George Weston, North America’s largest baked good maker, saw underlying profits fall last year due to the ongoing restructuring at Loblaw, its Canadian supermarket arm.

The company posted a 14.3% fall in adjusted operating income – profit excluding one-off charges – to C$1.4bn (US$1.4bn).

The decrease in group profit came as earnings from Loblaw, Canada’s largest supermarket chain, saw its underlying profits fall from C$1.3bn to C$1bn.

Costs linked to a streamlining and efficiency programme at Loblaw – dubbed Project Simplify – dogged the business, even as turnover from the stores rose 2.6% to C$744m.

Profits from George Weston’s food processing arm, Weston Foods, rose 17.5% to C$382m. An increase in fresh and frozen bakery sales and tight cost control helped the rise in earnings, the company said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, a dip in biscuit sales and the strength of the Canadian dollar meant total revenue from the Weston Foods business dipped 1.2% to C$4.3bn.