Improvements at Loblaw boost Weston Q1 profit to $107 million

TORONTO - George Weston Ltd. (TSX:WN) is reporting a 189 per cent increase to its first-quarter profit, mostly because of improved results from its stake in Loblaw (TSX:L).

The Toronto-based company, which also owns the Weston Foods bakery business, had $107 million or 83 cents per share of net income for common shareholders in the quarter ended March 25.

That's up from $37 million in the comparable period last year, even though revenue was unchanged at $10.8 billion.

Weston said the year-over-year improvement in its net income was due to several factors, including better underlying performance at Loblaw's retail segment and the parent company's increased ownership in Loblaw.

This year's first-quarter profit was also helped by a $47 million positive adjustment to the fair value of its previously announced agreement to sell 9.6 million common shares of Loblaw.

After adjustments, earnings available to common shareholders were up 8.9 per cent to $183 million or 83 cents per share and the dividend for Weston common shares will rise 3.4 per cent to 45.5 cents per quarter with the July payout.

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