TORONTO, July 30, 2021
/CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company")
today announced its consolidated unaudited results for the 12 weeks
ended June 19, 2021.
GWL's 2021 Second Quarter Report has been filed on SEDAR
and is available at sedar.com and in the Investor Centre section of
the Company's website at weston.ca.
"We are pleased with the performance of our businesses as they
lapped the most difficult quarter of the pandemic, with each
delivering operational and financial improvements." said
Galen G. Weston, Chairman and Chief
Executive Officer, George Weston Limited. "As economies continue to
reopen in the second half of the year, our businesses are
well-positioned to execute on their plans."
Loblaw Companies Limited ("Loblaw") delivered strong financial
performance in the second quarter of 2021. Revenue growth continued
despite lapping the unprecedented demand in the previous year from
stockpiling by consumers at the start of COVID-19. Consolidated
gross margin improved significantly, reflecting a heightened focus
on the core retail business, including promotional effectiveness
and cost controls. Loblaw maintained its focus on delivering value
and quality to its customers in a safe shopping environment and is
well-positioned to meet the evolving needs of customers as pandemic
restrictions lift and economies re-open.
Choice Properties Real Estate Investment Trust ("Choice
Properties") generated solid results in the second quarter of 2021,
collecting 98% of contractual rents despite continued regional
lockdowns across Canada. Choice
Properties continued to advance its development initiatives, drive
meaningful net asset value appreciation and improve its balance
sheet. Net asset value per unit increased by 3.6% driven primarily
by gains from the industrial portfolio, 149,000 square feet of new
gross leasable area was transferred to income-producing assets, and
Choice Properties lowered its leverage ratio through the early
repayment of $200 million of
debentures.
Weston Foods delivered much improved financial results in the
second quarter of 2021 compared to the same quarter in 2020. Sales
grew in foodservice and retail as government-mandated lockdowns
were lifted in many regions of Canada and the
United States. In addition to the increase in sales, lower
pandemic-related costs and continued productivity improvements
contributed to the year-over-year earnings growth. In the second
quarter, Weston Foods was faced with higher-than-expected input,
labour and distribution costs. The higher costs, together with
labour availability challenges, negatively impacted sales and
earnings. These factors were primarily the result of a surge in
global demand for consumer goods as economies began to reopen
following the lifting of many lockdown restrictions. Weston
Foods has taken steps, including pricing, to help mitigate the
impact of cost inflation, and expects the labour availability
challenges will ease over time. The business is
well-positioned to meet the increasing demand from its customers
and continue to offer superior products and services.
2021 SECOND QUARTER HIGHLIGHTS
George Weston Limited's net earnings available to common
shareholders of the Company were $108 million ($0.70 per common share) an increase of
$363 million ($2.36 per common share) when compared to the same
period in 2020. The increase was due to the favourable
year-over-year net impact of adjusting items totaling
$230 million ($1.49 per common
share), which was primarily due to the favourable year-over-year
impact of the fair value adjustment on investment properties of
$203 million ($1.33 per common
share) at Choice Properties, net of consolidation adjustments in
Other and Intersegment, and an improvement of $133 million
($0.87 per common share) in the
Company's consolidated underlying operating performance.
Adjusted net earnings available to common shareholders of the
Company(1) in the second quarter of 2021 were
$272 million ($1.78 per common share). In comparison to the
same period in 2020, this represented an increase of $133 million ($0.87
per common share), or 95.7%, primarily due to the improvement in
the underlying operating performance of Loblaw, Choice Properties
and Weston Foods. The increase in adjusted diluted net earnings per
common share(1) of $0.87,
or 95.6%, was due to the performance in adjusted net earnings
available to common shareholders(1) and the favourable
impact of share repurchases.
Quarterly common share dividend to be increased by $0.05, or 9.1%, from $0.550 per common share to $0.600 per common share.
CONSOLIDATED RESULTS OF OPERATIONS
The Company's results reflect the impact of COVID-19 and the
year-over-year impact of the fair value adjustment of the Trust
Unit liability as a result of the significant changes in Choice
Properties' unit price, recorded in net interest expense and other
financing charges. The Company's results are impacted by market
price fluctuations of Choice Properties' Trust Units on the basis
that the Trust Units held by unitholders, other than the Company,
are redeemable for cash at the option of the holder and are
presented as a liability on the Company's consolidated balance
sheet. The Company's financial results are negatively impacted when
the Trust Unit price rises and positively impacted when the Trust
Unit price declines.
(unaudited)
|
|
|
|
|
|
|
($ millions except
where otherwise
|
|
|
|
|
|
|
|
|
indicated)
|
12 Weeks
Ended
|
|
|
24 Weeks
Ended
|
|
|
For the periods ended
as indicated
|
Jun. 19,
2021
|
Jun. 13,
2020(3)
|
$ Change
|
% Change
|
Jun. 19,
2021
|
Jun. 13,
2020(3)
|
$ Change
|
% Change
|
Revenue
|
$
|
12,931
|
$
|
12,357
|
$
|
574
|
4.6%
|
$
|
25,283
|
$
|
24,690
|
$
|
593
|
2.4%
|
Operating
income
|
$
|
1,056
|
$
|
401
|
$
|
655
|
163.3%
|
$
|
1,886
|
$
|
999
|
$
|
887
|
88.8%
|
Adjusted
EBITDA(1)
|
$
|
1,489
|
$
|
1,079
|
$
|
410
|
38.0%
|
$
|
2,824
|
$
|
2,379
|
$
|
445
|
18.7%
|
Adjusted EBITDA
margin(1)
|
|
11.5%
|
|
8.7%
|
|
|
|
|
11.2%
|
|
9.6%
|
|
|
|
Net earnings
(loss) attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
$
|
118
|
$
|
(245)
|
$
|
363
|
148.2%
|
$
|
66
|
$
|
347
|
$
|
(281)
|
(81.0)%
|
Net earnings
(loss) available to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
$
|
108
|
$
|
(255)
|
$
|
363
|
142.4%
|
$
|
46
|
$
|
327
|
$
|
(281)
|
(85.9)%
|
Adjusted net earnings
available
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
shareholders
of the Company(1)
|
$
|
272
|
$
|
139
|
$
|
133
|
95.7%
|
$
|
515
|
$
|
378
|
$
|
137
|
36.2%
|
Diluted net
earnings (loss) per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common share
($)
|
$
|
0.70
|
$
|
(1.66)
|
$
|
2.36
|
142.2%
|
$
|
0.28
|
$
|
2.12
|
$
|
(1.84)
|
(86.8)%
|
Adjusted diluted net
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per
common share(1) ($)
|
$
|
1.78
|
$
|
0.91
|
$
|
0.87
|
95.6%
|
$
|
3.37
|
$
|
2.45
|
$
|
0.92
|
37.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2021, the Company recorded net earnings
available to common shareholders of the Company of
$108 million ($0.70 per common
share), an increase of $363 million
($2.36 per common share) compared to
the same period in 2020. The increase was due to the favourable
year-over-year net impact of adjusting items totaling
$230 million ($1.49 per common
share), and an improvement of $133 million ($0.87 per common share) in the consolidated
underlying operating performance of the Company described
below.
- The favourable year-over-year net impact of adjusting items
totaling $230 million ($1.49 per common share) was due to:
-
- the favourable year-over-year impact of the fair value
adjustment on investment properties of $203
million ($1.33 per common
share) primarily driven by Choice Properties, net of consolidation
adjustments in Other and Intersegment; and
- the favourable year-over-year impact of the fair value
adjustment of the Trust Unit liability of $69 million ($0.44
per common share) as a result of the increase in Choice Properties'
unit price in the second quarter of 2021;
partially
offset by,
-
- the unfavourable year-over-year impact of the fair value
adjustment of the forward sale agreement of Loblaw common shares of
$52 million ($0.34 per common share).
- The improvement in the Company's consolidated underlying
operating performance of $133 million
($0.87 per common share) was due
to:
-
- the favourable underlying operating performance of Loblaw,
Choice Properties and Weston Foods;
partially
offset by,
-
- an increase in depreciation and amortization.
- Diluted net earnings per common share also included the
favourable impact of shares purchased for cancellation in the
fourth quarter of 2020 and in the first and second quarters of
2021.
Adjusted net earnings available to common shareholders of the
Company(1) were $272 million, an increase of
$133 million, or 95.7%, compared to
the same period in 2020 due to the improvement in the Company's
consolidated underlying operating performance described above.
Adjusted diluted net earnings per common share(1) was
$1.78 per common share in the second
quarter of 2021, an increase of $0.87
per common share, or 95.6%, compared to the same period in 2020.
The increase was due to the performance in adjusted net earnings
available to common shareholders(1) and the favourable
impact of share repurchases.
CONSOLIDATED OTHER BUSINESS MATTERS
COVID-19 RELATED COSTS The
Company incurred COVID-19 related costs of approximately
$75 million and $128 million in
the second quarter of 2021 and year-to-date, respectively (2020 -
$315 million and $347 million), primarily related to safety and
security measures to protect colleagues, customers, tenants and
other stakeholders. The estimated COVID-19 related costs incurred
by each of the Company's reportable operating segments were
as follows:
(unaudited)
|
12 Weeks
Ended
|
24 Weeks
Ended
|
($
millions)
|
Jun. 19,
2021
|
Jun. 13,
2020
|
Jun. 19,
2021
|
Jun. 13,
2020
|
Loblaw(i)
|
$
|
70
|
$
|
282
|
$
|
118
|
$
|
314
|
Choice
Properties(ii)
|
|
2
|
|
15
|
|
3
|
|
15
|
Weston
Foods
|
|
3
|
|
18
|
|
7
|
|
18
|
Consolidated
|
$
|
75
|
$
|
315
|
$
|
128
|
$
|
347
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Loblaw's COVID-19
related costs included $25 million and $180 million related to
one-time bonuses and benefits for store and distribution centre
colleagues in the second quarters of 2021 and 2020, respectively.
|
(ii)
|
Choice Properties
recorded a provision of $2 million (2020 – $15 million) and $3
million (2020 – $15 million) in the second quarter of 2021
and year-to-date, respectively, for certain past
due amounts, reflecting increased collectability risk and
negotiated rent abatements.
|
Refer to "Outlook" of this News Release for more
information.
GWL
CORPORATE(4) ACTIVITIES The
Company completed the following financing activities during the
second quarter of 2021. The cash impacts of these activities are
set out below:
(unaudited)
|
12 Weeks
Ended
|
24 Weeks
Ended
|
($
millions)
|
Jun. 19,
2021
|
Jun. 13,
2020
|
Jun. 19,
2021
|
Jun. 13,
2020
|
Net Debt Associated
with Equity Forward Sale
|
|
|
|
|
|
|
|
|
Agreement
|
$
|
(53)
|
$
|
—
|
$
|
(53)
|
$
|
—
|
GWL's Normal Course
Issuer Bid ("NCIB") - Purchased
|
|
|
|
|
|
|
|
|
and
cancelled(i)(ii)
|
|
(141)
|
|
—
|
|
(166)
|
|
—
|
GWL's Participation
in Loblaw's NCIB(iii)
|
|
172
|
|
—
|
|
338
|
|
92
|
Net Cash Flow (Used)
From Above Activities
|
$
|
(22)
|
$
|
—
|
$
|
119
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
$30 million of cash
consideration related to common shares repurchased under the NCIB
for cancellation in the first quarter of 2021 was paid in the
second quarter of 2021.
|
(ii)
|
$26 million of cash
consideration related to common shares repurchased under the NCIB
for cancellation in the second quarter of 2021 was paid in the
third quarter of 2021.
|
(iii)
|
$15 million of cash
consideration received related to Loblaw common shares sold during
the first quarter of 2021 was paid in the second quarter of
2021.
|
NET DEBT ASSOCIATED WITH EQUITY FORWARD SALE
AGREEMENT In the second quarter of 2021, the Company
partially settled the net debt associated with the equity forward
sale agreement by paying approximately $53
million net of the $43 million gain on the settlement
of 0.75 million of the 9.6 million shares under the equity forward
sale agreement to redeem 7.8% of the Series A Debentures and Series
B Debentures, including accrued interest. As a result of the
transaction, the Company redeemed $36
million of the Series A Debentures and $60 million of the Series B Debentures.
Subsequent to quarter end, the Company paid an additional
$363 million to further reduce the
net debt associated with the equity forward sale agreement. In
aggregate, the Company has paid $416
million to settle approximately 57% of the net debt,
representing 5.48 million of the 9.6 million Loblaw common shares.
In 2021, the Company expects to eliminate the remaining balance
using cash. Upon completion, the full 9.6 million shares will be
included in determining the Company's beneficial and voting
interest in Loblaw.
Refer to Section 3.3, "Components of Total Debt" of the
Company's 2021 Second Quarter MD&A for more information.
GWL'S NCIB - PURCHASED AND CANCELLED
SHARES In the second quarter of 2021, the
Company purchased and cancelled 1.2 million shares under its Normal
Course Issuer Bid program. At the end of the quarter, the Company
had 150,600,742 shares outstanding.
In the second quarter of 2021, 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. Subsequent to quarter end, the Company
purchased and cancelled approximately $130
million of its common shares under its ASPP.
Refer to Section 3.6, "Share Capital" of the Company's 2021
Second Quarter MD&A for more information.
GWL'S PARTICIPATION IN LOBLAW'S
NCIB Commencing in the first quarter of
2020, the Company began participating in Loblaw's NCIB program
in order to maintain its proportionate percentage ownership.
During the second quarter of 2021, GWL received proceeds of
$172 million from the sale of Loblaw shares.
REPORTABLE OPERATING SEGMENTS
The Company operates through its three reportable operating
segments: Loblaw, Choice Properties and Weston Foods. Other and
Intersegment includes eliminations, intersegment adjustments
related to the consolidation and cash and short-term investments
held by the Company. All other company level activities that are
not allocated to the reportable operating segments, such as
interest expense, corporate activities and administrative costs are
included in Other and Intersegment.
Loblaw has two reportable operating segments, retail and
financial services. Loblaw's retail segment consists primarily of
food retail and drug retail. Loblaw provides Canadians with
grocery, pharmacy, health and beauty, apparel, general merchandise
and financial services.
Choice Properties owns, manages and develops a high-quality
portfolio of commercial retail, industrial, office and residential
properties across Canada.
Weston Foods is a North American bakery making bread,
rolls, cupcakes, donuts, cookies, cakes, pies, cones and wafers,
artisan baked goods and more.
Loblaw Operating Results
(unaudited)
|
|
($ millions except
where otherwise
|
|
|
indicated)
|
12 Weeks
Ended
|
|
|
24 Weeks
Ended
|
|
|
For the periods ended
as indicated
|
Jun. 19,
2021
|
Jun. 13,
2020(3)
|
$ Change
|
% Change
|
Jun. 19,
2021
|
Jun. 13,
2020(3)
|
$ Change
|
% Change
|
Revenue
|
$
|
12,491
|
$
|
11,957
|
$
|
534
|
4.5%
|
$
|
24,363
|
$
|
23,757
|
$
|
606
|
2.6%
|
Operating
income
|
$
|
750
|
$
|
402
|
$
|
348
|
86.6%
|
$
|
1,365
|
$
|
941
|
$
|
424
|
45.1%
|
Adjusted
EBITDA(1)
|
$
|
1,369
|
$
|
1,006
|
$
|
363
|
36.1%
|
$
|
2,585
|
$
|
2,169
|
$
|
416
|
19.2%
|
Adjusted EBITDA
margin(1)
|
|
11.0%
|
|
8.4%
|
|
|
|
|
10.6%
|
|
9.1%
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(i)
|
$
|
614
|
$
|
598
|
$
|
16
|
2.7%
|
$
|
1,224
|
$
|
1,192
|
$
|
32
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Depreciation and
amortization in the second quarter of 2021 includes
$117 million (2020 – $118 million) of amortization of
intangible assets acquired with Shoppers Drug Mart Corporation
("Shoppers Drug Mart").
|
Revenue Loblaw revenue in the second quarter of
2021 was $12,491 million, an
increase of $534 million, or 4.5%, compared to the same
period in 2020, driven by an increase in retail sales and an
improvement in financial services revenue.
Retail sales increased by $514 million, or 4.4%, compared
to the same period in 2020 and included food retail sales of
$8,878 million (2020 –
$8,747 million) and drug retail
sales of $3,404 million (2020 –
$3,021 million). The increase
was primarily driven by the following factors:
- food retail same-store sales declined by 0.1% for the quarter.
The decline was mainly driven by lapping the strong surge in sales
in the second quarter of 2020. The two year food retail sales
Compound Average Growth Rate ("CAGR")(5) was 6.3%. Food
retail basket size decreased and traffic increased in the quarter,
as compared to the second quarter of 2020;
- Loblaw's food retail average article price was higher by 1.4%
(2020 – 4.6%), which reflected the year-over-year growth in food
retail revenue over the average number of articles sold in Loblaw's
stores in the quarter; and
- drug retail same-store sales grew by 9.6% for the quarter.
Pharmacy same-store sales growth benefited from the lapping of
government mandated 30-day supply restrictions in the second
quarter of the prior year. Pharmacy same-store sales growth was
17.2% and front store same-store sales increased by 3.6%. The two
year drug retail sales CAGR(5) was 5.7%.
In the last 12 months, 20 food and drug stores were opened and
nine food and drug stores were closed, resulting in a net
increase in retail square footage of 0.5 million square feet, or
0.7%.
Financial services revenue in the second quarter of 2021
increased by $39 million compared to
the same period in 2020. The increase was primarily driven by
higher sales attributable to The Mobile
Shop due to the temporary partial shutdown of The
Mobile Shop kiosks in the second quarter of 2020 and
higher interchange income from an increase in customer spending.
This was partially offset by lower interest income attributable to
lower average credit card receivables.
Operating income Loblaw operating income in the
second quarter of 2021 was $750 million, an increase of
$348 million, or 86.6%, compared to the same period in 2020.
The increase included an improvement in underlying operating
performance of $346 million and the favourable year-over-year
net impact of adjusting items totaling $2 million, as
described below:
- the improvement in underlying operating performance of
$346 million was primarily due to the
improvement in underlying operating performance of retail driven by
an increase in retail gross profit and a decrease in SG&A which
was partially offset by an increase in depreciation and
amortization, and the improvement in the underlying operating
performance of financial services;
- the favourable year-over-year net impact of adjusting items
totaling $2 million was primarily due
to the favourable year-over-year impact of restructuring and other
related costs of $1 million.
Adjusted EBITDA(1) Loblaw adjusted
EBITDA(1) in the second quarter of 2021 was
$1,369 million, an increase of
$363 million, or 36.1%, compared to the same period in 2020.
The increase was primarily due to an improvement in retail of
$347 million and an increase in
financial services of $16
million.
Retail adjusted EBITDA(1) in the second
quarter of 2021 increased by $347 million driven by an
increase in retail gross profit and a favourable decrease in
SG&A.
- Retail gross profit percentage of 30.9% increased by 130 basis
points compared to the same period in 2020, from favourable changes
in sales mix in both food retail and drug retail and underlying
improvements in business initiatives.
- Retail SG&A as a percentage of sales was 20.2%, a decrease
of 120 basis points compared to the same period of 2020, primarily
due to lower COVID-19 related expenses and improvements in
e-commerce labour costs.
Financial services adjusted EBITDA(1) increased by
$16 million compared to the same period in 2020, primarily
driven by higher revenue as described above, the reduction in the
expected credit loss provision in the current quarter, lower
contractual charge-off and lower funding costs. This was partially
offset by higher loyalty program costs and operating costs, and
higher customer acquisition costs.
Depreciation and Amortization Loblaw depreciation
and amortization in the second quarter of 2021 was
$614 million, an increase of $16 million compared to the
same period in 2020, primarily driven by an increase in information
technology ("IT") and leased assets and an increase in depreciation
and amortization in financial services due to the launch
of PC Money Account. Included in depreciation and
amortization is the amortization of intangible assets acquired with
Shoppers Drug Mart of $117 million (2020 – $118 million).
Consolidation of Franchises Loblaw has more than
500 franchise food retail stores in its network. Non-controlling
interests at Loblaw represent the franchise's earnings in food.
Loblaw's net earnings attributable to non-controlling interests was
$56 million in the second quarter of
2021. When compared to the second quarter of 2020, this represented
an increase of $66 million or 660%. The increase in
non-controlling interests at Loblaw was primarily driven by higher
franchise earnings in comparison to the same period in 2020.
Choice Properties Operating Results
(unaudited)
|
|
|
|
|
|
|
|
($ millions except
where otherwise
|
|
|
|
|
|
|
|
indicated)
|
|
12 Weeks
Ended
|
|
|
24 Weeks
Ended
|
|
|
For the periods ended
as indicated
|
|
Jun. 19,
2021
|
Jun. 13,
2020
|
$ Change
|
% Change
|
Jun. 19,
2021
|
Jun. 13,
2020
|
$ Change
|
% Change
|
Revenue
|
|
$
|
324
|
$
|
315
|
$
|
9
|
2.9%
|
$
|
651
|
$
|
640
|
$
|
11
|
1.7%
|
Net interest expense
(income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges(i)
|
|
$
|
418
|
$
|
67
|
$
|
351
|
523.9%
|
$
|
765
|
$
|
(189)
|
$
|
954
|
504.8%
|
Net income
(loss)
|
|
$
|
85
|
$
|
(96)
|
$
|
181
|
188.5%
|
$
|
23
|
$
|
237
|
$
|
(214)
|
(90.3%)
|
Funds from
Operations(1)(ii)
|
|
$
|
172
|
$
|
141
|
$
|
31
|
22.0%
|
$
|
342
|
$
|
311
|
$
|
31
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Net interest expense
(income) and other financing charges includes a fair value
adjustment on Exchangeable Units.
|
(ii)
|
Funds from operations
is calculated in accordance with the Real Property Association of
Canada's White Paper on Funds from Operations & Adjusted
Funds from Operations for IFRS issued in February 2019.
|
Revenue Revenue in the second quarter of
2021 was $324 million, an increase of
$9 million, or 2.9%, compared to the same period in 2020, and
included $181 million (2020 –
$182 million) generated from tenants
from Loblaw retail.
The increase in revenue was primarily driven by:
- the net contribution from acquisitions and development
transfers completed in 2020 and 2021; and
- an increase in lease surrender revenue;
partially offset by,
- declines due to foregone revenue from dispositions in
2020;
- vacancies in select retail and office assets; and
- a reduction in transient parking revenue in the office
portfolio due to the impact of the pandemic on city centres.
Net Interest Expense and Other Financing Charges
Net interest expense and other financing charges in the second
quarter of 2021 were $418 million compared to $67 million
in the same period in 2020. The increase of $351 million was
primarily driven by the unfavourable year-over-year impact of the
fair value adjustment of Exchangeable Units of $359 million,
partially offset by the impact of early redemption premiums for two
senior unsecured debentures repaid in the second quarter of 2020,
the general reduction in indebtedness from a lower balance on the
credit facility and a decline in interest costs due to refinancing
over the past year at lower interest rates.
Net Income (Loss) Net income in the second quarter
of 2021 was $85 million, compared to a net loss of
$96 million in the same period in 2020. The increase of
$181 million was primarily driven by:
- the favourable change in the adjustment to fair value of
investment properties, including those held within equity accounted
joint ventures;
- a decline in expected credit loss provisions;
- a non-recurring allowance for expected credit losses on a
specific mortgage receivable incurred in the second quarter of
2020; and
- an increase in rental revenue as described above;
partially offset by,
- the unfavourable impact of higher net interest expense and
other financing charges described above.
Funds from Operations(1) Funds from
Operations(1) in the second quarter of 2021 was
$172 million, an increase of $31 million compared
to the same period in 2020, primarily due to a decline in expected
credit loss provisions, an increase in non-recurring lease
surrender revenue and savings from lower borrowing costs. The
results in the second quarter of 2020 were impacted by a
non-recurring allowance for expected credit losses on a specific
mortgage receivable and the early redemption premiums described
above.
Choice Properties Other Business Matters
Financing Transactions Subsequent to
the end of the second quarter of 2021, Choice Properties redeemed
in full, at par, plus accrued and unpaid interest thereon, the
$200 million aggregate principal
amount of series 9 senior unsecured debentures outstanding bearing
interest at 3.60% with an original maturity date of September 20, 2021.
Weston Foods Operating Results
(unaudited)
|
|
|
|
|
|
|
|
($ millions except
where otherwise
|
|
|
|
|
|
|
|
indicated)
|
|
12 Weeks
Ended
|
|
|
24 Weeks
Ended
|
|
|
For the periods ended
as indicated
|
|
Jun. 19,
2021
|
Jun. 13,
2020
|
$ Change
|
% Change
|
Jun. 19,
2021
|
Jun. 13,
2020
|
$ Change
|
% Change
|
Sales
|
|
$
|
431
|
$
|
412
|
$
|
19
|
4.6%
|
$
|
903
|
$
|
947
|
$
|
(44)
|
(4.6)%
|
Operating
loss
|
|
$
|
(6)
|
$
|
(49)
|
$
|
43
|
87.8%
|
$
|
(6)
|
$
|
(48)
|
$
|
42
|
87.5%
|
Adjusted
EBITDA(1)
|
|
$
|
26
|
$
|
7
|
$
|
19
|
271.4%
|
$
|
60
|
$
|
59
|
$
|
1
|
1.7%
|
Adjusted EBITDA
margin(1)
|
|
|
6.0%
|
|
1.7%
|
|
|
|
|
6.6%
|
|
6.2%
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(i)
|
|
$
|
33
|
$
|
44
|
$
|
(11)
|
(25.0)%
|
$
|
69
|
$
|
87
|
$
|
(18)
|
(20.7)%
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Depreciation and
amortization in the second quarter of 2020 included
$10 million of accelerated depreciation related to
restructuring and other related costs.
|
Sales Weston Foods sales in the second quarter
of 2021 were $431 million, an increase of $19 million, or
4.6%, compared to the same period in 2020. Sales included the
unfavourable impact of foreign currency translation of
approximately 7.5%. Excluding the unfavourable impact of foreign
currency translation, sales increased by 12.1% primarily due to
lapping the negative impact of the COVID-19 pandemic in the second
quarter of 2020. Sales were impacted by an increase in volumes in
foodservice and retail categories, partially offset by the
unfavourable impact of changes in sales mix.
Operating Loss Weston Foods operating loss in the
second quarter of 2021 was $6 million compared to operating
loss of $49 million in the same period in 2020 due to an
improvement in the underlying operating performance of
$20 million, and the favourable year-over-year net impact of
adjusting items totaling $23 million. The adjusting items
were:
- the prior year impact of restructuring and other related costs
of $19 million; and
- the favourable year-over-year impact of the fair value
adjustment of derivatives of $4
million.
Adjusted EBITDA(1) Weston Foods adjusted
EBITDA(1) in the second quarter of 2021 was
$26 million compared to $7 million in the same period
in 2020, an increase of $19 million, or 271.4%. The
increase was driven by the increase in sales described above, a
decrease in COVID-19 related expenses and productivity
improvements, partially offset by higher input, labour and
distribution costs.
Weston Foods adjusted EBITDA margin(1) in the second
quarter of 2021 increased to 6.0% compared to 1.7% in the
second quarter of 2020. The improvement in adjusted EBITDA
margin(1) in the second quarter of 2021 was driven by
the factors described above.
Depreciation and Amortization Weston
Foods depreciation and amortization in the second quarter of 2021
was $33 million, a decrease of $11 million compared to
the same period in 2020. Depreciation and amortization in the
second quarter of 2020 included $10 million of accelerated
depreciation related to Weston Foods' transformation program.
Excluding this amount, depreciation and amortization in the second
quarter of 2021 decreased by $1 million.
Weston Foods Other Business Matters
Restructuring and other related
costs Weston Foods continuously evaluates
strategic and cost reduction initiatives related to its
manufacturing assets, distribution networks and administrative
infrastructure with the objective of ensuring a low cost
operating structure. There were no restructuring and other related
costs at Weston Foods recorded in the second quarter of 2021. In
the second quarter of 2020, Weston Foods recorded restructuring and
other related costs of $19 million which were primarily
related to Weston Foods' transformation program.
OUTLOOK(2)
For 2021, the Company expects adjusted net
earnings(1) to increase due to the results from its
operating segments and to use excess cash to repurchase shares and
to settle the remaining net debt associated with the equity forward
sale agreement.
Loblaw Loblaw cannot predict the precise impacts of
COVID-19 on its 2021 financial results. However, Loblaw anticipates
that grocery sales will remain elevated due to the continued impact
of the pandemic, including the impact of lockdown measures in many
jurisdictions. As economies re-open, revenue growth will be
challenged while lapping elevated 2020 sales. Costs are expected to
improve, as Loblaw laps elevated COVID-19 related expenses, and as
Process & Efficiencies and Data-Driven Insights programs
continue to deliver benefits.
Loblaw previously announced that, on a full year basis, it
expects:
- its core retail business to grow earnings faster than
sales;
- growth in financial services profitability;
- to invest approximately $1.2
billion in capital expenditures, net of proceeds from
property disposals; and
- to return capital to shareholders by allocating a significant
portion of free cash flow to share repurchases.
Based on Loblaw's operating and financial performance in the
first half of 2021, it now expects low to mid-twenties percentage
growth in adjusted diluted net earnings per common share, excluding
the impact of the 53rd week in the fourth quarter of fiscal year
2020.
In the four weeks following the end of the second quarter of
2021, Loblaw food retail same-store sales declined by 1.0% when
compared to the same period last year.
During the second quarter, Loblaw's COVID-19 related costs were
approximately $70 million, inclusive
of approximately $25 million related
to one-time bonuses and benefits for store and distribution centre
colleagues. Loblaw incurred COVID-19 costs in the four weeks after
the end of the second quarter of 2021 amounted to approximately
$9 million.
Choice Properties Choice Properties' goal is to
provide net asset value appreciation, stable net operating income
growth and capital preservation, all with a long-term
focus.
Although there remains uncertainty on the longer-term impact of
the COVID-19 pandemic, Choice Properties remains confident that its
business model and disciplined approach to financial management
will continue to position it well. At the end of the second quarter
of 2021, Choice Properties' diversified portfolio of retail,
industrial and office properties was 96.9% occupied and leased to
high-quality tenants across Canada. Its retail portfolio is primarily
leased to grocery stores, pharmacies or other necessity-based
tenants, and logistics providers, who continue to perform well in
this environment and provide stability to Choice Properties'
overall portfolio.
Choice Properties continues to advance its development program,
which provides Choice Properties with the best opportunity to add
high-quality real estate to its portfolio at a reasonable cost.
Choice Properties has a mix of development projects ranging in
size, scale, and complexity, including retail intensification
projects, which provide incremental growth to its existing sites,
to larger, more complex mixed-use developments which are expected
to drive net asset value growth in the future.
In 2021, Choice Properties plans to continue improving its
portfolio quality and seek out opportunities to strengthen its
balance sheet. In addition, Choice Properties has approximately
$250 million in debt obligations
coming due over the remainder of the year, which is a manageable
amount, and which Choice Properties intends to refinance with
longer term debt or repay with excess cash on hand.
Weston Foods The uncertainty associated with the
pandemic makes it difficult to reliably estimate future sales
trends and overall financial performance of the business. The
current assumption of management is that stricter
government-mandated lockdowns implemented in many regions in the
fourth quarter of 2020 will ease by the second half of 2021. Weston
Foods foresees continued inflationary headwinds and is now
expecting higher commodity, labour and distribution costs in the
second half of the year. Weston Foods is taking actions to address
near-term cost pressures however we expect its full year earnings
to be impacted. On that basis, Weston Foods has revised its 2021
outlook and expects:
- sales to be modestly higher compared to 2020, after excluding
the impact of foreign currency translation and the impact of the
53rd week in fiscal 2020;
- adjusted EBITDA(1) to be moderately
lower compared to 2020, after excluding the impact of the 53rd
week in fiscal 2020;
- capital expenditures to be approximately $160 million; and
- depreciation to increase compared to 2020.
DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the second quarter of 2021, 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
|
$0.600 per share
payable October 1, 2021, to shareholders of record September 15,
2021;
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares,
Series I
|
$0.3625 per
share payable September 15, 2021, to shareholders of record August
31, 2021;
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares,
Series III
|
$0.3250 per share
payable October 1, 2021, to shareholders of record September 15,
2021;
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares,
Series IV
|
$0.3250 per share
payable October 1, 2021, to shareholders of record September 15,
2021;
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares,
Series V
|
$0.296875 per share
payable October 1, 2021, to shareholders of record September 15,
2021.
|
NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures as it believes
these measures provide useful information to both management and
investors with regard to accurately assessing the Company's
financial performance and financial condition.
Management uses these and other non-GAAP 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 excludes
additional 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.
For reconciliation to, and description of the Company's non-GAAP
financial measures and financial metrics, see Section 8, "Non-GAAP
Financial Measures", of the MD&A in the Company's 2021 Second
Quarter Report.
Non-GAAP Financial Measures Policy Change Effective First
Quarter of 2021 In 2020, management undertook a review of
historical adjusting items as part of an effort to reduce the
number of non-GAAP items it adjusts for in its financial reporting.
Management concluded that, in order to present adjusting items in a
manner more consistent with that of its Canadian and U.S. peers,
the Company will no longer adjust for fixed asset and other related
impairments (net of recoveries), certain restructuring and other
related costs, pension settlement costs, statutory income tax rate
changes or other items. For further details please refer to Section
9.1 "Non-GAAP Financial Measures Policy Change Effective First
Quarter of 2021" of the MD&A in the Company's 2021 Second
Quarter Report.
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 expectation of operating and
financial performance in 2021 is based on certain assumptions,
including assumptions about the COVID-19 pandemic, healthcare
reform impacts, anticipated cost savings and operating efficiencies
and anticipated benefits from strategic initiatives. The Company's
estimates, beliefs and assumptions are inherently subject to
significant business, economic, competitive and other uncertainties
and contingencies regarding future events, including the COVID-19
pandemic 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 "Enterprise Risks and Risk Management" section,
of the MD&A in the Company's 2020 Annual Report and the
Company's Annual Information Form for the year ended
December 31, 2020.
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.
SEGMENT INFORMATION
The Company has three reportable operating segments: Loblaw,
Choice Properties and Weston Foods. Other and Intersegment includes
eliminations, intersegment adjustments related to the
consolidation, cash and short-term investments held by the Company
and all other company level activities that are not allocated to
the reportable operating segments, as further illustrated
below.
The accounting policies of the reportable operating segments are
the same as those described in the Company's 2020 audited annual
consolidated financial statements. The Company measures each
reportable operating segment's performance based on adjusted
EBITDA(1) and adjusted operating income(1).
No reportable operating segment is reliant on any single external
customer.
|
|
12 Weeks
Ended
|
|
|
Jun. 19,
2021
|
|
Jun. 13,
2020(3)
|
($
millions)
|
|
Loblaw
|
|
Choice
Properties
|
|
Weston
Foods
|
|
Other
and
Intersegment
|
|
Total
|
|
Loblaw
|
|
Choice
Properties
|
|
Weston
Foods
|
|
Other and
Intersegment
|
|
Total
|
Revenue
|
|
$
|
12,491
|
|
$
|
324
|
|
$
|
431
|
|
$
|
(315)
|
|
$
|
12,931
|
|
$
|
11,957
|
|
$
|
315
|
|
$
|
412
|
|
$
|
(327)
|
|
$
|
12,357
|
Operating income
(loss)
|
|
$
|
750
|
|
$
|
503
|
|
$
|
(6)
|
|
$
|
(191)
|
|
$
|
1,056
|
|
$
|
402
|
|
$
|
(29)
|
|
$
|
(49)
|
|
$
|
77
|
|
$
|
401
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(income) and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing
charges
|
|
161
|
|
418
|
|
—
|
|
(76)
|
|
503
|
|
176
|
|
67
|
|
(1)
|
|
279
|
|
521
|
Earnings (loss)
before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
$
|
589
|
|
$
|
85
|
|
$
|
(6)
|
|
$
|
(115)
|
|
$
|
553
|
|
$
|
226
|
|
$
|
(96)
|
|
$
|
(48)
|
|
$
|
(202)
|
|
$
|
(120)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
$
|
750
|
|
$
|
503
|
|
$
|
(6)
|
|
$
|
(191)
|
|
$
|
1,056
|
|
$
|
402
|
|
$
|
(29)
|
|
$
|
(49)
|
|
$
|
77
|
|
$
|
401
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
|
614
|
|
1
|
|
33
|
|
(75)
|
|
573
|
|
598
|
|
—
|
|
44
|
|
(76)
|
|
566
|
Adjusting
items(i)
|
|
5
|
|
(281)
|
|
(1)
|
|
137
|
|
(140)
|
|
6
|
|
230
|
|
12
|
|
(136)
|
|
112
|
Adjusted
EBITDA(i)
|
|
$
|
1,369
|
|
$
|
223
|
|
$
|
26
|
|
$
|
(129)
|
|
$
|
1,489
|
|
$
|
1,006
|
|
$
|
201
|
|
$
|
7
|
|
$
|
(135)
|
|
$
|
1,079
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(ii)
|
|
497
|
|
1
|
|
33
|
|
(75)
|
|
456
|
|
480
|
|
—
|
|
34
|
|
(76)
|
|
438
|
Adjusted
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
(loss)(i)
|
|
$
|
872
|
|
$
|
222
|
|
$
|
(7)
|
|
$
|
(54)
|
|
$
|
1,033
|
|
$
|
526
|
|
$
|
201
|
|
$
|
(27)
|
|
$
|
(59)
|
|
$
|
641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Certain items are
excluded from operating income (loss) to derive adjusted
EBITDA(1). Adjusted EBITDA(1) is used
internally by management when analyzing segment underlying
operating performance.
|
(ii)
|
Excludes $117 million
(2020 – $118 million) of amortization of intangible assets acquired
with Shoppers Drug Mart, recorded by Loblaw and nil (2020 – $10
million) of accelerated depreciation recorded by Weston Foods,
related to restructuring and other related costs.
|
|
|
24 Weeks
Ended
|
|
|
Jun. 19,
2021
|
|
Jun. 13,
2020(3)
|
(unaudited)
($ millions of
Canadian dollars)
|
|
Loblaw
|
|
Choice
Properties
|
|
Weston
Foods
|
|
Other
and
Intersegment
|
|
Total
|
|
Loblaw
|
|
Choice
Properties
|
|
Weston
Foods
|
|
Other and
Intersegment
|
|
Total
|
Revenue
|
|
$
|
24,363
|
|
$
|
651
|
|
$
|
903
|
|
$
|
(634)
|
|
$
|
25,283
|
|
$
|
23,757
|
|
$
|
640
|
|
$
|
947
|
|
$
|
(654)
|
|
$
|
24,690
|
Operating income
(loss)
|
|
$
|
1,365
|
|
$
|
788
|
|
$
|
(6)
|
|
$
|
(261)
|
|
$
|
1,886
|
|
$
|
941
|
|
$
|
48
|
|
$
|
(48)
|
|
$
|
58
|
|
$
|
999
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(income) and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing
charges
|
|
321
|
|
765
|
|
1
|
|
(38)
|
|
1,049
|
|
348
|
|
(189)
|
|
(2)
|
|
106
|
|
263
|
Earnings (loss)
before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
$
|
1,044
|
|
$
|
23
|
|
$
|
(7)
|
|
$
|
(223)
|
|
$
|
837
|
|
$
|
593
|
|
$
|
237
|
|
$
|
(46)
|
|
$
|
(48)
|
|
$
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
1,365
|
|
$
|
788
|
|
$
|
(6)
|
|
$
|
(261)
|
|
$
|
1,886
|
|
$
|
941
|
|
$
|
48
|
|
$
|
(48)
|
|
$
|
58
|
|
$
|
999
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
|
1,224
|
|
2
|
|
69
|
|
(162)
|
|
1,133
|
|
1,192
|
|
1
|
|
87
|
|
(154)
|
|
1,126
|
Adjusting
items(i)
|
|
(4)
|
|
(342)
|
|
(3)
|
|
154
|
|
(195)
|
|
36
|
|
379
|
|
20
|
|
(181)
|
|
254
|
Adjusted
EBITDA(i)
|
|
$
|
2,585
|
|
$
|
448
|
|
$
|
60
|
|
$
|
(269)
|
|
$
|
2,824
|
|
$
|
2,169
|
|
$
|
428
|
|
$
|
59
|
|
$
|
(277)
|
|
$
|
2,379
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(ii)
|
|
990
|
|
2
|
|
69
|
|
(162)
|
|
899
|
|
955
|
|
1
|
|
68
|
|
(154)
|
|
870
|
Adjusted
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income(i)
|
|
$
|
1,595
|
|
$
|
446
|
|
$
|
(9)
|
|
$
|
(107)
|
|
$
|
1,925
|
|
$
|
1,214
|
|
$
|
427
|
|
$
|
(9)
|
|
$
|
(123)
|
|
$
|
1,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Certain items are
excluded from operating income to derive adjusted
EBITDA(1). Adjusted EBITDA(1) is used
internally by management when analyzing segment underlying
operating performance.
|
(ii)
|
Excludes
$234 million (2020 – $237 million) of amortization of
intangible assets acquired with Shoppers Drug Mart, recorded by
Loblaw and nil (2020 – $19 million) of accelerated
depreciation recorded by Weston Foods, related to restructuring and
other related costs.
|
2021 SECOND QUARTER REPORT
The Company's 2020 Annual Report and 2021 Second Quarter Report
are available in the Investor Centre section of the Company's
website at www.weston.ca and have been filed on SEDAR and are
available at www.sedar.com.
INVESTOR RELATIONS
Shareholders, security analysts and investment professionals
should direct their requests to Roy
MacDonald, Vice President, Investor Relations,
at the Company's Executive Office or by e-mail at
investor@weston.ca.
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"). For
information regarding Loblaw, readers should refer to the materials
filed by Loblaw on SEDAR from time to time. These filings are also
maintained on Loblaw's corporate website at www.loblaw.ca.
This News Release also includes selected information on Choice
Properties, a public real estate investment trust with units
trading on the TSX. For information regarding Choice Properties,
readers should refer to the materials filed by Choice Properties on
SEDAR from time to time. These filings are also maintained on
Choice Properties' website at www.choicereit.ca.
SECOND QUARTER CONFERENCE CALL AND WEBCAST
George Weston Limited will host a conference call as well as an
audio webcast on Friday, July 30,
2021 at 9:00 a.m. (ET). To access via tele-conference,
please dial 416-764-8688 or 1-888-390-0546. The playback will be
available two hours after the event at 416-764-8677 or
1-888-390-0541, passcode: 388778#. To access via audio webcast,
please visit the Investor Centre section of www.weston.ca.
Pre-registration will be available.
Ce rapport est disponible en français.
Endnotes
|
|
|
(1)
|
See the "Non-GAAP
Financial Measures" section of the Company's 2021 Second Quarter
Results, which includes the reconciliation of such non-GAAP
measures to the most directly comparable GAAP measures.
|
(2)
|
This News Release
contains forward-looking information. See "Forward-Looking
Statements" section of this News Release and the Company's 2021
Second Quarter Report for a discussion of material factors that
could cause actual results to differ materially from the forecasts
and projections herein and of the material factors and assumptions
that were used when making these statements. This News Release
should be read in conjunction with GWL's filings with securities
regulators made from time to time, all of which can be found at
www.weston.ca and www.sedar.com.
|
(3)
|
Certain figures have
been restated due to the non-GAAP financial measures policy change.
See the "Non-GAAP Financial Measures Policy Change Effective First
Quarter of 2021" section of the Company's 2021 Second Quarter
Management Discussion & Analysis.
|
(4)
|
GWL Corporate refers
to the non-consolidated financial results and metrics of GWL. GWL
Corporate is a subset of Other and Intersegment.
|
(5)
|
Compound Average
Growth Rate ("CAGR") is the measure of annualized growth over a
period longer than one year. CAGR is the mean annual growth rate
over a two year period, 2019 to 2021.
|
SOURCE George Weston Limited