Toronto / CA. (gwl) George Weston Limited (GWL) announced its consolidated unaudited results for the 16 weeks ended October 03, 2020. GWL’s 2020 Third 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.
«Our financial results in the third quarter underscore the resiliency of our businesses, with each showing improved financial performance over the second quarter of 2020,» said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. «Loblaw generated strong same-store sales and furthered key strategic initiatives. Choice Properties collected close to 98 percent of rents in the quarter and made significant progress in its capital recycling program to further improve the quality of its portfolio. And after a very challenging second quarter, Weston Foods experienced an improvement in foodservice sales and better service levels and manufacturing efficiency, all while continuing to advance its transformation program.»
Loblaw Companies Limited delivered strong results in a quarter still significantly affected by Covid-19, with same-store sales increases, strong online growth and an improving margin trend, supported by significant investments of USD 85 million to ensure the safety and security of customers and colleagues. Loblaw maintained its commitment to enhance the overall value proposition for consumers, maintaining its promotional intensity. In the quarter, Loblaw made two important announcements in its strategic growth areas of Payments and Rewards and Connected Health, with the launch of the PC Money Account and an investment in Maple Corporation and the launch of a PC Health app, providing Canadians with digital financial services and health and wellness services bolstered by PC Optimum loyalty rewards.
Choice Properties Real Estate Investment Trust results reflected solid earnings, increased rent collections, lower bad debt provisions and the resumption of investment activity after a difficult second quarter. During the third quarter, Choice Properties collected 98 percent of contractual rents, further underscoring the stability of its necessity-based portfolio. Choice Properties continued to support tenants negatively impacted by the pandemic by providing rent relief through rent deferrals and other arrangements, including participating in the Canada Emergency Commercial Rent Assistance (CECRA) rent relief program, recording a bad debt provision of USD 4 million for certain past due amounts. Additionally, Choice Properties completed three acquisitions and one disposition in the third quarter, consistent with its ongoing commitment to strengthen its balance sheet by improving the quality of the portfolio and reducing leverage.
Weston Foods sales and earnings improved in the third quarter of 2020 compared to the second quarter, as food retailers began to reopen bakery display cases and government mandated restrictions for dine-in restaurants eased in several regions. During the third quarter of 2020, Weston Foods incurred USD 4 million in Covid-19 costs relating to increased health and safety measures to protect its colleagues. Despite the easing of certain Covid-19 restrictions in the quarter, Weston Foods’ year-over-year financial results continue to reflect the negative impact of the pandemic on sales in certain retail categories and foodservice channels. Operationally, service levels and manufacturing efficiency improved, and the benefits of Weston Foods’ transformation program continued.
The Company’s strong liquidity and ability to respond to the ever-changing demands of the current environment positions us well for the long term.
For additional information please read the Company’s PDF file below (228 KB):20201118-GWL-Q3-2020