George Weston Limited Reports a 6.4% Increase in Adjusted EPS(1) and a 118.7% Increase in Basic EPS for the Second Quarter of 2015(2).

TORONTO, July 31, 2015 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended June 20, 2015.

GWL's 2015 Second Quarter Report to Shareholders has been filed with SEDAR and is available at sedar.com and in the Investor Centre section of the Company's website at weston.ca.

"We are pleased with George Weston Limited's performance in the second quarter of 2015. We remain focused on delivering stable long term growth and profitability and creating long term value for shareholders", said W. Galen Weston, Executive Chairman, George Weston Limited.

2015 SECOND QUARTER HIGHLIGHTS                    
(unaudited)
($ millions except where otherwise indicated)
                                   
  12 Weeks Ended           24 Weeks Ended  
       
                     
For the periods ended as indicated     Jun. 20, 2015         Jun. 14, 2014          Change       Jun. 20, 2015
    Jun. 14, 2014     Change
Sales   $ 10,851     $ 10,598     2.4%     $ 21,260     $ 18,210     16.7%
EBITDA(1)   $ 811     $ (42)     2,031.0%     $ 1,718     $ 547     214.1%
Adjusted EBITDA(1)   $ 913     $ 859     6.3%     $ 1,763     $ 1,407     25.3%
Adjusted EBITDA margin(1)  
8.4%    
8.1%           8.3%    
7.7%        
Operating income (loss)   $ 423     $ (442)     195.7%     $ 942     $ (64)     1,571.9%
Adjusted operating income(1)   $ 649     $ 584     11.1%     $ 1,235     $ 921     34.1%
Adjusted operating margin(1)  
6.0%    
5.5%           5.8%    
5.1%      
Net earnings (loss) attributable to shareholders of the Company   $ 51     $ (208)     124.5%     $ 218     $ (88)     347.7%
Adjusted net earnings attributable to shareholders of the Company(1)   $ 180     $ 169     6.5%     $ 342     $ 293     16.7%
Basic net earnings (loss) per common share ($)   $ 0.32     $ (1.71)     118.7%     $ 1.55     $ (0.85)     282.4%
Adjusted basic net earnings per common share(1) ($)   $ 1.33     $ 1.25     6.4%     $ 2.52     $ 2.14     17.8%
                                           
                                         

Pavi Binning, President, George Weston Limited, commented that "In the second quarter, Loblaw continued to execute against its strategic framework, delivering solid results in both food and drug retail. Weston Foods delivered sales growth and results in line with expectations which reflected the impact of increased capital and incremental investments in targeted areas".

CONSOLIDATED RESULTS OF OPERATIONS
GWL's second quarter 2015 adjusted basic net earnings per common share(1) increased to $1.33 from $1.25 in the same period in 2014. The increase of $0.08 was primarily due to an improvement in operating performance at Loblaw Companies Limited ("Loblaw"), partially offset by a decline in operating performance at Weston Foods.

Basic net earnings per common share increased by $2.03 to $0.32 compared to the same period in 2014, and included the favourable year-over-year impact of the following significant prior year inventory items:

  • a charge incurred in the second quarter of 2014 of $622 million ($1.63 per common share) related to the fair value increment on the acquired inventory sold associated with the acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart"); and
  • a charge incurred in the second quarter of 2014 of $190 million ($0.49 per common share) related to inventory measurement and other conversion differences associated with the implementation of a perpetual inventory system at Loblaw.


For a complete list of items that impacted basic net earnings per common share but that are excluded from adjusted basic net earnings per common share(1), see the "Non-GAAP Financial Measures" section of this News Release.

REPORTABLE OPERATING SEGMENTS

                                     
Weston Foods Segment Results                                    
(unaudited)   12 Weeks Ended
        24 Weeks Ended
       
($ millions except where otherwise indicated)                                    
For the periods ended as indicated     Jun. 20, 2015
    Jun. 14, 2014
         Change       Jun. 20, 2015  
    Jun. 14, 2014          Change    
Sales   $ 464     $ 431   7.7%      $ 968     $ 880   10.0%  
EBITDA(1)   $ 57     $ 61   (6.6)%     $ 116     $ 138   (15.9)%  
Adjusted EBITDA(1)   $ 58     $ 67   (13.4)%     $ 121     $ 135   (10.4)%  
Adjusted EBITDA margin(1)     12.5%
      15.5%
          12.5%
      15.3%  
     
Operating income   $ 38     $ 45   (15.6)%     $ 79     $ 106   (25.5)%  
Adjusted operating income(1)   $ 39     $ 51   (23.5)%      $ 84     $ 103   (18.4)%  
Adjusted operating margin(1)     8.4%
      11.8%
          8.7%
      11.7%
       
                                                             
                                       

Sales  Weston Foods sales in the second quarter of 2015 were $464 million, an increase of $33 million, or 7.7% compared to the same period in 2014. Foreign currency translation positively impacted sales by approximately 5.7%. Excluding the impact of foreign currency translation, sales increased by 2.0% primarily due to the combined positive impact of pricing and changes in sales mix, as volumes remained relatively flat. Volumes in the second quarter of 2015 were negatively impacted by the timing of Easter.

EBITDA(1)  Weston Foods EBITDA(1) in the second quarter of 2015 was $57 million, a decrease of $4 million compared to the same period in 2014, primarily due to a decline in underlying operating performance, partially offset by the favourable year-over-year impacts of restructuring and other charges and the fair value adjustment of commodity derivatives.

Adjusted EBITDA(1) in the second quarter of 2015 was $58 million, a decrease of $9 million compared to the same period in 2014. The decline in adjusted EBITDA(1) was primarily due to new plant costs, investments in capabilities and innovation and higher input costs, partially offset by higher pricing.

Operating Income  Weston Foods operating income in the second quarter of 2015 was $38 million, a decrease of $7 million compared to the same period in 2014. Adjusted operating income(1) in the second quarter of 2015 was $39 million, a decrease of $12 million compared to the same period in 2014.

In addition to the factors described above impacting EBITDA(1) and adjusted EBITDA(1), the decline in both operating income and adjusted operating income(1) was also driven by an increase in depreciation and amortization of $3 million in the second quarter of 2015 due to investments in capital.

                                 
Loblaw Segment Results                                
(unaudited)   12 Weeks Ended
      24 Weeks Ended
     
($ millions except where otherwise indicated)                                          
For the periods ended as indicated     Jun. 20, 2015
      Jun. 14, 2014        Change       Jun. 20, 2015        Jun. 14, 2014     Change  
Sales   $ 10,535     $ 10,307   2.2%     $  20,583     $ 17,599     17.0 %  
Retail gross profit   $ 2,711     $ 1,840   47.3%     $  5,335     $ 3,443     55.0 %  
EBITDA(1)   $ 780     $ (74)   1,154.1%     $  1,562     $ 395     295.4 %  
Adjusted EBITDA(1)   $ 855     $ 792   8.0%     $  1,642     $ 1,272     29.1 %  
Adjusted EBITDA margin(1)     8.1%       7.7%
          8.0%
      7.2%
           
Operating income (loss)   $ 411     $ (458)   189.7%     $  823     $ (184)     547.3 %  
Adjusted operating income(1)   $ 610     $ 533   14.4%     $  1,151     $ 818     40.7 %  
Adjusted operating margin(1)  
5.8%       5.2%
          5.6%
      4.6%
         
                                     
                                     

Sales  Loblaw sales in the second quarter of 2015 were $10,535 million, an increase of $228 million compared to the same period in 2014, primarily driven by Retail sales. Retail sales increased by $221 million or 2.2% compared to the same period in 2014 and included food retail (Loblaw) sales of $7,629 million and drug retail (Shoppers Drug Mart) sales of $2,689 million, representing increases of $141 million, or 1.9% and $80 million, or 3.1%, respectively. Food retail same-store sales growth was 2.1% (2014 - 1.8%) and the food retail average quarterly internal food price index was higher than (2014 - in line with) the average quarterly national food price inflation of 3.9% (2014 - 2.5%) as measured by the Consumer Price Index for Food Purchased from Stores(5). Drug retail same-store sales growth was 3.8% (2014 - 2.5%).

In the last twelve months, there was no change to Retail net square footage. Excluding the divestitures required pursuant to a Consent Agreement with the Competition Bureau, net square footage increased by 0.3 million square feet, or 0.4%.

In 2014, Loblaw restructured its fee arrangements with the franchisees of certain franchise banners. The revised arrangements are expected to result in an annual reduction of Retail sales and gross profit of approximately $150 million, with a corresponding decrease in selling, general and administrative expenses ("SG&A"). In the second quarter of 2015, this restructuring had a negative impact of $33 million to Retail sales and gross profit with an offsetting positive impact to SG&A.

Retail Gross Profit  Loblaw Retail gross profit in the second quarter of 2015 was $2,711 million, an increase of $871 million compared to the same period in 2014. The increase in Retail gross profit was driven by higher sales, as described above, an increase in Retail gross profit percentage and included the favourable year-over-year net impact of the following:

  • the prior year charge of $622 million related to the recognition of the fair value increment on the acquired Shoppers Drug Mart inventory sold;
  • the prior year charge of $190 million related to inventory measurement and other conversion differences associated with the implementation of a perpetual inventory system at Loblaw; partially offset by
  • a charge of $8 million related to apparel inventory in the second quarter of 2015.

Excluding the favourable year-over-year net impact of the items noted above, Retail gross profit increased by $67 million to $2,719 million compared to the same period in 2014, driven by higher sales and an increase in Retail gross profit percentage of 10 basis points to 26.4%. The increase in Retail gross profit percentage included a 30 basis point negative impact from the restructuring of certain franchise fee arrangements, as described above. After excluding this negative impact, Retail gross profit percentage was 26.7% compared to 26.3% in 2014. The increase was primarily driven by the achievement of operational synergies.

EBITDA(1)  Loblaw EBITDA(1) in the second quarter of 2015 was $780 million, an increase of $854 million compared to the same period in 2014, primarily driven by an improvement in underlying operating performance and the favourable year-over-year impact of the prior year inventory items previously described.

Loblaw adjusted EBITDA(1) in the second quarter of 2015 was $855 million, an increase of $63 million compared to the same period in 2014, driven by an increase in Retail gross profit (excluding the prior year inventory items previously described), partially offset by an increase in Retail SG&A which included the positive impact of the restructuring of certain franchise fee arrangements. Excluding this positive impact, Retail SG&A increased by $35 million compared to the same period in 2014 and SG&A percentage was flat. The increase in SG&A was due to higher store and store support costs, primarily driven by higher sales volumes and the impact of franchise consolidation. These costs were partially offset by lower charges related to the transition of certain food retail stores to more cost effective and efficient operating terms under collective agreements, efficiencies achieved in food retail supply chain, administration and information technology ("IT"), and positive changes in the value of Loblaw's investments in its franchise business.

Operating Income  Loblaw operating income in the second quarter of 2015 was $411 million, an increase of $869 million compared to the same period in 2014. Loblaw adjusted operating income(1) in the second quarter of 2015 was $610 million, an increase of $77 million compared to the same period in 2014.

In addition to the factors described above impacting EBITDA(1) and adjusted EBITDA(1), the increase in both operating income and adjusted operating income(1) in the second quarter of 2015 included a decrease in Retail depreciation and amortization of $14 million. The decrease in Retail depreciation and amortization was driven by the change in the estimated useful life of certain IT systems, as disclosed in the first quarter of 2015, as well as lower IT and supply chain depreciation.

NET INTEREST EXPENSE AND OTHER FINANCING CHARGES
In the second quarter of 2015, net interest expense and other financing charges decreased by $19 million to $140 million compared to the same period in 2014. The decrease was primarily due to the favourable year-over-year impacts of the fair value adjustment of the Trust Unit Liability and the accelerated amortization of deferred financing charges, partially offset by the unfavourable year-over-year impact of the fair value adjustment of the forward sale agreement for 9.6 million Loblaw common shares.

Adjusted net interest expense and other financing charges(1) were $140 million, an increase of $4 million compared to the same period in 2014. The increase was primarily driven by higher interest on long term debt, as a result of debt issuances by Choice Properties to third parties and GWL's issuance of a $200 million medium term note, and the timing of the distributions declared by Choice Properties Real Estate Investment Trust ("Choice Properties") on its Trust Units relative to the Company's reporting period. This increase was partially offset by a reduction in interest on long term debt as a result of repayments on Loblaw's unsecured term loan facility, which was obtained in connection with the acquisition of Shoppers Drug Mart ("Acquisition Term Loan").

INCOME TAXES
In the second quarter of 2015, the government of Alberta announced an increase to the provincial corporate income tax rate from 10% to 12%. The increase was effective July 1, 2015, but was enacted on June 19, 2015. As a result, the Company recorded a charge of $45 million related to the re-measurement of deferred tax liabilities.

Income tax expense for the second quarter of 2015 was $129 million and the effective tax rate was 45.6%. Income tax recovered for the second quarter of 2014 was $145 million and the effective tax rate was 24.1%. The increase in the effective tax rate was primarily attributable to the increase in deferred tax expense as a result of the increase in the Alberta statutory corporate income tax rate, as described above.

Adjusted income tax expense(1) for the second quarter of 2015 was $138 million and the adjusted income tax rate(1) was 27.1%. Adjusted income tax expense(1) for the second quarter of 2014 was $117 million and the adjusted income tax rate(1) was 26.1%. The current tax impact of the increase in the Alberta statutory corporate income tax rate on the adjusted income tax expense(1) was partially offset by a decrease in certain non-deductible items.

ADJUSTED DEBT(1)
During the second quarter of 2015, adjusted debt(1) decreased by $309 million from the first quarter of 2015, primarily driven by net repayments on Loblaw's unsecured term loan facilities, partially offset by net borrowings on Choice Properties' senior unsecured committed credit facility. The Company's adjusted debt(1) to rolling year adjusted EBITDA(1) was 2.9x in the second quarter of 2015 compared to 4.4x in the same period in 2014.

Loblaw has decreased its adjusted debt(1) balance by $1,345 million since its acquisition of Shoppers Drug Mart, leaving only $355 million of further reduction to achieve its debt target.

SYNERGIES
In the second quarter of 2015, Loblaw realized net synergies of approximately $53 million (2014 - $8 million), generated primarily from improved cost of inventories sold and purchasing efficiencies in goods not for resale.

Total net synergies achieved since the closing of the acquisition were $198 million. Loblaw expects to achieve annualized synergies of $300 million (net of related costs) in the third year following the close of the acquisition of Shoppers Drug Mart.

OUTLOOK(2)

The outlook reflects the underlying operating performance of the Company's operating segments as discussed below.

For full year 2015, Weston Foods expects a decline in adjusted operating income(1) due to the costs associated with capital investments, incremental investments in innovation and capabilities and higher input costs. This decline will be partially offset by the positive impact of pricing, volume growth and productivity improvements. On an equivalent 52-week basis, management continues to expect the decline in adjusted operating income(1) to be greater in the first half of the year than in the second half, primarily driven by performance in the fourth quarter.

Loblaw's strategic framework is focused on delivering the best in food, best in health and beauty, operational excellence and growth. This strategic framework is supported by a financial strategy of maintaining a stable trading environment that targets positive same-store sales and stable gross margin; surfacing efficiencies; delivering synergies as a result of its acquisition of Shoppers Drug Mart; and deleveraging the balance sheet. Consistent with its previous outlook, on a full year comparative basis reflecting 2014 financial results for Loblaw and Shoppers Drug Mart, in 2015 Loblaw expects to:

  • maintain positive same-store sales and stable gross margin (excluding synergies) in Retail;
  • achieve net synergies as a result of the acquisition of Shoppers Drug Mart slightly exceeding $200 million;
  • continue to drive net efficiencies across the food retail business by achieving reductions in supply chain, administrative functions and IT, while still investing in key areas, like eCommerce;
  • grow adjusted operating income(1) in its food retail business, excluding synergies, and experience a decline in adjusted operating income(1) in its drug retail business, excluding synergies, as a result of investments in key projects and other factors;
  • grow consolidated adjusted net earnings available to common shareholders(1) (including synergies) relative to 2014, however not at the same level achieved in the first half of 2015;
  • invest approximately $1,200 million in capital expenditures; and
  • achieve its deleveraging target in 2015.

Loblaw's expectations for 2015 also include the following:

  • competitive intensity expected to remain high, but relatively stable as industry square footage growth in supermarket-type merchandise moderates; and
  • continued pressure in our drug retail business from the ongoing impact of healthcare reform.

DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the second quarter of 2015, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows:

        Common Shares           $0.425 per share payable October 1, 2015, to
shareholders of record September 15, 2015;
 
                       
        Preferred Shares, Series I           $0.3625 per share payable September 15, 2015, to
shareholders of record August 31, 2015;
 
                       
        Preferred Shares, Series III           $0.3250 per share payable October 1, 2015, to
shareholders of record September 15, 2015;
 
                       
        Preferred Shares, Series IV           $0.3250 per share payable October 1, 2015, to
shareholders of record September 15, 2015; and
 
                       
        Preferred Shares, Series V           $0.296875 per share payable October 1, 2015, to
shareholders of record September 15, 2015.
 
                       

FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects and opportunities. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, synergies and other benefits associated with the acquisition of Shoppers Drug Mart, debt reduction targets, and planned capital investments. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Outlook" section of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "on-track", "maintain", "achieve", "grow", and "should" and similar expressions, as they relate to the Company and its management.

Forward-looking statements reflect the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's expectation of operating and financial performance in 2015 is based on certain assumptions including assumptions about sales and volume growth, anticipated cost savings, operating efficiencies, and continued growth from current initiatives. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the "Enterprise Risks and Risk Management" section of the Management's Discussion and Analysis ("MD&A") in the Company's 2014 Annual Report, the "Enterprise Risks and Risk Management" section of the MD&A included in the Company's 2015 Second Quarter Report to Shareholders and the Company's Annual Information Form ("AIF") for the year ended December 31, 2014. Such risks and uncertainties include:

  • failure by Loblaw to realize the anticipated strategic benefits or operational, competitive and cost synergies following the acquisition of Shoppers Drug Mart;
  • failure by Loblaw to reduce indebtedness associated with the acquisition of Shoppers Drug Mart to bring leverage ratios to a level consistent with investment grade ratings;
  • failure to realize benefits from investments in the Company's IT systems, including the Company's IT systems implementation, or unanticipated results from these initiatives;
  • failure to realize anticipated results, including revenue growth, anticipated cost savings or operating efficiencies from the Company's major initiatives, including those from restructuring;
  • the inability of the Company's IT infrastructure to support the requirements of the Company's business;
  • changes in Loblaw's estimate of inventory cost as a result of its IT system upgrade;
  • changes to the regulation of generic prescription drug prices and the reduction of reimbursements under public drug benefit plans and the elimination or reduction of professional allowances paid by drug manufacturers;
  • failure to achieve desired results in labour negotiations, including the terms of future collective bargaining agreements which could lead to work stoppages;
  • heightened competition, whether from current competitors or new entrants to the marketplace;
  • changes in economic conditions, including the rate of inflation or deflation, changes in interest and currency exchange rates and derivative and commodity prices;
  • changes in the Company's income, capital, commodity, property and other tax and regulatory liabilities including changes in tax laws, regulations or future assessments;
  • the risk that the Company will be unsuccessful in any material litigation, class action, or regulatory proceeding;
  • the inability of the Company to manage inventory to minimize the impact of obsolete or excess inventory and to control shrink;
  • the risk that the Company would experience a financial loss if its counterparties fail to meet their obligations in accordance with the terms and conditions of their contracts with the Company; and
  • the inability of Loblaw to collect on and fund its credit card receivables.

This is not an exhaustive list of the factors that may affect the Company's forward-looking statements. Other risks and uncertainties not presently known to the Company or that the Company presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including without limitation, the section entitled "Operating and Financial Risks and Risk Management" in the Company's AIF for the year ended December 31, 2014. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES
The Company uses the following non-GAAP financial measures: EBITDA, adjusted EBITDA and adjusted EBITDA margin, adjusted operating income and adjusted operating margin, adjusted net earnings attributable to shareholders of the Company, adjusted basic net earnings per common share, adjusted debt and adjusted debt to rolling year adjusted EBITDA. In addition to these items, the following measures are used by management in calculating adjusted basic net earnings per common share: adjusted net interest expense and other financing charges, adjusted income taxes, adjusted income tax rate and adjusted net earnings available to common shareholders of the Company. The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance of the Company for the reasons outlined below.

Management uses these and other non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing consolidated and segment underlying operating performance. The excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.

These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and they should not be construed as an alternative to other financial measures determined in accordance with GAAP.

EBITDA, Adjusted EBITDA and Adjusted Operating Income  The Company believes adjusted EBITDA is useful in assessing the underlying operating performance of the Company's ongoing operations and in assessing the Company's ability to generate cash flows to fund its cash requirements, including its capital investment program and debt reduction objectives. The Company believes adjusted operating income is also useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business.

The following table reconciles EBITDA, adjusted EBITDA and adjusted operating income to operating income (loss), which is reconciled to GAAP net earnings (loss) attributable to shareholders of the Company reported for the periods ended as indicated.

    12 Weeks Ended
 
                     
        Jun. 20, 2015
        Jun. 14, 2014
 
(unaudited)
($ millions)
  Weston
Foods
Loblaw
Other(i)
Consolidated
    Weston
Foods
Loblaw
Other(i)
Consolidated
 
Net earnings (loss) attributable to shareholders                                
  of the Company         $ 51             $ (208)    
Add impact of the following:                        
  Non-controlling interests         103
            (248)    
  Income taxes         129
            (145)    
  Net interest expense and other                            
      financing charges         140
            159
   
Operating income (loss)   $ 38   $ 411   $ (26) $ 423       $ 45   $ (458)   $ (29)   $ (442)    
Depreciation and amortization   19
  369
    388
      16
  384
    400
   
EBITDA   $ 57   $ 780   $ (26) $ 811       $ 61   $ (74)   $ (29)   $ (42)    
                                                           
Operating income (loss)   $ 38   $ 411   $ (26) $ 423       $ 45   $ (458)   $ (29)   $ (442)    
Add impact of the following:                        
  Amortization of intangible assets acquired                                
      with Shoppers Drug Mart     124
    124
        125
    125
   
  Restructuring and other charges     54
    54
      3
      3
   
  Fixed asset and other related impairments,                                
      net of recoveries     4
    4
        2
    2
   
  Charge related to apparel inventory     8
    8
               
  Fair value adjustment of derivatives   1
  9
    10
      3
      3
   
  Shoppers Drug Mart acquisition costs                 52
    52
   
  Recognition of fair value increment on                            
      inventory sold                 622
    622
   
  Charge related to inventory measurement                                                        
      and other conversion differences                 190
    190
   
  Foreign currency translation       26
26
          29
  29
   
Adjusted operating income   $ 39   $ 610     $ 649       $ 51   $ 533     $ 584    
Depreciation and amortization excluding the                                  
  impact of the above adjustments(ii)   19
  245
    264
      16
  259
    275
   
Adjusted EBITDA   $ 58   $ 855     $ 913       $ 67   $ 792     $ 859    
                           

(i)  Represents the effect of foreign currency translation on a portion of the United States ("U.S.") dollar denominated cash and cash
equivalents and short term investments held by foreign operations.
(ii)  Depreciation and amortization for the calculation of adjusted EBITDA at Loblaw excludes $124 million (2014 - $125 million) of
amortization of intangible assets acquired with Shoppers Drug Mart.

    24 Weeks Ended
 
                     
        Jun. 20, 2015
        Jun. 14, 2014
 
(unaudited)
($ millions)
  Weston
Foods
Loblaw
Other(i)
Consolidated
    Weston
Foods
Loblaw
Other(i)
Consolidated
 
Net earnings (loss) attributable to shareholders                                
  of the Company         $ 218             $ (88)    
Add impact of the following:                        
  Non-controlling interests         182
            (204)    
  Income taxes         225
            (99)    
  Net interest expense and other                            
      financing charges           317
            327
   
Operating income (loss)   $ 79   $ 823   $ 40 $ 942       $ 106   $ (184)   $ 14   $ (64)    
Depreciation and amortization   37
  739
    776
      32
  579
    611
   
EBITDA   $ 116   $ 1,562   $ 40 $ 1,718       $ 138   $ 395   $ 14   $ 547    
                                                           
Operating income (loss)   $ 79   $ 823   $ 40 $ 942       $ 106   $ (184)   $ 14   $ (64)    
Add impact of the following:                        
  Amortization of intangible assets acquired                                
      with Shoppers Drug Mart     248
    248
        125
    125
   
  Restructuring and other charges     4   66
    70
      3
      3
   
  Fixed asset and other related impairments,                                
      net of recoveries     7
    7
        5
    5
   
  Charge related to apparel inventory     8
    8
               
  Fair value adjustment of derivatives  
  (3)
    (3)
      (6)
      (6)
   
  Shoppers Drug Mart divestitures loss and                
   
   
      acquisition costs           2           2         60     60    
  Inventory loss     1                 1        
  Recognition of fair value increment on                            
      inventory sold                 622
    622
   
  Charge related to inventory measurement                                                        
      and other conversion differences                 190
    190
   
  Foreign currency translation       (40)
(40)
          (14)
  (14)
   
Adjusted operating income   $ 84   $ 1,151     $ 1,235       $ 103   $ 818     $ 921    
Depreciation and amortization excluding the                                  
  impact of the above adjustments(ii)   37
  491
    528
      32
  454
    486
   
Adjusted EBITDA   $ 121   $ 1,642     $ 1,763       $ 135   $ 1,272     $ 1,407    
                               
                                                         
(i)   Represents the effect of foreign currency translation on a portion of the U.S. dollar denominated cash and cash equivalents and short
term investments held by foreign operations.
(ii)  Depreciation and amortization for the calculation of adjusted EBITDA at Loblaw excludes $248 million (2014 - $125 million) of
amortization of intangible assets acquired with Shoppers Drug Mart.

The following items impacted operating income in the second quarters of 2015 and 2014:

Amortization of intangible assets acquired with Shoppers Drug Mart The acquisition of Shoppers Drug Mart in the second quarter of 2014 included approximately $6 billion of definite life intangible assets, which are being amortized over their estimated useful lives. In the second quarter of 2015, $124 million (2014 - $125 million) of amortization was recognized in operating income. Loblaw expects to recognize annual amortization of approximately $550 million associated with the acquired intangible assets over the next nine years and decreasing thereafter.

Restructuring and other charges  The Company continuously evaluates strategic and cost reduction initiatives related to its store infrastructure, manufacturing assets, distribution networks and administrative infrastructure with the objective of ensuring a low cost operating structure. Restructuring activities related to these initiatives are ongoing. In the second quarter of 2015, Loblaw recorded $54 million (2014 - nil) of restructuring and other charges. Of this amount, $45 million related to a restructuring plan to close 52 unprofitable retail locations across a range of banners and formats, which included $30 million for severance and lease termination costs and $15 million for asset impairments associated with these retail locations. The additional $9 million of restructuring charges was related to store support restructuring activities.

Fixed asset and other related impairments, net of recoveries  At each balance sheet date, the Company assesses and, when required, records impairments and recoveries of previous impairments related to the carrying value of its fixed assets, investment properties and intangible assets. In the second quarter of 2015, Loblaw recorded a net charge of $4 million (2014 - $2 million) related to fixed assets and other related impairments.

Charge related to apparel inventory  In the second quarter of 2015, Loblaw entered into an agreement to liquidate certain older Canadian apparel inventory in the U.S., and recorded a charge of $8 million (2014 - nil).

Fair value adjustment of derivatives  The Company is exposed to commodity price and U.S. dollar exchange rate fluctuations primarily as a result of purchases of certain raw materials, fuels and utilities. In accordance with the Company's commodity risk management policy, the Company enters into commodity and foreign currency derivatives to reduce the impact of price fluctuations in forecasted raw material and fuel purchases over a specified period of time. These derivatives are not acquired for trading or speculative purposes. Pursuant to the Company's derivative instruments accounting policy, certain changes in fair value, which include realized and unrealized gains and losses related to future purchases of raw materials and fuel, are recorded in operating income. In the second quarter of 2015, Weston Foods recorded a charge of $1 million (2014 - $3 million), and Loblaw recorded a charge of $9 million (2014 - nil) related to the fair value adjustment of commodity and foreign currency derivatives. Despite the impact of accounting for these commodity and foreign currency derivatives on the Company's reported results, the derivatives have the economic impact of largely mitigating the associated risks arising from price and exchange rate fluctuations in the underlying commodities.

Shoppers Drug Mart acquisition costs In the second quarter of 2014, Loblaw incurred $52 million of acquisition-related costs.

Recognition of the fair value increment on inventory sold  In connection with the acquisition of Shoppers Drug Mart, acquired assets and liabilities were recorded on the Company's consolidated balance sheet at their fair value. This resulted in a fair value adjustment to Shoppers Drug Mart inventory on the date of acquisition of $798 million representing the difference between inventory cost and its fair value. In the second quarter of 2014, $622 million was recognized in gross profit and operating income.

Charge related to inventory measurement and other conversion differences  As of the end of 2014, Loblaw had completed the conversion of substantially all of its corporate grocery locations and associated distribution centres to the new IT systems. The implementation of a perpetual inventory system, combined with visibility to integrated costing information provided by the new IT systems, enabled Loblaw to estimate the cost of inventory using a more precise system-generated average cost. This impact was estimated to be a decrease of $190 million in the value of the inventory, which was recognized in gross profit and operating income in the second quarter of 2014. Loblaw is undertaking the conversion of its remaining grocery locations during 2015 and additional impacts may result. In 2015, no additional cost has been recognized in gross profit and operating income.

Foreign currency translation The Company's consolidated financial statements are expressed in Canadian dollars. A portion of the Company's (excluding Loblaw's) net assets are denominated in U.S. dollars and as a result, the Company is exposed to foreign currency translation gains and losses. The impact of foreign currency translation on a portion of the U.S. dollar denominated net assets, primarily cash and cash equivalents and short term investments held by foreign operations, is recorded in operating income and the associated tax, if any, is recorded in income taxes. In the second quarter of 2015, a foreign currency translation loss of $26 million (2014 - $29 million) was recorded in operating income as a result of the depreciation of the U.S. dollar relative to the Canadian dollar. An income tax recovery of $3 million (2014 - nil) was also recorded associated with this foreign currency translation loss.

Adjusted Net Interest Expense and Other Financing Charges The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company.

The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated.

    12 Weeks Ended
    24 Weeks Ended
 
(unaudited)                        
($ millions) Jun. 20, 2015   Jun. 14, 2014   Jun. 20, 2015   Jun. 14, 2014  
Net interest expense and other financing charges  $   140     159   $    317    $   327  
Less: Fair value adjustment of the Trust Unit liability   (22)     6
    17
    14   
  Fair value adjustment of the forward sale agreement                        
    for 9.6 million Loblaw common shares   14
    3
    11
    52
 
  Accelerated amortization of deferred financing costs   8
    14
    11
    14
 
  Shoppers Drug Mart net financing charges                     15
 
Adjusted net interest expense and other financing charges $   140     136    $   278    $   232  
                           

In addition to certain items described in the "EBITDA, Adjusted EBITDA and Adjusted Operating Income" section above, the following items impacted net interest expense and other financing charges in the second quarters of 2015 and 2014:

Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by unitholders other than the Company. These Trust Units are presented as a liability on the Company's consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting period based on the market price of Trust Units at the end of each period. In the second quarter of 2015, the Company recorded a gain of $22 million (2014 - loss of $6 million) in net interest expense and other financing charges related to the fair value adjustment of the Trust Unit liability as a result of the changes in the market price of Trust Units. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges.

Fair value adjustment of the forward sale agreement for 9.6 million Loblaw common shares  The fair value adjustment of the forward sale agreement for 9.6 million Loblaw common shares is non-cash and is included in net interest expense and other financing charges. The adjustment is determined by changes in the value of the underlying Loblaw common shares. In the second quarter of 2015, a charge of $14 million (2014 - $3 million) was recorded in net interest expense and other financing charges as a result of the changes in the market price of Loblaw common shares. An increase (decrease) in the market price of Loblaw common shares results in a charge (income) to net interest expense and other financing charges.

Accelerated amortization of deferred financing costs  In the second quarter of 2015, Loblaw recorded a charge of $8 million (2014 - $14 million) related to the accelerated amortization of deferred financing costs due to the repayment of $662 million (2014 - $1.6 billion) of its Acquisition Term Loan.

Adjusted Income Taxes and Adjusted Income Tax Rate The Company believes the adjusted income tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business.

The following table reconciles the effective income tax rate applicable to adjusted earnings before taxes to the GAAP effective income tax rate applicable to earnings before taxes as reported for the periods ended as indicated.

    12 Weeks Ended
    24 Weeks Ended
 
(unaudited)                   
($ millions except where otherwise indicated)         Jun. 20, 2015         Jun. 14, 2014         Jun. 20, 2015         Jun. 14, 2014
Adjusted operating income(i)   $ 649     $ 584     $ 1,235     $ 921  
Adjusted net interest expense and other                                                
  financing charges(i)   140
    136
    278
    232
 
Adjusted earnings before taxes   $ 509     $ 448     $ 957     $ 689  
Income taxes   $ 129     $ (145)     $ 225     $ (99)  
Less:  Tax impact of items excluded from adjusted                                                
       earnings before taxes(ii)   (54)     (262)     (80)     (277)  
    Provincial income tax rate change   45         45
     
Adjusted income taxes   $ 138     $ 117     $ 260     $ 178  
Effective income tax rate applicable to earnings                                                
  before taxes   45.6%     24.1%     36.0%     25.3%  
Adjusted income tax rate applicable to adjusted                                                
  earnings before taxes   27.1%     26.1%     27.2%     25.8%  
                         

(i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above.
(ii)  See the EBITDA, adjusted EBITDA and adjusted operating income table and the adjusted net interest expense and other financing
charges table above for a complete list of items excluded from adjusted earnings before taxes.

In addition to certain items described in the "EBITDA, Adjusted EBITDA and Adjusted Operating Income" and "Adjusted Net Interest Expense and Other Financing Charges" sections above, the following item impacted income taxes and the effective income tax rate in the second quarter of 2015:

Provincial income tax rate change  In the second quarter of 2015, the government of Alberta announced an increase to the provincial corporate income tax rate from 10% to 12%. The increase was effective July 1, 2015, but was enacted on June 19, 2015. As a result, the Company recorded a charge of $45 million related to the re-measurement of deferred tax liabilities.

Adjusted Basic Net Earnings per Common Share and Adjusted Net Earnings  The Company believes adjusted basic net earnings per common share and adjusted net earnings are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business.

The following table reconciles adjusted basic net earnings per common share and adjusted net earnings to GAAP basic net earnings (loss) per common share reported for the periods ended as indicated.

    12 Weeks Ended
    24 Weeks Ended
 
(unaudited)                              
($ except where otherwise indicated)     Jun. 20, 2015
    Jun. 14, 2014       Jun. 20, 2015
    Jun. 14, 2014    
Basic net earnings (loss) per common share   $ 0.32       $ (1.71)       $ 1.55       $ (0.85)    
Add impact of the following(i):                        
  Amortization of intangible assets acquired                                
    with Shoppers Drug Mart   0.33
      0.33
      0.65
      0.33
   
  Restructuring and other charges   0.17
      0.02
      0.23
      0.02
   
  Fixed asset and other related impairments,                                
    net of recoveries   0.01
      0.01
      0.02
      0.02
   
  Charge related to apparel inventory   0.02
            0.02
         
  Fair value adjustment of derivatives   0.03
      0.02
      (0.01)
      (0.03)
   
  Shoppers Drug Mart divestitures loss and                                
    acquisition costs         0.16
      0.01
      0.25
   
  Inventory loss               0.01
         
  Recognition of fair value increment on inventory sold         1.63
            1.63
   
  Charge related to inventory measurement and other                                
    conversion differences         0.49
            0.49
   
  Fair value adjustment of the forward sale agreement                                
    for 9.6 million Loblaw common shares   0.08
      0.02
      0.06
      0.31
   
  Fair value adjustment of the Trust Unit liability   (0.02)
      0.01
      0.03
      0.04
   
  Accelerated amortization of deferred financing costs   0.02
      0.04
      0.03
      0.04
   
  Provincial income tax rate change   0.19
            0.19
         
  Foreign currency translation   0.18
      0.23
      (0.27)
      (0.11)
   
Adjusted basic net earnings per common share   $ 1.33       $ 1.25       $ 2.52       $ 2.14    
Weighted average common shares outstanding (millions)   127.7
      127.8
      127.7
      127.7
   
Adjusted net earnings attributable to shareholders of                                        
  the Company ($ millions)   $ 180       $ 169       $ 342       $ 293    
Prescribed dividends on preferred shares in share                                
  capital ($ millions)   10
      10
      20
      20
   
Adjusted net earnings available to common                                        
  shareholders of the Company ($ millions)   $ 170       $ 159       $ 322       $ 273    
                           

(i) Net of income taxes and non-controlling interests, as applicable.

Adjusted Debt  The Company believes adjusted debt is useful in assessing the amount of financial leverage employed by the Company. In the table below, the Company has presented adjusted debt as at March 28, 2014, the date of acquisition of Shoppers Drug Mart, as this is the baseline for the Company's debt reduction target.

The following table reconciles adjusted debt, used in the adjusted debt to rolling year adjusted EBITDA ratio, to GAAP measures reported as at the periods ended as indicated.

    As at
 
(unaudited)                                 
($ millions)   Jun. 20, 2015
      Dec. 31, 2014
      Mar. 28, 2014
      Jun. 14, 2014
   
Bank indebtedness   $ 275       $ 162       $ 295       $ 335    
Short term debt   1,021
      1,101
      1,070
      1,080
   
Long term debt due within one year   1,009
      420
      902
      74
   
Long term debt   11,318
      12,306
      12,327
      12,862
   
Trust Unit liability   513
      494
      487
      493
   
Capital securities   225
      225
      224
      224
   
Certain other liabilities   28
      28
      39
      34
   
Fair value of financial derivatives related to the above debt   (375)
      (367)
      (484)
      (491)
   
Total debt   $ 14,014       $ 14,369       $ 14,860       $ 14,611    
Less: Independent securitization trusts   $ 1,255       $ 1,355       $ 1,355       $ 1,355    
  Trust Unit liability   513
      494
      487
      493
   
  Independent funding trusts   504
      498
      469
      476
   
  Guaranteed Investment Certificates   621
      634
      443
      528
   
Adjusted debt   $ 11,121       $ 11,388       $ 12,106       $ 11,759    
                           

SELECTED FINANCIAL INFORMATION

The following includes selected unaudited quarterly financial information which is prepared by management in accordance with International Financial Reporting Standards ("IFRS") and is based on the Company's 2015 Second Quarter Report to Shareholders. This financial information does not contain all disclosures required by IFRS, and accordingly, this financial information should be read in conjunction with the Company's 2014 Annual Report and 2015 Second Quarter Report to Shareholders available in the Investor Centre section of the Company's website at www.weston.ca.

Condensed Consolidated Statements of Earnings

(unaudited) 12 Weeks Ended   24 Weeks Ended  
(millions of Canadian dollars except                        
  where otherwise indicated) Jun. 20, 2015     Jun. 14, 2014     Jun. 20, 2015     Jun. 14, 2014    
Revenue   $ 10,851       $ 10,598       $ 21,260       $ 18,210    
Operating Expenses                        
  Cost of inventories sold   7,790
      8,422
      15,211
      14,090
   
  Selling, general and administrative expenses   2,638
      2,618
      5,107
      4,184
   
    10,428
      11,040
      20,318
      18,274
   
Operating Income (Loss)   423
      (442)
      942
      (64)
   
Net Interest Expense and
    Other Financing Charges
  140
      159
      317
      327
   
Earnings (Loss) Before Income Taxes   283
      (601)
      625
      (391)
   
Income Taxes   129
      (145)
      225
      (99)
   
Net Earnings (Loss)   154
      (456)
      400
      (292)
   
Attributable to:                        
  Shareholders of the Company   51
      (208)
      218       (88)
   
  Non-Controlling Interests   103
      (248)
      182
      (204)
   
Net Earnings (Loss)   $ 154       $ (456)       $ 400       $ (292)    
Net Earnings (Loss) per Common Share ($)                        
  Basic   $ 0.32       $ (1.71)       $ 1.55       $ (0.85)    
  Diluted   $ 0.31       $ (1.71)       $ 1.53       $ (0.85)    
                         

 
                         

Condensed Consolidated Balance Sheets

(unaudited)                   As at        
(millions of Canadian dollars)       Jun. 20, 2015       Jun. 14, 2014(3)(4)       Dec. 31, 2014(3)(4)
ASSETS                        
Current Assets                        
  Cash and cash equivalents     $ 1,592     $ 1,452     $ 1,333
  Short term investments       1,118       897       1,072
  Accounts receivable       1,330
      1,152
      1,318
  Credit card receivables       2,647
      2,561
      2,630
  Inventories       4,495
      4,428
      4,463
  Income taxes recoverable       45
      58
      30
  Prepaid expenses and other assets       261
      237
      223
  Assets held for sale       24
      44
      23
Total Current Assets       11,512
      10,829
      11,092
Fixed Assets       10,989
      10,824
      10,938
Investment Properties       177
      148
      185
Intangible Assets       9,523
      10,062
      9,786
Goodwill       3,778
      3,734
      3,756
Deferred Income Taxes       172
      336
      215
Security Deposits       90
      187
      92
Franchise Loans Receivable       384
      380
      399
Other Assets       725
      777
      683
Total Assets     $ 37,350     $ 37,277     $ 37,146
LIABILITIES                        
Current Liabilities                        
  Bank indebtedness     $ 275     $ 335     $ 162
  Trade payables and other liabilities       5,086
      4,829
      4,934
  Provisions       119
      109
      130
  Short term debt       1,021
      1,080
      1,101
  Long term debt due within one year       1,009
      74
      420
  Associate interest       184
      170
      193
  Capital securities       225
              225
Total Current Liabilities       7,919
      6,597
      7,165
Provisions       114
      88
      103
Long Term Debt       11,318
      12,862
      12,306
Trust Unit Liability       513
      493
      494
Deferred Income Taxes       1,990
      2,148
      1,980
Other Liabilities       877
      831
      849
Capital Securities               224
       
Total Liabilities       22,731
      23,243
      22,897
EQUITY                        
Share Capital       1,000
      988
      997
Contributed Surplus       67
      77
      80
Retained Earnings       6,206
      6,085
      6,125
Accumulated Other Comprehensive Income       117
      27
      87
Total Equity Attributable to Shareholders of the Company       7,390
      7,177
      7,289
Non-Controlling Interests       7,229
      6,857
      6,960
Total Equity       14,619
      14,034
      14,249
Total Liabilities and Equity     $ 37,350     $ 37,277     $ 37,146
                         

Condensed Consolidated Statements of Cash Flows

(unaudited)     12 Weeks Ended       24 Weeks Ended
(millions of Canadian dollars)     Jun. 20, 2015       Jun. 14, 2014(3)       Jun. 20, 2015       Jun. 14, 2014(3)
Operating Activities                              
  Net earnings (loss)   $ 154     $ (456)     $ 400     $ (292)
  Income taxes     129
      (145)
      225
      (99)
  Net interest expense and other financing
    charges
    140
      159
      317
      327
  Depreciation and amortization     388
      400
      776
      611
  Recognition of fair value increment on
    inventory sold
            622
              622
  Charge related to inventory measurement and
    other conversion differences
            190
              190
  Foreign currency translation loss (gain)     26
      29
      (40)
      (14)
  Change in credit card receivables     (169)
      (162)
      (17)
      (23)
  Change in non-cash working capital     344
      395
      (17)
      (225)
  Income taxes paid     (46)
      (97)
      (183)
      (180)
  Interest received     2
      14
      5
      25
  Other     66
      64
      85
      73
Cash Flows from Operating Activities     1,034
      1,013
      1,551
      1,015
Investing Activities                              
  Acquisition of Shoppers Drug Mart
    Corporation, net of cash acquired
            (6,619)
              (6,619)
  Fixed asset purchases     (231)
      (227)
      (475)
      (344)
  Change in short term investments     (93)
      (15)
      (8)
      605
  Change in franchise investments and other
    receivables
    (22)
      (19)
      (9)
      (13)
  Change in security deposits     3
      1,601
      4
      1,605
  Intangible asset additions     (43)
      (38)
      (70)
      (51)
  Other     9
      (13)
      (36)
      (3)
Cash Flows used in Investing Activities     (377)
      (5,330)
      (594)
      (4,820)
Financing Activities                              
  Change in bank indebtedness     (24)
      40
      113
      40
  Change in Associate interest     (3)
      (4)
      (9)
      (4)
  Change in short term debt     10
      10
      (80)
      20
  Long term debt  - Issued, net of financing charges     259
      5,136
      514
      5,605
    - Retired     (612)
      (2,474)
      (968)
      (2,800)
  Share capital  - Issued     2
      14
      2
      14
    - Purchased and held in trusts     (4)
              (4)
       
    - Purchased and cancelled                     (1)
       
  Loblaw common share capital  - Issued     14
      54
      28
      64
    - Purchased and held in trusts     (11)
              (35)
       
    - Purchased and cancelled     (38)
      (59)
      (55)
      (59)
  Loblaw preferred share capital  - Issued     221
              221
       
  Interest paid     (145)
      (119)
      (310)
      (267)
  Dividends  - To common shareholders     (54)
      (53)
      (54)
      (106)
    - To preferred shareholders     (11)
      (8)
      (14)
      (19)
    - To minority shareholders     (55)
      (83)
      (55)
      (108)
Cash Flows (used in) from Financing Activities     (451)
      2,454
      (707)
      2,380
Effect of foreign currency exchange rate changes
       on cash and cash equivalents
    (7)
      (6)
      9
      8
Change in Cash and Cash Equivalents     199
      (1,869)
      259
      (1,417)
Cash and Cash Equivalents, Beginning of Period     1,393
      3,321
      1,333
      2,869
Cash and Cash Equivalents, End of Period   $ 1,592     $ 1,452     $ 1,592     $ 1,452
                               

2015 SECOND QUARTER REPORT TO SHAREHOLDERS
The Company's 2014 Annual Report and 2015 Second Quarter Report to Shareholders are available in the Investor Centre section of the Company's website at www.weston.ca and have been filed with SEDAR and are available online at www.sedar.com.

INVESTOR RELATIONS
Shareholders, security analysts and investment professionals should direct their requests to Mr. Geoffrey H. Wilson, Senior Vice President, Investor Relations, Business Intelligence and Communications, at the Company's Executive Office or by e-mail at investor@weston.ca.

Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR. This News Release includes selected information on Loblaw Companies Limited, a public company with shares trading on the Toronto Stock Exchange. For information regarding Loblaw, readers should also refer to the materials filed by Loblaw with SEDAR from time to time. These filings are also maintained at Loblaw's corporate website at www.loblaw.ca.

CONFERENCE CALL AND WEBCAST PRESENTATION
George Weston Limited will host a conference call as well as an audio webcast on Friday, July 31, 2015 at 9:00 a.m. (EST). To access via tele-conference, please dial (647) 427-7450. The playback will be available two hours after the event at (416) 849-0833, passcode:  76091741#. To access via audio webcast, please visit the Investor Centre section of www.weston.ca. Pre-registration will be available.

     
Endnotes
     
(1)   See "Non-GAAP Financial Measures" section of this News Release.
(2)   This News Release contains forward-looking information. See Forward-Looking Statements of this News Release for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors, estimates, beliefs and assumptions that were applied in presenting the conclusions, forecasts and projections presented herein. This News Release must be read in conjunction with GWL's filings with securities regulators made from time to time, all of which can be found at www.weston.ca and www.sedar.com.
(3)   Certain 2014 figures have been restated. See note 2, "Significant Accounting Policies" of the Company's unaudited interim period condensed consolidated financial statements, included in the 2015 Second Quarter Report to Shareholders.
(4)   Certain 2014 figures have been restated. See note 4, "Acquisition of Shoppers Drug Mart Corporation" of the Company's unaudited interim period condensed consolidated financial statements, included in the 2015 Second Quarter Report to Shareholders.
(5)   The Consumer Price Index for Food Purchased from Stores does not necessarily reflect the effect of inflation on the specific mix of goods sold in Loblaw stores.
     

 

SOURCE George Weston Limited


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