George Weston (WN) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and FY2024 results, driven by Loblaw's retail excellence and Choice Properties' stable cash flows.

• Loblaw saw increased customer engagement, higher traffic, and market share gains in food retail; drug retail and pharmacy services also performed well.

• Choice Properties completed $427M in real estate transactions and delivered $299M in development projects, adding 1.1M sq. ft. of new space.

• Repurchased 5.0M common shares in 2024 for $990M; continued focus on capital returns.

Financial highlights

• Q4 revenue: $15,097M, up 2.7% year-over-year; FY2024 revenue: $61,608M, up 2.5%.

• Q4 adjusted EBITDA: $1,814M, up 7.1%; FY2024 adjusted EBITDA: $7,401M, up 6.4%.

• Q4 net earnings available to common shareholders: $664M ($5.05/share), up $702M year-over-year due to favorable fair value adjustments.

• FY2024 net earnings available to common shareholders: $1,315M ($9.80/share), down 12.1% year-over-year; adjusted net earnings up 8.9%.

• Q4 adjusted net earnings: $415M, up 21.3%; adjusted diluted EPS: $3.15, up 25.5%. FY2024 adjusted diluted EPS: $11.93, up 13.2%.

• GWL Corporate free cash flow: $258M in Q4; $1,103M for FY2024.

Outlook and guidance

• Expects adjusted net earnings to increase in 2025, driven by operating segment results and share repurchases.

• Loblaw anticipates high single-digit adjusted EPS growth (excluding 53rd week), with retail earnings growing faster than sales.

• Loblaw to invest $1.9B net in capital expenditures and continue significant share repurchases.

• Choice Properties targets 2–3% year-over-year growth in Same-Asset NOI and FFO per unit, with leverage below 7.5x.