George Weston (WN) Q3 2024 earnings summary

Executive summary

• Revenue rose 1.5% year-over-year to $18,685 million, driven by solid performance at Loblaw and Choice Properties.

• Adjusted EBITDA increased 6.9% to $2,158 million, reflecting operational strength in both segments.

• Net earnings available to common shareholders fell sharply to $15 million, mainly due to a $787 million fair value loss on the Trust Unit liability from rising Choice Properties' unit price.

• Adjusted net earnings available to common shareholders grew 2.1% to $476 million, with adjusted diluted EPS up 6.3% to $3.57.

Financial highlights

• Revenue: $18,685 million, up $278 million or 1.5% year-over-year.

• Adjusted EBITDA: $2,158 million, up $139 million or 6.9% year-over-year.

• Net earnings available to common shareholders: $15 million, down $595 million or 97.5% year-over-year, due to non-cash fair value adjustments.

• Adjusted net earnings: $476 million, up $10 million or 2.1% year-over-year.

• Adjusted diluted EPS: $3.57, up $0.21 or 6.3% year-over-year.

• GWL Corporate free cash flow: $422 million.

Outlook and guidance

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

• Loblaw expects retail earnings to grow faster than sales and raised full-year adjusted EPS growth guidance to low double-digits.

• Loblaw plans $1.9 billion net capital expenditures for 2024.

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