George Weston Limited Reports Adjusted Diluted Net Earnings Per Common Share Growth of 15.1% in the Third Quarter

TORONTO, Nov. 14, 2025 /CNW/ - George Weston Limited (TSX:WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 16 weeks ended October 4, 2025(2). GWL's 2025 Third Quarter Report has been filed on SEDAR+ and is available at www.sedarplus.ca and in the Investor Centre section of the Company's website at www.weston.ca."Our strong quarterly results reflect the positive momentum in our operating businesses," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Loblaw attracted more customers through its focus on value and convenience, while Choice Properties experienced strong tenant demand across its necessity-based portfolio. With our businesses continuing to serve the needs of their customers and tenants while executing on their long-term strategies, George Weston is positioned for continued growth."Loblaw Companies Limited ("Loblaw") delivered another quarter of consistent operational and financial performance. The combination of everyday value offerings, personalized PC OptimumTM loyalty rewards, impactful promotions, and new store openings drove higher levels of customer engagement. Canadians recognized its differentiated value, quality, service, and convenience across its nationwide network of stores and digital platforms, driving sales growth of $857 million in the quarter. The food retail business attracted more customers and larger baskets, resulting in both the Super Market and Hard Discount banners outperforming their peer group on tonnage market share growth in the quarter. Loblaw's Hard Discount and Real Canadian Superstore banners again outperformed conventional stores, benefitting from the consumer shift to value. Loblaw opened 19 Maxi and NoFrills stores in the quarter, bringing discount options to more communities across the country. In drug retail, pharmacy and healthcare services contributed to strong results, led by specialty drug growth. Front store sales momentum continued in cosmetics and over-the-counter categories, which were only partially offset by the previously announced strategic exit from certain electronics items. Loblaw remains on track with its full-year plan to open approximately 76 new stores and 100 new pharmacy clinics, opening 47 new stores and 55 new pharmacy clinics year-to-date, providing access to affordable, quality groceries and healthcare to underserved communities across Canada.Choice Properties Real Estate Investment Trust ("Choice Properties") had another strong quarter, with Same-Asset NOI(4) and Funds from Operations(1) growth reflecting robust tenant demand for its grocery-anchored retail portfolio and its well-located industrial assets. Choice Properties continued to progress its commercial development pipeline, completing seven retail intensifications in the quarter, and strengthened its financial position by extending its debt maturity profile. Looking ahead, Choice Properties remains focused on disciplined financial management while creating long-term value for unitholders.2025 THIRD QUARTER HIGHLIGHTSRevenue was $19,548 million, an increase of $863 million, or 4.6%.Adjusted EBITDA(1) was $2,340 million, an increase of $182 million, or 8.4%.Net earnings available to common shareholders of the Company were $477 million ($1.23 per common share), an increase of $462 million ($1.20 per common share). The increase was primarily due to the favourable year-over-year impact of the fair value adjustment of the Trust Unit liability.Adjusted net earnings available to common shareholders of the Company(1) were $533 million, an increase of $57 million, or 12.0%.Adjusted diluted net earnings per common share(1) were $1.37, an increase of $0.18 per common share, or 15.1%.Repurchased for cancellation 2.6 million common shares at a cost of $227 million.GWL Corporate free cash flow(1) was $433 million.The Company completed a three-for-one stock split of its outstanding common shares. The stock split was implemented by way of a stock dividend, with shareholders receiving two additional common shares for each common share held. The stock split was effective at the close of business on August 18, 2025, for shareholders of record as of the close of business on August 14, 2025. All share and per share amounts presented herein have been retrospectively adjusted to reflect the stock split.CONSOLIDATED RESULTS OF OPERATIONSThe Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company's financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company's financial statements reflects the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate.The Company's results reflect 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 increases and positively impacted when the Trust Unit price declines.($ millions except where otherwise indicated) For the periods ended as indicated16 Weeks EndedOct. 4, 2025 Oct. 5, 2024 $ Change % ChangeRevenue$ 19,548$ 18,685$ 8634.6 %Operating income$ 1,638$ 1,618$ 201.2 %Adjusted EBITDA(1) from:Loblaw$ 2,215$ 2,067$ 1487.2 %Choice Properties2612372410.1 %Effect of consolidation(138)(139)10.7 %Publicly traded operating companies(i)$ 2,338$ 2,165$ 1738.0 %GWL Corporate2(7)9128.6 %Adjusted EBITDA(1)$ 2,340$ 2,158$ 1828.4 %Adjusted EBITDA margin(1)12.0 %11.5 %Net earnings attributable to shareholders of the Company$ 491$ 29$ 4621,593.1 %Loblaw(ii)$ 419$ 409$ 102.4 %Choice Properties242(663)905136.5 %Effect of consolidation(157)291(448)(154.0) %Publicly traded operating companies(i)$ 504$ 37$ 4671,262.2 %GWL Corporate(27)(22)(5)(22.7) %Net earnings available to common shareholders of the Company$ 477$ 15$ 4623,080.0 %Diluted net earnings per common share(3) ($)$ 1.23$ 0.03$ 1.204,000.0 %Loblaw(ii)$ 437$ 405$ 327.9 %Choice Properties1191021716.7 %Effect of consolidation129333.3 %Publicly traded operating companies(i)$ 568$ 516$ 5210.1 %GWL Corporate(35)(40)512.5 %Adjusted net earnings available to common shareholders of the Company(1) $ 533$ 476$ 5712.0 %Adjusted diluted net earnings per common share(1)(3) ($)$ 1.37$ 1.19$ 0.1815.1 %(i)Publicly traded operating companies is the contribution to the Company's financial performance from its controlling interest in Loblaw and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See "Results by Operating Segment" section of this News Release for further information.(ii)Contribution from Loblaw, net of non-controlling interests.Net earnings available to common shareholders of the Company in the third quarter of 2025 were $477 million ($1.23 per common share), an increase of $462 million ($1.20 per common share) compared to the same period in 2024. The increase was due to the favourable year-over-year net impact of adjusting items totaling $405 million ($1.02 per common share) and an improvement of $57 million ($0.18 per common share) in the consolidated underlying operating performance of the Company.The favourable year-over-year net impact of adjusting items totaling $405 million ($1.02 per common share) was primarily due to:the favourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $501 million ($1.26 per common share) due to an increase in Choice Properties' unit price, which resulted in a fair value loss of $67 million in the third quarter of 2025 compared to a fair value loss of $568 million in the prior year; andthe favourable year-over-year impact of lower amortization of intangible assets at Loblaw of $56 million ($0.15 per common share) primarily related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") which are now fully amortized; partially offset by,the unfavourable year-over-year impact of the prior year recovery related to the President's Choice Bank ("PC Bank") commodity tax matter at Loblaw of $66 million ($0.17 per common share);the unfavourable year-over-year impact of the fair value adjustment on investment properties of $50 million ($0.13 per common share) driven by Choice Properties, net of the effect of consolidation;the unfavourable year-over-year impact of the fair value adjustment on Choice Properties' investment in real estate securities of Allied Properties Real Estate Investment Trust ("Allied") of $14 million ($0.03 per common share) as a result of the change in Allied's unit price;the unfavourable impact of the wind-down of the Theodore & Pringle optical business at Loblaw of $12 million ($0.03 per common share); andthe unfavourable year-over-year impact of the deferred tax recovery of $10 million ($0.03 per common share) related to the outside basis difference in certain Loblaw shares as a result of GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB").Adjusted net earnings available to common shareholders of the Company(1) in the third quarter of 2025 were $533 million, an increase of $57 million, or 12.0%, compared to the same period in 2024. The increase was driven by the favourable year-over-year impact of $52 million from the contribution of the publicly traded operating companies, and the favourable year-over-year impact of $5 million at GWL Corporate due to a fair value gain on other investments, partially offset by an increase in adjusted net interest expense and other financing charges(1) and an increase in income tax expense related to GWL's participation in Loblaw's NCIB.Adjusted diluted net earnings per common share(1) were $1.37 in the third quarter of 2025, an increase of $0.18 per common share, or 15.1%, compared to the same period in 2024. The increase was due to the performance in adjusted net earnings available to common shareholders(1) as described above and the favourable impact of shares purchased for cancellation over the last 12 months ($0.04 per common share) pursuant to the Company's NCIB.CONSOLIDATED OTHER BUSINESS MATTERSGWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities:NCIB – Purchased and Cancelled Shares In the third quarter of 2025, the Company purchased and cancelled 2.6 million common shares (2024 – 4.0 million common shares) for aggregate consideration of $227 million (2024 – $284 million) under its NCIB. As at October 4, 2025, the Company had 382.3 million common shares issued and outstanding, net of shares held in trusts (October 5, 2024 – 392.5 million common shares).The Company has 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.In the third quarter of 2025, the Toronto Stock Exchange ("TSX") accepted an amendment to the Company's NCIB to allow Wittington Investments, Limited ("Wittington"), the Company's controlling shareholder, to participate in the NCIB to maintain its proportionate ownership interest in the Company at approximately 59.2%. Purchases of common shares from Wittington will be made during the TSX's Special Trading Session pursuant to an automatic disposition plan agreement among the Company's broker, the Company and Wittington. The maximum number of common shares that may be purchased pursuant to the NCIB will be reduced by the number of common shares purchased from Wittington.Refer to note 11, "Share Capital", of the Company's third quarter 2025 unaudited interim period condensed consolidated financial statements ("interim financial statements") for more information.Participation in Loblaw's NCIB The Company participates in Loblaw's NCIB in order to maintain its proportionate percentage ownership interest. In the third quarter of 2025, Loblaw repurchased 3.5 million common shares(i) (2024 – 4.5 million common shares(i)) from the Company for aggregate consideration of $195 million (2024 – $193 million).(i)Adjusted retrospectively to reflect Loblaw's four-for-one stock split effective at the close of business on August 18, 2025.RESULTS BY OPERATING SEGMENT The following table provides key performance metrics for the Company by segment.16 Weeks EndedOct. 4, 2025Oct. 5, 2024($ millions)For the periods ended as indicatedLoblawChoicePropertiesEffect of consol-idationGWL CorporateTotalLoblawChoicePropertiesEffect of consol-idationGWLCorporateTotalRevenue$ 19,395$ 362$ (209)$ —$ 19,548$ 18,538$ 340$ (193)$ —$ 18,685Operating income$ 1,374$ 315$ (53)$ 2$ 1,638$ 1,319$ 376$ (69)$ (8)$ 1,618Adjusted operating income(1)1,419260(19)21,6621,319236(21)(8)1,526Adjusted EBITDA(1)$ 2,215$ 261$ (138)$ 2$ 2,340$ 2,067$ 237$ (139)$ (7)$ 2,158Net interest expense (income) and other financing charges$ 273$ 73$ 65$ 7$ 418$ 238$ 1,039$ (404)$ 2$ 875Adjusted net interest expense (income) and other financing charges(1)273141(70)7351248134(67)2317Earnings (loss) before income taxes$ 1,101$ 242$ (118)$ (5)$ 1,220$ 1,081$ (663)$ 335$ (10)$ 743Income taxes$ 293$ —$ 39$ 6$ 338$ 263$ —$ 44$ (4)$ 303Adjusted income taxes(1)304—3914357263—3714314Net earnings attributable to non-controlling interests$ 389$ —$ —$ 2$ 391$ 409$ —$ —$ 2$ 411Prescribed dividends on preferred shares in share capital———1414———1414Net earnings (loss) available to common shareholders of the Company $ 419$ 242$ (157)$ (27)$ 477$ 409$ (663)$ 291$ (22)$ 15Adjusted net earnings available to common shareholders of the Company(1)43711912(35)5334051029(40)476Effect of consolidation includes the following items:16 Weeks EndedOct. 4, 2025Oct. 5, 2024($ millions)For the periods ended as indicatedRevenueOperatingIncomeAdjusted EBITDA(1)Net InterestExpenseand OtherFinancingChargesAdjusted Net Earnings Available to Common Shareholders(1)RevenueOperatingIncomeAdjusted EBITDA(1)Net InterestExpenseand OtherFinancing ChargesAdjusted Net Earnings Available to Common Shareholders(1)Elimination of intercompany rental revenue$ (214)$ 44Full story available on Benzinga.com