George Weston Ltd. on March 2 posted better-than-expected earnings for fiscal 2017 driven by improved performance during the fourth quarter and increased interest in food and pharmacy company Loblaw Cos. Ltd.
The Canadian food distributor reported that adjusted diluted net earnings per common share for the year ended Dec. 31, 2017, grew 7.9% year over year to C$7.00 from C$6.49 a year earlier, beating the mean consensus of analysts' estimates compiled by S&P Capital IQ for normalized EPS of C$6.91.
Adjusted net earnings available to common shareholders of the company rose 7.9% year over year to C$904 million from C$838 million in 2016 on the positive effect of George Weston's increased stake on Loblaw and improvement in fourth quarter underlying operating performance.
Sales for the Weston family-controlled company went up 0.6% year over year to C$48.29 billion from C$48 billion.
For full year 2018, Toronto-based George Weston forecast adjusted net earnings to be "essentially flat" from the impact of share repurchases by its food retailing unit Loblaw and of negative foreign exchange on Weston Foods sales.
