more), offering Canadians a new way to earn. "PC Optimum™ has always been about rewarding Canadians for the things they buy most often," said Lauren Steinberg, Executive Vice President and Chief Digital Officer at Loblaw Companies Limited. "By partnering with DoorDash, we're extending the value of our program beyond our stores and into even more moments of everyday life. Whether it's groceries, everyday essentials, pharmacy, or now your favourite restaurant meals, we're making it easier to earn rewards wherever and however you choose to eat. This is another step in solidifying PC Optimum™ as the most rewarding and relevant loyalty program in the country." PC Optimum™ members can earn five points for every dollar spent on eligible DoorDash orders after linking their PC Optimum™ account to their DoorDash account. To celebrate the new way to earn, PC Optimum™ members will receive ten points for every dollar spent on eligible orders for the first three months, unlocking double the points-earning potential – in addition to 25,000 PC Optimum points™* for customers that are entirely new to DoorDash. "Connecting customers with the best of their neighbourhoods is our bread and butter, whether that's by ordering a delicious restaurant meal, a weekly supply of groceries, or a last-minute beauty haul," said Kyra Huntington, Head of Strategy and Operations at DoorDash Canada. "By enabling customers to earn PC Optimum™ points on many purchases through DoorDash, we're providing customers with an accelerated way for individuals to save on future shopping trips at Loblaw-banner stores. The more you order in, the more you can save the next time you go out." Ready to dig in? Here's the dish on how the partnership between DoorDash and PC Optimum™ works: Earn Points on Restaurants and More: Get five PC Optimum™ points for every dollar spent on eligible orders from your favourite restaurants and purchases at participating Loblaw-banner stores, including Real Canadian Superstore, No Frills, Shoppers Drug Mart, Maxi, Real Atlantic Superstore, and PC Express Rapid Delivery locations through DoorDash – plus an extra five points per dollar for the first three months. Limited Time New and Existing Customer Launch Bonus: From now through July 16, DoorDash and PC Optimum™ are sweetening the deal with two bonus offers. New DoorDash customers who create an account and link their PC Optimum™ account will unlock a whopping 25,000 points* after completing three eligible orders of $20 or more (15,000 points on your first order and 5,000 points on your second and third). Existing customers can link their PC Optimum™ account on DoorDash and get 5,000 points** on their first eligible order after linking and spending $20 before taxes and tips. Earning more points at more places is easy – simply visit DoorDash's app or website to link your PC Optimum™ account or sign up as a new member and start earning today. About DoorDash DoorDash (NASDAQ: DASH) is one of the world's leading local commerce platforms that helps businesses of all kinds grow and innovate, connects consumers to the best of their neighbourhoods, and gives people fast, flexible ways to earn. Since its founding in 2013, DoorDash has expanded to over 30 countries, using technology and logistics to shape the future of commerce. Through its Marketplace and its Commerce Platform, DoorDash is driving economic vitality in the regions it serves worldwide. About Loblaw Companies Limited Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,500 corporate franchised and Associate-owned locations, Loblaw, its franchisees, and Associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada's largest private sector employers. Loblaw's purpose – Live Life Well ® – puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,100 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Mart ® and Pharmaprix ® locations and close to 500 Loblaw locations; PC Financial ® services; affordable Joe Fresh ® fashion and family apparel; and four of Canada's top-consumer brands in Life Brand ®, Farmer's Market™, no name ® and President's Choice ®. *New Customer Offer. Earn 25,000 PC Optimum™ points on your first 3 orders on DoorDash when you sign up on DoorDash as a new user and link your PC Optimum account. Eligible only to new customers to DoorDash (never placed an order) or users who have not placed an order on DoorDash in the last 365 days. User must successfully link their PC Optimum account to DoorDash prior to placing their first qualifying order on DoorDash. Offer valid through 7/16/2025. Valid for 30 days from signup. Valid only on orders with a minimum subtotal of $20, excluding fees and taxes. Eligible customers will earn 15,000 PC Optimum™ points upon placing their first qualifying order on DoorDash. Earn an additional 5,000 PC Optimum™ points upon placing your second and third qualifying orders on DoorDash. A combined maximum of 25,000 PC Optimum™ points can be earned if a customer places first three qualifying orders on DoorDash. Points will be automatically earned at checkout. Not valid for the purchase of alcohol. You must be a PC Optimum™ member to earn points. To register as a PC Optimum™ member, visit Limit of one DoorDash account linked to any PC Optimum account at one time. See general program terms and conditions at **Existing Customer Welcome Offer. Earn 5,000 PC Optimum™ points when you link your PC Optimum™ account and place a qualifying order on DoorDash. Eligible only to existing users of DoorDash who have previously placed an order on DoorDash in the last 365 days and are not new users within their first month on DoorDash. Must link PC Optimum on DoorDash and place an order over $20 subtotal, excluding taxes and fees, to qualify. Not valid for the purchase of alcohol. Offer will be automatically applied at checkout for qualified users and transactions. Offer ends on 7/16/2025. You must be a PC Optimum™ member to earn points. To register as a PC Optimum™ member, visit Limit of one DoorDash account linked to any PC Optimum account at one time. See general program terms and conditions at .
Cision Canada
06-05-2025
- Business
- Cision Canada
George Weston Limited Reports Adjusted Diluted Net Earnings Per Common Share Growth of 12.2% in the First Quarter Français
TORONTO, May 6, 2025 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended March 22, 2025 (2). GWL's 2025 First Quarter Report has been filed on SEDAR+ and is available at and in the Investor Centre section of the Company's website at "Loblaw and Choice Properties delivered strong results in the first quarter of 2025, reflecting the stability of their businesses and commitment to operational excellence," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Our operating companies are offering customers and tenants exceptional value and service, driving their strategies and positioning George Weston for continued success." Loblaw Companies Limited ("Loblaw") continued its focus on providing Canadians with quality, value, service, and convenience, across its coast-to-coast network of stores and digital platforms during the quarter. Strong customer response to everyday value offerings, personalized PC Optimum™ loyalty offers, and impactful promotions drove continued sales momentum and market share gains, underpinned by positive unit sales and larger baskets in food retail. In drug retail, pharmacy and healthcare services performed well, reflecting continued strong growth in prescription volumes and specialty drugs. Front store sales were strong across beauty categories and reflected an extended cough, cold and flu season, partially offset by the exit from certain items in the electronics category. Delivering against its capital investment plans to open approximately 80 new stores and 100 new clinics in 2025, Loblaw brought hard discount banners to five new communities and opened four new pharmacies with expanded clinics in the quarter, and opened a second T&T Supermarket in downtown Toronto. Choice Properties Real Estate Investment Trust ("Choice Properties") delivered a solid first quarter of 2025. Occupancy remained high, and same-asset NOI growth and leasing spreads continued to be strong. Supported by a resilient tenant base and its industry leading balance sheet, Choice Properties continues to pursue growth opportunities, including the acquisition of $340 million of investment properties subsequent to quarter end. 2025 FIRST QUARTER HIGHLIGHTS Revenue was $14,285 million, an increase of $550 million, or 4.0%. Adjusted EBITDA (1) was $1,690 million, an increase of $67 million, or 4.1%. Net earnings available to common shareholders of the Company were $83 million ($0.62 per common share), a decrease of $153 million ($1.11 per common share). The decrease was primarily due to the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the increase of Choice Properties' unit price in the quarter, partially offset by an improvement in the consolidated underlying operating performance of the Company. Adjusted net earnings available to common shareholders of the Company (1) were $339 million, an increase of $27 million, or 8.7%. Adjusted diluted net earnings per common share (1) were $2.58, an increase of $0.28 per common share, or 12.2%. Repurchased for cancellation 0.8 million common shares at a cost of $181 million. GWL Corporate free cash flow (1) was $34 million. The quarterly common share dividend to be increased by $0.0738, or 9.0%, from $0.820 per common share to $0.8938 per common share. CONSOLIDATED RESULTS OF OPERATIONS The Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company's financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company's financial statements reflect the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate. The Company's results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations of Choice Properties' Trust Units on the basis that the Trust Units held by Unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company's consolidated balance sheet. The Company's financial results are negatively impacted when the Trust Unit price increases and positively impacted when the Trust Unit price declines. ($ millions except where otherwise indicated) For the periods ended as indicated 12 Weeks Ended Mar. 22, 2025 Mar. 23, 2024 $ Change % Change Revenue $ 14,285 $ 13,735 $ 550 4.0 % Operating income $ 1,077 $ 971 $ 106 10.9 % Adjusted EBITDA (1) from: Loblaw $ 1,589 $ 1,542 $ 47 3.0 % Choice Properties 246 241 5 2.1 % Effect of consolidation (138) (152) 14 9.2 % Publicly traded operating companies (i) $ 1,697 $ 1,631 $ 66 4.0 % GWL Corporate (7) (8) 1 12.5 % Adjusted EBITDA (1) $ 1,690 $ 1,623 $ 67 4.1 % Adjusted EBITDA margin (1) 11.8 % 11.8 % Net earnings attributable to shareholders of the Company $ 93 $ 246 $ (153) (62.2) % Loblaw (ii) $ 265 $ 243 $ 22 9.1 % Choice Properties (96) 142 (238) (167.6) % Effect of consolidation 3 (64) 67 104.7 % Publicly traded operating companies (i) $ 172 $ 321 $ (149) (46.4) % GWL Corporate (89) (85) (4) (4.7) % Net earnings available to common shareholders of the Company $ 83 $ 236 $ (153) (64.8) % Diluted net earnings per common share ($) $ 0.62 $ 1.73 $ (1.11) (64.2) % Loblaw (ii) $ 300 $ 284 $ 16 5.6 % Choice Properties 109 109 — — % Effect of consolidation (32) (48) 16 33.3 % Publicly traded operating companies (i) $ 377 $ 345 $ 32 9.3 % GWL Corporate (38) (33) (5) (15.2) % Adjusted net earnings available to common shareholders of the Company (1) $ 339 $ 312 $ 27 8.7 % Adjusted diluted net earnings per common share (1) ($) $ 2.58 $ 2.30 $ 0.28 12.2 % (i) Publicly traded operating companies is the contribution to the Company's financial performance from its controlling interest in Loblaw and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See "Results by Operating Segment" section of this News Release for further information. (ii) Contribution from Loblaw, net of non-controlling interests. Net earnings available to common shareholders of the Company in the first quarter of 2025 were $83 million ($0.62 per common share), compared to $236 million ($1.73 per common share) in the same period in 2024, a decrease of $153 million ($1.11 per common share). The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $180 million ($1.39 per common share) described below, partially offset by an improvement of $27 million ($0.28 per common share) in the consolidated underlying operating performance of the Company. The unfavourable year-over-year net impact of adjusting items totaling $180 million ($1.39 per common share) was primarily due to: the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $222 million ($1.69 per common share) as a result of the increase in Choice Properties' unit price in the first quarter of 2025; partially offset by, the favourable year-over-year impact of the fair value adjustment on Choice Properties' investment in real estate securities of Allied Properties Real Estate Investment Trust ("Allied") of $20 million ($0.15 per common share) as a result of the change in Allied's unit price; and the favourable year-over-year impact of the fair value adjustment on investment properties of $15 million ($0.11 per common share) driven by Choice Properties, net of the effect of consolidation. Adjusted net earnings available to common shareholders of the Company (1) in the first quarter of 2025 were $339 million, an increase of $27 million, or 8.7%, compared to the same period in 2024. The increase was driven by the favourable year-over-year impact of $32 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $5 million at GWL Corporate due to an increase in income tax expense as a result of GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB") program and an increase in adjusted net interest expense and other financing charges (1). Adjusted diluted net earnings per common share (1) were $2.58 in the first quarter of 2025, an increase of $0.28 per common share, or 12.2%, compared to the same period in 2024. The increase was due to the performance in adjusted net earnings available to common shareholders (1) as described above and the favourable impact of shares purchased for cancellation over the last 12 months ($0.08 per common share) pursuant to the Company's NCIB program. CONSOLIDATED OTHER BUSINESS MATTERS GWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities: NCIB – Purchased and Cancelled Shares In the first quarter of 2025, the Company purchased and cancelled 0.8 million common shares (2024 – 0.9 million common shares) for aggregate consideration of $181 million (2024 – $158 million) under its NCIB. As at March 22, 2025, the Company had 129.3 million common shares issued and outstanding, net of shares held in trusts (March 23, 2024 – 133.8 million common shares). In the first quarter of 2025, the Company entered into an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. Refer to note 11, "Share Capital" of the Company's first quarter 2025 unaudited interim period condensed consolidated financial statements for more information. Participation in Loblaw's NCIB The Company participates in Loblaw's NCIB in order to maintain its proportionate percentage ownership interest. In the first quarter of 2025, Loblaw repurchased 1.1 million common shares (2024 – 1.2 million common shares) from the Company for aggregate consideration of $211 million (2024 – $182 million). Subsequent Event GWL has a $350 million revolving committed credit facility provided by a syndicate of lenders with a maturity date of December 14, 2026. Subsequent to the first quarter of 2025, the maturity date of the credit facility was extended from December 14, 2026 to March 27, 2028 with all other terms and conditions remaining substantially the same. The following table provides key performance metrics for the Company by segment. Effect of consolidation includes the following items: LOBLAW OPERATING RESULTS Loblaw has two reportable operating segments, retail and financial services. Loblaw's retail segment consists primarily of food retail and drug retail. Loblaw provides Canadians with grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise and financial services. Revenue Loblaw revenue in the first quarter of 2025 was $14,135 million, an increase of $554 million, or 4.1%, compared to the same period in 2024, driven by an increase in retail sales and in financial services revenue. Retail sales were $13,837 million, an increase of $547 million, or 4.1%, compared to the same period in 2024. The increase was primarily driven by the following factors: food retail sales were $9,787 million (2024 – $9,409 million) and food retail same-store sales growth was 2.2% (2024 – 3.4%); the Consumer Price Index as measured by The Consumer Price Index for Food Purchased from Stores was 2.6% (2024 – 2.6%), which was in line with Loblaw's internal food inflation; and food retail traffic was flat and basket size increased. drug retail sales were $4,050 million (2024 – $3,881 million) and drug retail same-store sales growth was 3.8% (2024 – 4.0%); pharmacy and healthcare services same-store sales growth was 6.4% (2024 – 7.3%), led by specialty prescriptions. The number of prescriptions increased by 2.1% (2024 – 4.2%). On a same-store basis, the number of prescriptions increased by 2.3% (2024 – 4.0%) and the average prescription value increased by 4.4% (2024 – 2.0%); and front store same-store sales growth was 0.9% (2024 – 0.7%). Front store same-store growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the first quarter of 2025, 10 food and drug stores were opened and 4 food and drug stores were closed. Retail square footage was 72.3 million square feet, a net increase of 1.0 million square feet, or 1.4% compared to the same period in 2024. Financial services revenue was $373 million, an increase of $12 million, or 3.3%, compared to the same period in 2024, primarily driven by higher sales attributable to The Mobile Shop TM and higher interchange income. Operating Income Loblaw operating income in the first quarter of 2025 was $904 million, an increase of $45 million, or 5.2%, compared to the same period in 2024. Adjusted EBITDA (1) Loblaw adjusted EBITDA (1) in the first quarter of 2025 was $1,589 million, an increase of $47 million, or 3.0%, compared to the same period in 2024, driven by an increase in retail of $59 million, partially offset by a decrease in financial services of $12 million. Retail adjusted EBITDA (1) increased by $59 million, or 4.1%, compared to the same period in 2024, driven by an increase in retail gross profit of $156 million, partially offset by an increase in retail selling, general and administrative expenses ("SG&A") of $97 million. Retail gross profit percentage of 31.5% was stable, decreasing by 10 basis points compared to the same period in 2024, primarily driven by changes in sales mix. Retail SG&A as a percentage of sales was 20.6%, a favourable decrease of 10 basis points compared to the same period in 2024, primarily driven by operating leverage from higher sales, partially offset by incremental costs related to opening new stores and the automated distribution facility. Financial services adjusted EBITDA (1) decreased by $12 million, or 13.0%, compared to the same period in 2024, primarily driven by lapping of prior year marketing support funding in connection with the launch of PC Insiders World Elite Mastercard ®, and higher loyalty program costs. The decrease was partially offset by higher revenue described above, lower contractual charge-offs and the year-over-year favourable impact of the expected credit loss provision. Depreciation and Amortization Loblaw depreciation and amortization in the first quarter of 2025 was $705 million, an increase of $15 million compared to the same period in 2024, primarily driven by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets, partially offset by the impact of prior year accelerated depreciation as a result of network optimization. Depreciation and amortization in the first quarter of 2025 included $116 million (2024 – $114 million) of amortization of intangible assets related to the acquisitions of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") and Lifemark Health Group ("Lifemark"). Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada. Revenue Choice Properties revenue in the first quarter of 2025 was $347 million, a decrease of $2 million, or 0.6%, compared to the same period in 2024 and included revenue of $199 million (2024 – $197 million) generated from tenants within Loblaw. In the first quarter of 2024, revenue included $11 million from the sale of residential inventory. Excluding the impact of the sale of residential inventory, revenue increased by $9 million, or 2.7%, in the first quarter of 2025, compared to the same period in 2024, primarily driven by: higher rental rates primarily in the retail and industrial portfolios; and acquisitions, net of dispositions, and completed developments; partially offset by, lower lease surrender revenue. Net Interest Expense and Other Financing Charges Choice Properties net interest expense and other financing charges in the first quarter of 2025 were $372 million, an increase of $307 million compared to the same period in 2024. The increase was primarily driven by the unfavourable year-over-year change in the fair value adjustment on the Class B LP units ("Exchangeable Units") of $304 million, as a result of the increase in the unit price in the quarter. Net (Loss) Income Choice Properties recorded a net loss of $96 million in the first quarter of 2025, compared to net income of $142 million in the same period in 2024. The unfavourable change of $238 million was primarily driven by: higher net interest expense and other financing charges as described above; partially offset by, the favourable year-over-year change of the fair value adjustment of investment properties, including financial real estate assets and those held within equity accounted joint ventures, of $43 million; and the favourable year-over-year change of the fair value adjustment on investment in real estate securities of $21 million due to the change in Allied's unit price. Funds from Operations (1) Funds from Operations (1) in the first quarter of 2025 were $191 million, an increase of $4 million, or 2.1%, compared to the same period in 2024, primarily due to an increase in rental income and higher fee income. The increase was partially offset by higher net interest expense, lower lease surrender revenue, and income from the sale of residential inventory in the prior year. Choice Properties Other Business Matters Subsequent Event Subsequent to the end of the first quarter of 2025, Choice Properties acquired eight industrial outdoor storage sites located across Canada from a third party for a purchase price of $158 million excluding related costs. OUTLOOK (2) The Company's 2025 outlook remains unchanged and it continues to expect adjusted net earnings (1) to increase due to the results from its operating segments, and to use excess cash to repurchase shares. Loblaw Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. Loblaw's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, Loblaw's results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share (1) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, Loblaw continues to expect: its retail business to grow earnings faster than sales; adjusted net earnings per common share (1) growth in the high single-digits; to continue investing in its store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. Choice Properties Choice Properties is focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Its high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to its overall portfolio. Choice Properties will continue to advance its development program, with a focus on commercial developments, which provides the best opportunity to add high-quality real estate to its portfolio at a reasonable cost and drive net asset value appreciation over time. Choice Properties is confident that its business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to benefit its operations. In 2025, Choice Properties is targeting: stable occupancy across the portfolio, resulting in approximately 2% - 3% year-over-year growth in Same-Asset NOI, cash basis (3); annual FFO (1) per unit diluted (3) in a range of $1.05 to $1.06, reflecting approximately 2% - 3% year-over-year growth; and strong leverage metrics, targeting Adjusted Debt to EBITDAFV (3) below 7.5x. 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 IT systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "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 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 "Enterprise Risks and Risk Management" section of the Management's Discussion and Analysis in the Company's 2024 Annual Report and the Company's Annual Information Form for the year ended December 31, 2024. 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. Subsequent to the end of the first quarter of 2025, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows: Common Shares $0.8938 per share payable July 1, 2025, to shareholders of record June 15, 2025; Preferred Shares, Series I $0.3625 per share payable June 15, 2025, to shareholders of record May 31, 2025; Preferred Shares, Series III $0.3250 per share payable July 1, 2025, to shareholders of record June 15, 2025; Preferred Shares, Series IV $0.3250 per share payable July 1, 2025, to shareholders of record June 15, 2025; Preferred Shares, Series V $0.296875 per share payable July 1, 2025, to shareholders of record June 15, 2025. 2025 FIRST QUARTER REPORT The Company's 2024 Annual Report and 2025 First Quarter Report are available in the Investor Centre section of the Company's website at and have been filed on SEDAR+ and are available at INVESTOR RELATIONS Shareholders, security analysts and investment professionals should direct their requests to Roy MacDonald, Group Vice-President, Investor Relations, at the Company's Executive Office or by e-mail at [email protected]. Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR+. This News Release includes selected information on Loblaw, a public company with shares trading on the Toronto Stock Exchange ("TSX"), and selected information on Choice Properties, a public real estate investment trust with units trading on the TSX. For information regarding Loblaw or Choice Properties, readers should refer to the respective materials filed on SEDAR+ from time to time. These filings are also maintained on the respective companies' corporate websites at and ANNUAL MEETING The George Weston Limited Annual Meeting of Shareholders will be held on Tuesday, May 6, 2025 at 11:00 a.m. (ET) at The Royal Conservatory, TELUS Centre for Performance and Learning, Koerner Hall, 273 Bloor Street West, Toronto, Ontario, Canada. Shareholders who are not able to attend in person will be able to listen, participate and vote at the meeting in real time through a web-based platform at (meeting password: AGM2025) and via telephone. To access via audio-conference please dial (833) 987-8188. The audio playback will be available after the event at (647) 483-1416 or (877) 454-9859, password: 9298619#. For additional details on how to join, attend or vote at the Annual Meeting of Shareholders through the virtual platform or via telephone, please refer to the "LUMI Virtual User Guide" which is available at: Ce rapport est disponible en français. APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures and ratios as it believes these measures and ratios provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition. Further, certain non-GAAP measures and other financial measures of Loblaw and Choice Properties are included in this document. For more information on these measures, refer to the materials filed by Loblaw and Choice Properties, which are available on or at or respectively. Management uses these and other non-GAAP and other 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 adjusts for these 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. ADJUSTED EBITDA The Company believes adjusted EBITDA is useful in assessing and making decisions regarding the underlying operating performance of the Company's ongoing operations and in assessing the Company's ability to generate cash flows to fund its cash requirements, including its capital investment program. The following table reconciles adjusted EBITDA to operating income, which is reconciled to GAAP net earnings attributable to shareholders of the Company reported for the periods ended as indicated. (i) The following items impacted adjusted EBITDA in 2025 and 2024: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6 billion of definite life intangible assets, which are being amortized over their estimated useful lives. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, including $110 million in the first quarter of 2025, and approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. Fair value adjustment of investment in real estate securities Choice Properties received Allied Class B Units as part of the consideration for the Choice Properties disposition of six office assets to Allied in 2022. Choice Properties recognized these units as investments in real estate securities. The investment in real estate securities is exposed to market price fluctuations of Allied trust units. An increase (decrease) in the market price of Allied trust units results in income (a charge) to operating income. Gain on sale of non-operating property In the first quarter of 2025, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $14 million (2024 - nil). Sale of Wellwise In the fourth quarter of 2024, Loblaw entered into an agreement with a third party to sell all of the shares of its Wellwise by Shoppers TM (" Wellwise") business, including 42 Wellwise locations, for cash proceeds and recorded a net fair value write-down of $23 million in SG&A. The transaction closed in the first quarter of 2025 and Loblaw recorded a gain of $5 million in SG&A. Fair value adjustment on investment properties The Company measures investment properties at fair value. Under the fair value model, investment properties are initially measured at cost and subsequently measured at fair value. Fair value is determined based on available market evidence. If market evidence is not readily available in less active markets, the Company uses alternative valuation methods such as discounted cash flow projections or recent transaction prices. Gains and losses on fair value are recognized in operating income in the period in which they are incurred. Gains and losses from disposal of investment properties are determined by comparing the fair value of disposal proceeds and the carrying amount and are recognized in operating income. Fair value adjustment of derivatives Loblaw is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with Loblaw's commodity risk management policy, Loblaw 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 Loblaw'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 Loblaw'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. ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGES The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company. The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated. The following item impacted adjusted net interest expense and other financing charges in 2025 and 2024: Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by Unitholders other than the Company. These Trust Units are presented as a liability on the Company's consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting date based on the market price of Trust Units at the end of each period. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges. ADJUSTED INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATE The Company believes the adjusted effective tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business. The following table reconciles the effective tax rate applicable to adjusted earnings before taxes to the GAAP effective tax rate applicable to earnings before taxes as reported for the periods ended as indicated. (i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above. (ii) See the adjusted EBITDA table and the adjusted net interest expense and other financing charges table above for a complete list of items excluded from adjusted earnings before taxes. In addition to certain items described in the "Adjusted EBITDA" and "Adjusted Net Interest Expense and Other Financing Charges" sections above, the following item impacted adjusted income taxes and the adjusted effective tax rate in 2025 and 2024: Outside basis difference in certain Loblaw shares The Company recorded a deferred tax expense of $51 million in the first quarter of 2025 (2024 – $52 million) on temporary differences in respect of GWL's investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL's participation in Loblaw's NCIB. ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE The Company believes that adjusted net earnings available to common shareholders and adjusted diluted net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted net earnings attributable to shareholders of the Company to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company reported for the periods ended as indicated. ($ millions except where otherwise indicated) 12 Weeks Ended Mar. 22, 2025 Mar. 23, 2024 Net earnings attributable to shareholders of the Company $ 93 $ 246 Less: Prescribed dividends on preferred shares in share capital (10) (10) Net earnings available to common shareholders of the Company $ 83 $ 236 Less: Reduction in net earnings due to dilution at Loblaw (2) (2) Net earnings available to common shareholders for diluted earnings per share $ 81 $ 234 Net earnings attributable to shareholders of the Company $ 93 $ 246 Adjusting items (refer to the following table) 256 76 Adjusted net earnings attributable to shareholders of the Company $ 349 $ 322 Less: Prescribed dividends on preferred shares in share capital (10) (10) Adjusted net earnings available to common shareholders of the Company $ 339 $ 312 Less: Reduction in net earnings due to dilution at Loblaw (2) (2) Adjusted net earnings available to common shareholders for diluted earnings per share $ 337 $ 310 Diluted weighted average common shares outstanding (in millions) 130.4 134.9 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to GAAP net earnings available to common shareholders of the Company and diluted net earnings per common share as reported for the periods ended as indicated. (i) Contribution from Loblaw, net of non-controlling interests. (ii) Net of income taxes and non-controlling interests, as applicable. GWL CORPORATE FREE CASH FLOW GWL Corporate free cash flow is generated from dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw's NCIB, less corporate expenses, interest and income taxes paid. (i) Loblaw's fourth quarter of 2024 dividends were recognized in the first quarter of 2025. (ii) Included in the first quarter of 2025, was a payment of a provision of $247 million. Refer to note 14, "Contingent Liabilities" of the Company's first quarter 2025 unaudited interim period condensed consolidated financial statements for more information. (iii) GWL Corporate, financing, and other costs includes all other company level activities that are not allocated to the reportable operating segments such as net interest expense, corporate activities, administrative costs and changes in non-cash working capital. Also included are preferred share dividends. CHOICE PROPERTIES' FUNDS FROM OPERATIONS Choice Properties considers Funds from Operations to be a useful measure of operating performance as it adjusts for items included in net income that do not arise from operating activities or do not necessarily provide an accurate depiction of its performance. Funds from Operations is calculated in accordance with the Real Property Association of Canada's Funds from Operations & Adjusted Funds from Operations for International Financial Reporting Standards issued in January 2022. The following table reconciles Choice Properties' Funds from Operations to net income for the periods ended as indicated. SOURCE George Weston Limited
Associated Press
30-04-2025
- Business
- Associated Press
Loblaw Reports Revenue Growth of 4.1% and Adjusted Diluted Net Earnings Per Common Share(2) Growth of 9.3% in the First Quarter
BRAMPTON, ON, April 30, 2025 /CNW/ - Loblaw Companies Limited (TSX: L) ('Loblaw' or the 'Company') announced today its unaudited financial results for the first quarter ended March 22, 2025.(1) During the quarter, Loblaw continued its focus on providing Canadians with quality, value, service, and convenience, across its coast-to-coast network of stores and digital platforms. Strong customer response to everyday value offerings, personalized PC Optimum™ loyalty offers, and impactful promotions drove continued sales momentum and market share gains, underpinned by positive unit sales and larger baskets in Food Retail. In Drug Retail, pharmacy and healthcare services performed well, reflecting continued strong growth in prescription volumes and specialty drugs. Front store sales were strong across beauty categories and reflected an extended cough, cold and flu season, partially offset by the exit from certain items in the electronics category. Delivering against its capital investment plans to open approximately 80 new stores and 100 new clinics in 2025, the Company brought Hard Discount banners to five new communities and opened four new pharmacies with expanded clinics in the quarter, and opened a second T&T Supermarket in downtown Toronto. 'We will continue to support Canadian companies and brands, highlight Canadian-made products in our stores, and deliver value across our network,' said Per Bank, President and Chief Executive Officer, Loblaw Companies Limited. 'Our commitment to retail excellence is resonating with customers and allowed us to deliver consistent financial results.' 2025 FIRST QUARTER HIGHLIGHTS CONSOLIDATED AND SEGMENT RESULTS OF OPERATIONS The following table provides key performance metrics for the Company by segment. The following table provides a breakdown of the Company's total and same-store sales for the Retail segment. RETAIL SEGMENT In the first quarter of 2025, 10 food and drug stores were opened and 4 food and drug stores were closed. Retail square footage was 72.3 million square feet, a net increase of 1.0 million square feet, or 1.4% compared to the first quarter of 2024. FINANCIAL SERVICES SEGMENT OUTLOOK(3) Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. The Company's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, the Company's results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share(2) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, the Company continues to expect: ENVIRONMENTAL, SOCIAL AND GOVERNANCE ('ESG') With a network of more than 2,800 locations, and 220,000 colleagues and employees, Loblaw provides life's everyday essentials to Canadian families coast-to-coast. As such, Loblaw's prosperity is directly linked to the prosperity of the communities it serves. In April 2025, the Company released its 2024 Live Life Well® report, showcasing its progress relative to two key pillars that underpin the Company's commitment to Canada's prosperity – fighting climate change and advancing social equity: The 2024 Live Life Well® report builds on the Early Release of Priority 2024 ESG disclosures released in February 2025, and together, these two reports demonstrate the Company's commitment to providing timely and relevant information for stakeholders, and to its future alignment with the International Sustainability Standards Board ('ISSB'). NORMAL COURSE ISSUER BID PROGRAM ('NCIB') From time to time, the Company participates in an automatic share purchase plan ('ASPP') with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. 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 IT systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the 'Consolidated and Segment Results of Operations' and 'Outlook' sections 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 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 Management Discussion & Analysis ('MD&A') in the 2024 Annual Report, and the Company's Annual Information Form ('AIF') for the year ended December 28, 2024. 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. DECLARATION OF DIVIDENDS Subsequent to the end of the first quarter of 2025, the Board of Directors declared a quarterly dividend of $0.5643 per Common Shares, payable on July 1, 2025 to shareholders of record on June 15, 2025. EXCERPT OF NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures, as reconciled and fully described in Appendix 1 'Non-GAAP and Other Financial Measures' of this News Release. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards' or '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. The following table provides a summary of the differences between the Company's consolidated GAAP and Non-GAAP and other financial measures, which are reconciled and fully described in Appendix 1. The following table provides a summary of the Company's adjusting items which are reconciled and fully described in Appendix 1. CORPORATE PROFILE 2024 Annual Report and 2025 First Quarter Report to Shareholders The Company's 2024 Annual Report and 2025 First Quarter Report to Shareholders are available in the 'Investors' section of the Company's website at and on Investor Relations Additional financial information has been filed electronically with various securities regulators in Canada through 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 ('PC 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 Conference Call and Webcast Loblaw Companies Limited will host a conference call as well as an audio webcast on April 30, 2025 at 10:00 a.m. (ET). To access via tele-conference, please dial (416) 945-7677 or (888) 699-1199. The playback will be made available approximately two hours after the event at (289) 819-1450 or (888) 660-6345, access code: 30196#. To access via audio webcast, please go to the 'Investor' section of Pre-registration will be available. Full details about the conference call and webcast are available on the Loblaw Companies Limited website at Annual Meeting of Shareholders The 2025 Annual Meeting of Shareholders of Loblaw Companies Limited will be held on Tuesday, May 6, 2025 at 11:00 a.m. (EDT) at The Royal Conservatory, TELUS Centre for Performance and Learning, Koerner Hall, 273 Bloor Street West, Toronto, Ontario, Canada and virtually via a live webcast. Shareholders will also be able to listen, participate and vote at the meeting in real time through a live webcast online at (meeting password: AGM2025). See 'How do I attend and participate in the Meeting?' in the Management Proxy dated March 25, 2025, which can be viewed online at or under Loblaw's SEDAR+ profile at for detailed instructions on how to attend and vote at the meeting. Please refer to the 'Events and Presentations' or 'Shareholders Services' page at for additional details on the virtual meeting. APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses the following non-GAAP and other financial measures and ratios: 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, and same-store sales. The Company believes these non-GAAP and other financial measures and ratios 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 and other 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 adjusts for these 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 sales 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. 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. In addition to the items described in the Retail segment adjusted gross profit section above, when applicable, adjusted EBITDA was impacted by the following: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark 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. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, including $110 million in the first quarter of 2025, and approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. 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. Sale of Wellwise In the fourth quarter of 2024, the Company entered into an agreement with a third party to sell all of the shares of its Wellwise by Shoppers™ ('Wellwise') business, including 42 Wellwise locations, for cash proceeds and recorded a net fair value write-down of $23 million in the Retail segment in SG&A. The transaction closed in the first quarter of 2025 and the Company recorded a gain of $5 million in the Retail segment in SG&A. Gain on sale of non-operating property In the first quarter of 2025, the Company recorded a gain related to the sale of a non-operating property to a third party of $14 million (2024 – nil). Adjusted Net Interest Expense and Other Financing Charges The following table reconciles adjusted net interest expense and other financing charges to net interest 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 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. 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 expense and other financing charges. 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. The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to net earnings available to common shareholders of the Company and diluted net earnings per common share for the periods ended as indicated. Free Cash Flow The following table reconciles, by reportable operating segments, free cash flow to cash flows from operating activities. The Company believes that free cash flow is the appropriate measure in assessing the Company's cash available for additional financing and investing activities. Same-Store Sales Same-store sales are retail segment sales for stores in operation in both comparable periods, including relocated, converted, expanded, contracted or renovated stores. The Company believes this metric is useful in assessing sales trends excluding the effect of the opening and closure of stores. SOURCE Loblaw Companies Limited
