- George Weston (TSX:WN) has reported a 10.4 per cent increase in revenue for the quarter ending March 21, 2020
- Total revenue for the period jumped C$1.16 billion, from $11.17 billion in 2019 to $12.33 billion this year
- Adjusted EBITDA also increased by 12.6 per cent, from $1.15 billion to $1.3 billion
- The company attributed the increases to improved performance by Loblaw and Weston Foods, which it has increased its stakes in
- George Weston (WN) is up 0.77 per cent to $99.31 per share, with a market cap of $15.25 billion
George Weston (TSX:WN) has reported a 10.4 per cent increase in revenue for the quarter ending March 21, 2020.
The company operates through three segments: Loblaw Companies Limited, Choice Properties Real Estate Investment Trust, and Weston Foods.
Total revenue for 2020’s first quarter jumped C$1.16 billion, from $11.17 billion in 2019 to $12.33 billion this year. Adjusted EBITDA also grew by a similar margin, up 12.6 per cent from $1.15 billion to $1.3 billion.
George Weston attributed the improved financials primarily to the increase in the operating performance of Loblaw and Weston Foods. Loblaw alone contributed $11.8 billion in total revenue.
Both companies have seen a significant spike in business as a result of the COVID-19 pandemic. The public’s reaction to the crisis led to widespread panic buying and hoarding of everyday items.
As a result, Loblaw saw a 10.7 per cent increase in revenue for 2020’s first quarter, citing “unprecedented consumer demand.”
George Weston’s performance growth was also partly due to its increased holding in Loblaw. The company increased its stake in Loblaw through share repurchases.
However, any further increases in operating performance were offset by an increase in adjusted net interest expenses and other financing charges.
George Weston’s Chairman and CEO, Galen G Weston, expressed pride in the company’s teams, who kept essential operations and business segments working during the pandemic.
“We continue to make meaningful and necessary investments to ensure the well-being of our customers, colleagues, and tenants during these uncertain times.
“Looking ahead, each of our businesses is set to deliver long-term value creation from a position of operational strength and with a solid financial foundation when we transition to a new post-pandemic reality,” he added.
Subsequent to the quarter’s end, George Weston’s Board of Directors has announced quarterly dividends of 52.5 cents per common share. These will be payable on July 1, 2020.
George Weston (WN) is currently up 0.77 per cent to $99.31 per share at 10:38am EDT.
