George Weston Limited revenue was $13,735 million, an increase of 4.6 per cent or $602 million. Adjusted net earnings were $312 million, an increase of $30 million or 10.6 per cent compared to the same period last year.
“Our first quarter results reflect the consistent and positive momentum from our operating businesses,” said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. “Loblaw continued to provide value and service to its customers, resulting in strong market share gains and Choice Properties delivered consistent operational and financial results while improving the quality of its portfolio.”
George Weston says Loblaw Companies Limited led growth, beginning 2024 with another quarter of strong operational and financial results. The focus on retail excellence continued across its businesses driving sales growth, reductions in shrink, and earnings growth. Loblaw’s discount banners, private label brands, and personalized PC Optimum offers resonated with customers. This resulted in higher store traffic, strong market share gains in food retail, and revenue growth that stands out against lower internal inflation. An increase in drug retail sales reflected continued strength in front store beauty and cough and cold products. Canada’s Consumer Price Index for Food Purchased From Stores in March was 1.9 per cent, the lowest level recorded in more than two years and was below the headline CPI in the first quarter of 2024. Loblaw’s internal food inflation remained below Canada’s CPI for Food Purchased From Stores again this quarter.
George Weston says the 10.6 per cent adjusted net earnings increase “was driven by the favourable year-over-year impact of $26 million from the contribution of the publicly traded operating companies and the favourable year-over-year impact of $4 million at GWL Corporate primarily due to the year-over-year impact of the fair value adjustment on other investments.”
Choice Properties Real Estate Investment Trust, George Weston’s second reportable operating segment, also had a strong first quarter start to the year as it continued to see robust tenant demand for its necessity-based properties and significant rental rate lifts on lease renewals in its industrial portfolio. Choice Properties further strengthened its market-leading portfolio by executing over $60 million of real estate transactions and completing development projects worth approximately $75 million during the quarter.
Choice Properties revenue in the first quarter of 2024 was $349 million, an increase of $24 million, or 7.4 per cent, compared to the same period in 2023 and included revenue from the sale of residential inventory in the first quarter of 2024 of $11 million and revenue of $197 million (2023 – $189 million) generated from tenants within Loblaw.
