George Weston Limited (TSX: WN) (“GWL” or “the Company”) released its consolidated unaudited financial results for the 16-week period ended October 4, 2025, highlighting another quarter of solid operational execution and strategic progress across its two major operating businesses—Loblaw Companies Limited (“Loblaw”) and Choice Properties Real Estate Investment Trust (“Choice Properties”). The full 2025 Third Quarter Report has been filed on SEDAR+ and is now accessible via sedarplus.ca and the Investor Centre at weston.ca.
Galen G. Weston, Chairman and Chief Executive Officer of George Weston Limited, emphasized that the Company’s performance reflects sustainable momentum across its retail and real estate platforms. “Loblaw attracted more customers through its focus on value and convenience, while Choice Properties experienced strong tenant demand across its necessity-based portfolio,” Weston said. “With our businesses executing effectively on long-term strategies, GWL is well-positioned for continued growth.”
Loblaw: Strong Sales, Expanding Footprint, and Consistent Customer Engagement
Loblaw delivered another quarter of reliable operational and financial performance, continuing a multi-year trend of strengthening its competitive position in food and drug retail. The company’s focus on everyday value, personalized PC Optimum™ rewards, targeted promotions, and expanded store network contributed to rising customer engagement and volume gains.
During the quarter, Loblaw generated $857 million in additional sales, demonstrating that Canadian consumers continue to recognize its value-oriented offerings, high service standards, and national digital and physical retail reach. Both the Supermarket and Hard Discount divisions outperformed peers in tonnage-based market share growth. The Hard Discount segment—including Maxi and No Frills—once again outpaced the conventional store formats, benefitting from customers’ continued shift toward value as household budgets remain pressured.
Loblaw opened 19 new Maxi and No Frills stores, bringing affordable grocery options to more communities across Canada. With its plans to open approximately 76 new stores and 100 pharmacy clinics in 2025, the company remains on track, having opened 47 stores and 55 clinics year-to-date.
In drug retail, pharmacy and healthcare services delivered robust performance, supported by strong specialty drug sales. Cosmetics and OTC categories also contributed to growth, partially offsetting the revenue impact from Loblaw’s strategic decision to exit select low-margin electronics categories.
Choice Properties: Solid NOI Growth and Active Development Pipeline
Choice Properties continued to leverage strong tenant demand for its grocery-anchored retail assets and strategically located industrial properties. The REIT reported growth in both Same-Asset NOI(4) and Funds from Operations (“FFO”)(1), underpinned by stable occupancy and market-supported rental rate escalations.
During the quarter, Choice Properties made further progress on its commercial development pipeline, completing seven retail intensification projects. The REIT also made strides in strengthening its balance sheet by extending its debt maturity profile. The Company reiterated its commitment to disciplined capital allocation while prioritizing long-term value creation for unitholders.
Third Quarter 2025 Consolidated Highlights
- Revenue: $19.55 billion, up 4.6% or $863 million
- Adjusted EBITDA(1): $2.34 billion, up 8.4% or $182 million
- Net earnings available to common shareholders: $477 million ($1.23 per share), up $462 million
- Adjusted net earnings available to common shareholders(1): $533 million, up 12.0%
- Adjusted diluted net earnings per common share(1): $1.37, up 15.1%
- Share repurchases: 2.6 million common shares repurchased for cancellation at a cost of $227 million
- GWL Corporate free cash flow(1): $433 million
- Three-for-one stock split completed in August 2025
Understanding the Consolidated Results
GWL operates primarily through its ownership interests in Loblaw and Choice Properties, both publicly traded entities. Consolidated financial results incorporate the impacts of eliminating intercompany transactions and adjusting for consolidation differences—factors that can cause notable year-over-year variances.
A significant factor in GWL’s reported net earnings movement was the fair value adjustment of Choice Properties’ Trust Unit liability, which fluctuates with market prices. Because the Trust Units held by external unitholders are redeemable for cash, they are treated as a liability on GWL’s balance sheet. Increases in the unit price negatively affect earnings, while decreases provide positive earnings adjustments.
In Q3 2025, GWL reported net earnings of $477 million, reflecting a substantial improvement tied largely to the favourable year-over-year net impact of adjusting items totaling $405 million, combined with stronger underlying operating performance.
The favourable variance in adjusting items was driven primarily by:
- A $501 million favourable shift in the fair value adjustment of the Trust Unit liability
- Lower amortization at Loblaw following the full amortization of intangible assets related to the 2014 Shoppers Drug Mart acquisition
These benefits were partially offset by:
- The absence of last year’s PC Bank commodity tax recovery
- A $50 million unfavourable change in Choice Properties’ fair value adjustment on investment properties
- A $14 million decline in the fair value of its investment in Allied Properties REIT
- Costs associated with winding down Loblaw’s Theodore & Pringle optical business
- A $10 million deferred tax recovery impact related to Loblaw’s NCIB
Adjusted net earnings rose 12.0%, supported by increased contributions from Loblaw and Choice Properties and higher fair value gains on other investments within GWL Corporate.
GWL Corporate: Capital Allocation and Shareholder Returns
The Company continued its disciplined capital allocation strategy through its Normal Course Issuer Bid (“NCIB”). During Q3 2025:
- 2.6 million shares were repurchased and cancelled
- Wittington Investments, GWL’s controlling shareholder, was approved by the TSX to participate in the NCIB, allowing it to maintain its ownership at roughly 59.2%
GWL also continued participating in Loblaw’s NCIB, selling 3.5 million Loblaw shares back to the subsidiary for consideration of $195 million.
Loblaw Segment Results: Revenue and Profitability Expand
Loblaw’s Q3 2025 revenue reached $19.4 billion, rising 4.6% year-over-year, with retail contributing the majority of the growth.
Key highlights:
- Food retail sales rose 4.8%, supported by 2.0% same-store sales growth
- Drug retail sales grew 3.8%, with strong specialty pharmacy performance
- Retail square footage increased to 72.9 million square feet
- Financial services revenue rose 5.5%, supported by higher interest income and insurance commissions
Loblaw’s adjusted EBITDA increased 7.2% to $2.215 billion, supported by improved retail gross profit margins—driven primarily by better shrink management—and operating leverage from higher sales volumes.
Depreciation and amortization declined significantly due to the full amortization of Shoppers Drug Mart intangible assets.
Choice Properties: Financial Performance Strengthens
Choice Properties reported revenue of $362 million, up 6.5%, driven by higher rental rates, contributions from acquisitions and developments, and increased lease surrender income.
Net interest expense and other financing charges declined markedly due to a $974 million favourable variance in the fair value adjustment of Exchangeable Units. This contributed to net income of $242 million, a major improvement from last year’s net loss.
FFO increased to $201 million, reflecting stronger rental income and lower administrative expenses.
Following the quarter end, Choice Properties completed property dispositions totaling $100 million in proceeds.
Source Link:https://www.weston.ca/
