George Weston Ltd.

Overview Key strengths Key risks Management focused on growth and cost efficiency at the retail and REIT segments, post the sale of Weston Foods Limited discretionary cash flow following dividend distributions and share buybacks Choice Properties Real Estate Investment Trust's (Choice or the REIT) performance is supported by the REIT?s portfolio of necessity-based retailers and new development pipeline Funding requirements for development pipeline at the REIT could affect consolidated balance sheet if majority is debt-funded Strong position in food and pharmacy retail through subsidiary Loblaw Cos. Ltd., which is the largest conventional grocer in Canada Proceeds from sale of Weston Foods are to be returned to shareholders, indicating no material investments opportunities for the mature retail and REIT segments in

...The company's subsidiary, Loblaw, will continue to benefit from its strong market position and expanding omnichannel strategy. Loblaw is Canada's largest retailer, with 1,096 corporate and franchise retail food stores and about 1,345 associate-owned Shoppers Drug Mart stores. As a subsidiary of George Weston Ltd. (GWL), Loblaw generates about 90% of GWL's adjusted consolidated EBITDA. With well-recognized banners, strong penetration of private label products, and a well-developed omnichannel strategy, Loblaw has been well-positioned to weather the COVID-19 pandemic. S&P Global Ratings notes first quarter food retail same-store sales (SSS) at 2.1%, reflecting higher traffic offset by lower basket size; discount banners, however, are benefitting more as restrictions have lifted and consumers return to making multiple grocery trips. In addition, higher levels of food inflation (about 7.7% in first-quarter 2022 and 9.7% in April based on Statistics Canada) is likely to persist through 2022,...

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