George Weston (WN) Q2 2024 earnings summary

Executive summary

• Revenue rose 1.5% year-over-year to $14,091 million, driven by strong operating company performance.

• Adjusted EBITDA increased 4.2% to $1,806 million, reflecting operational improvements.

• Net earnings available to common shareholders fell 19.7% to $400 million due to a $253 million charge from the bread price-fixing class action settlement.

• Adjusted net earnings grew 4.5% to $394 million, and adjusted diluted EPS rose 9.3% to $2.93.

• 1.8 million shares were repurchased for $339 million; GWL Corporate free cash flow was $282 million.

Financial highlights

• Loblaw revenue increased 1.5% to $13,947 million, with retail and financial services both contributing.

• Loblaw adjusted EBITDA rose 4.5% to $1,711 million; retail gross profit margin improved by 90 bps to 32.0%.

• Choice Properties revenue grew 1.8% to $336 million; net income was $514 million, down $22 million year-over-year.

• Funds from Operations for Choice Properties were $185 million, up $1 million year-over-year.

• GWL Corporate free cash flow was $282 million, down from $365 million in the prior year.

Outlook and guidance

• Adjusted net earnings are expected to increase in 2024, with excess cash used for share repurchases.

• Loblaw expects high single-digit growth in adjusted net earnings per share and continued investment in its network.

• Choice Properties targets 2.5%-3.0% growth in Same-Asset NOI and FFO per unit diluted of $1.02-$1.03.