TORONTO, May 7, 2024 /CNW/ - George Weston Limited (TSX:WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended March 23, 2024(2). GWL's 2024 First 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 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." Loblaw Companies Limited ("Loblaw") began 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 market-leading 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 ("CPI") for Food Purchased From Stores in March was 1.9%, 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.  Choice Properties Real Estate Investment Trust ("Choice Properties") first quarter was a strong 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. Despite the ongoing macroeconomic uncertainty, Choice Properties' industry-leading balance sheet continues to provide a distinct advantage of allowing its team to remain focused on its core business of owning, operating, and developing real estate. 2024 FIRST QUARTER HIGHLIGHTS Revenue was $13,735 million, an increase of $602 million, or 4.6%. Adjusted EBITDA(1) was $1,623 million, an increase of $116 million, or 7.7%. Adjusted EBITDA(1) from the publicly traded operating companies was $1,631 million, an increase of $111 million, or 7.3%. Net earnings available to common shareholders of the Company were $236 million ($1.73 per common share), a decline of $190 million, or 44.6%, due to the unfavourable year-over-year net impact of adjusting items. Adjusted net earnings available to common shareholders of the Company(1) were $312 million, an increase of $30 million, or 10.6%. Contribution to adjusted net earnings available to common shareholders of the Company(1) from the publicly traded operating companies was $345 million, an increase of $26 million, or 8.2%. Adjusted diluted net earnings per common share(1) were $2.30, an increase of $0.31 per common share, or 15.6%. Repurchased for cancellation 0.9 million common shares at a cost of $158 million. GWL Corporate free cash flow(1) was $141 million. The quarterly common share dividend to be increased by $0.107, or 15.0%, from $0.713 per common share to $0.820 per common share. CONSOLIDATED RESULTS OF OPERATIONS The Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company's financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company's financial statements reflect the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate. The Company's results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations of Choice Properties' Trust Units on the basis that the Trust Units held by unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company's consolidated balance sheet. The Company's financial results are positively impacted when the Trust Unit price declines and negatively impacted when the Trust Unit price increases.   ($ millions except where otherwise indicated) For the periods ended as indicated 12 Weeks Ended Mar. 23, 2024   Mar. 25, 2023 $ Change % Change Revenue $  13,735 $  13,133 $       602 4.6 % Operating income $       971 $       957 $         14 1.5 % Adjusted EBITDA(1) from: Loblaw $    1,542 $    1,446 $         96 6.6 % Choice Properties $       241 $       230 $         11 4.8 % Effect of consolidation $      (152) $      (156) $           4 2.6 % Publicly traded operating companies $    1,631 $    1,520 $       111 7.3 % GWL Corporate $          (8) $        (13) $           5 38.5 % Adjusted EBITDA(1) $    1,623 $    1,507 $       116 7.7 % Adjusted EBITDA margin(1) 11.8 % 11.5 % Net earnings attributable to shareholders of the Company $       246 $       436 $      (190) (43.6) % Loblaw(i) $       243 $       221 $         22 10.0 % Choice Properties $       142 $       271 $      (129) (47.6) % Effect of consolidation $        (64) $           3 $        (67) (2,233.3) % Publicly traded operating companies $       321 $       495 $      (174) (35.2) % GWL Corporate $        (85) $        (69) $        (16) (23.2) % Net earnings available to common shareholders of the Company $       236 $       426 $      (190) (44.6) % Diluted net earnings per common share ($) $      1.73 $      3.01 $     (1.28) (42.5) % Loblaw(i) $       284 $       268 $         16 6.0 % Choice Properties $       109 $         99 $         10 10.1 % Effect of consolidation $        (48) $        (48) $         — — % Publicly traded operating companies $       345 $       319 $         26 8.2 % GWL Corporate $        (33) $        (37) $           4 10.8 % Adjusted net earnings available to common shareholders of the Company(1)   $       312 $       282 $         30 10.6 % Adjusted diluted net earnings per common share(1) ($) $      2.30 $      1.99 $      0.31 15.6 % (i)  Contribution from Loblaw, net of non-controlling interests. Net earnings available to common shareholders of the Company were $236 million ($1.73 per common share) in the first quarter of 2024, a decrease of $190 million ($1.28 per common share) compared to the same period in 2023. The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $220 million ($1.59 per common share), primarily driven by: the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $133 million ($0.93 per common share) as a result of the decrease in Choice Properties' unit price; the unfavourable year-over-year impact of the fair value adjustment on investment properties of $57 million ($0.40 per common share) driven by Choice Properties, net of the effect of consolidation; the unfavourable year-over-year impact of the deferred tax expense of $20 million ($0.16 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") program; and 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 ($0.11 per common share) as a result of the decrease in Allied's unit price. Adjusted net earnings available to common shareholders of the Company(1) in the first quarter of 2024 were $312 million, an increase of $30 million, or 10.6%, compared to the same period in 2023. The 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. Adjusted diluted net earnings per common share(1) were $2.30 in the first quarter of 2024, an increase of $0.31 per common share, or 15.6%, compared to the same period in 2023. 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 ($0.10 per common share) pursuant to the Company's NCIB program. CONSOLIDATED OTHER BUSINESS MATTERS GWL CORPORATE FINANCING ACTIVITIES  The Company completed the following select GWL Corporate financing activities: NCIB – Purchased and Cancelled Shares  In the first quarter of 2024, the Company purchased and cancelled 0.9 million shares (2023 – 1.4 million shares) for aggregate consideration of $158 million (2023 – $231 million) under its NCIB. As at March 23, 2024, the Company had 133.8 million shares issued and outstanding, net of shares held in trusts (March 25, 2023 – 139.3 million shares). In the first quarter of 2024, 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. Refer to note 11, "Share Capital" of the Company's first quarter 2024 unaudited interim period condensed consolidated 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 first quarter of 2024, Loblaw repurchased 1.2 million shares (2023 – 1.6 million shares) from the Company, for aggregate consideration of $182 million (2023 – $188 million). SUBSEQUENT EVENT  Subsequent to the end of the first quarter of 2024, GWL and two subsidiaries of Wittington Investments, Limited co-invested $10 million in a third-party company, of which the Company contributed $4 million. RESULTS BY OPERATING SEGMENT The following table provides key performance metrics for the Company by segment. 12 Weeks Ended Mar. 23, 2024 Mar. 25, 2023   ($ millions) Loblaw Choice Properties Effect of consol-idation GWL Corporate Total Loblaw Choice Properties Effect of consol-idation GWL Corporate Total Revenue $  13,581 $   349 $  (195) $    — $ 13,735 $ 12,995 $   325 $ (187) $      — $ 13,133 Operating income $       859 $   207 $    (86) $    (9) $      971 $      767 $   306 $ (102) $    (14) $      957 Adjusted operating income(1) 966 240 (73) (9) 1,124 885 229 (61) (14) 1,039 Adjusted EBITDA(1) $    1,542 $   241 $  (152) $    (8) $   1,623 $   1,446 $   230 $ (156) $    (13) $  1,507 Net interest expense and other    financing charges $       194 $     65 $    (43) $    (1) $      215 $      181 $     35 $ (145) $      — $       71 Adjusted net interest expense and    other financing charges(1) 194 131 (50) (1) 274 181 130 (48) — 263 Earnings before income taxes $       665 $   142 $    (43) $    (8) $      756 $      586 $   271 $    43 $    (14) $     886 Income taxes $       178 $     — $     21 $   65 $      264 $      151 $     — $    40 $     43 $     234 Adjusted income taxes(1) 207 — 25 13 245 182 — 35 11 228 Net earnings attributable to non-   controlling interests $       244 $     — $      — $     2 $      246 $      214 $     — $    — $       2 $     216 Prescribed dividends on preferred    shares in share capital — — — 10 10 — — — 10 10 Net earnings available to common    shareholders of the Company $       243 $   142 $    (64) $   (85) $      236 $      221 $   271 $     3 $   (69) $     426 Adjusted net earnings available to    common shareholders of the Company(1)   284 109 (48) (33) 312 268 99 (48) (37) 282 Effect of consolidation includes the following items: 12 Weeks Ended Mar. 23, 2024 Mar. 25, 2023   ($ millions) Revenue Operating Income Adjusted EBITDA(1) Net Interest Expense and Other Financing Charges Adjusted Net Earnings Available to CommonShareholders(1) Revenue Operating Income AdjustedEBITDA(1) Net Interest Expense and Other Financing  Charges Adjusted Net Earnings Available to CommonShareholders(1) Elimination of intercompany    rental revenue $  (198) $   (14) $   (14) $     — $   (12) $  ...