George Weston Limited (TSX: WN) reported a mixed financial performance for the quarter ending June 14, 2025. While revenue rose 5.2% YoY to $14.82 billion, up from $14.09 billion a year ago, net earnings plunged 35.5% to $258 million, down from $400 million in Q2 2024.
The sharp decrease was primarily due to an unfavorable $462 million fair value adjustment associated mainly with Choice Properties’ unit price increase of 4.9%. Adjusting for this and other items, net earnings came in at $401 million, an increase from $394 million a year ago, while adjusted diluted earnings per share increased 4.4% to $3.06 from $2.93, benefiting from share repurchases.
Despite lower net earnings, adjusted EBITDA showed strength, increasing 6.5% to $1.92 billion from $1.81 billion a year ago, driven mainly by Loblaw Companies’s performance. Loblaw’s retail segment revenue rose 5.4% to $14.39 billion, supported by improved same-store sales growth in both food (3.5%) and drug retail (4.1%).
Choice Properties, however, swung to a net loss of $154 million from a profit of $514 million last year, primarily driven by higher net interest expenses and the adverse $737 million fair value adjustment on exchangeable units. Despite this, its revenue increased 4.5% to $351 million due to higher rental rates and strategic acquisitions.
The firm generated cash flow from operating businesses of $138 million compared to $129 million a year ago. This led to free cash flow of $293 million, slightly higher than the $282 million recorded in Q2 2024. The company also repurchased 1.1 million shares under its NCIB for $295 million.
Separately, George Weston announced a 3-for-1 stock split said to “maintain accessibility and liquidity for retail investors and employee shareholders.” The split will be effective at the close of business on August 18, 2025, for shareholders of record on August 14, 2025.
George Weston last traded at $262.56 on the TSX.
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