MIRA INFORM REPORT
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Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
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Name : |
LOBLAWS INC |
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Formerly Known As : |
Loblaw Groceterias Co., Ltd |
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Registered Office : |
1 Presidents Choice Circle, Brampton, ON, L6Y 5S5 |
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Country : |
Canada |
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Financials (as on) : |
02.01.2010 |
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Year of Establishment : |
1919 |
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Legal Form : |
Corporation for Profit |
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Line of Business : |
Subject operates as Supermarkets |
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No. of Employees
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126,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Canada |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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POLITICAL DATA |
ECONOMIC DATA |
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Form of Government: Federal
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Currency: 1.00 CAD = 0.983386 USD |
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Legal Name: |
LOBLAWS INC |
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Legal Address |
1 Presidents Choice Circle, Brampton, ON L6Y 5S5, Canada |
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Operative Address |
1 Presidents Choice Circle, Brampton, ON L6Y 5S5, Canada |
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Telephone: |
+ 1 (905) 459-2500 |
Document Number : |
NA |
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Fax: |
+ 1 (905) 861-2387 |
Legal Form: |
Corporation for Profit |
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Email: |
Registered in: |
Ontario |
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Website: |
Date Created: |
1919 |
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Manager: |
Galen Weston, President |
Date Incorporated: |
NA |
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Staff: |
126,000 |
Stock: |
NA |
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Value: |
NA |
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Activity: |
Supermarkets |
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Name of the Bank |
RBC; CIBC |
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HISTORY |
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Loblaws, Inc. was formerly known as Loblaw Groceterias Co., Ltd. The company
was founded in 1919 and is based in Toronto, Canada. |
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PRINCIPAL ACTIVITY |
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Loblaws, Inc. operates supermarkets in Canada. |
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Products/Services description: |
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Its stores offer jewelry, beauty products, foods, PC home products, dry
cleaners, gift cards, and natural health products, as well as a photo studio,
a salad and sushi bar, an in store printing/photo lab, and a bakery. The company also offers products online. |
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Sales are: |
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Retail |
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Clients: |
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Miscellaneous, depending on the demand. |
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Suppliers: |
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ORMI |
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Operations area: |
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National, Local |
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The company does not export |
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Trade References: |
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The person contacted refused to provide the name of the suppliers for us
to check trade references. |
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The subject employs 126,000 employee(s) |
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PAYMENTS |
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regular |
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LOCATION |
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Headquarters |
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The company is headquartered at the address listed above. |
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Branches: |
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The company has several locations across Canada. |
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Listed at the stock exchange: |
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NO |
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Shareholders Parent Company(ies): |
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Loblaws, Inc. operates as a subsidiary of Loblaw Companies Limited. |
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Management: |
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GALEN WESTON, President DAVID K BRAGG, Executive Vice President, DONALD REID, Senior Vice President. |
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Related Companies: |
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Atlantic Wholesalers Ltd. Loblaws Supermarkets Ltd. Zehrmart Limited Fortinos Supermarket Limited Loblaw Properties Ltd Provigo Distribution Inc Provigo Inc. President’s Choice Bank Loblaws Financial Holdings Inc. Provigo Properties Limited Loblaw Properties West Inc. |
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As a private company the subject does not publish any financial
statements. |
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We have contacted the operator of the company, who refused to
provide us any financial data on grounds of confidentiality. |
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However our financial sources could provide us with the following
data: |
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Currency |
DATE |
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USD |
2010 |
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Turnover |
26,060,053,240 |
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The cash flow is |
NORMAL |
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Currency |
DATE |
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USD |
2009 |
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Turnover |
24,087,650,000 |
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The cash flow is |
NORMAL |
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Legal Fillings |
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The sources consulted record
detrimental legal or labor information. UFCW Canada Sets Strike Deadline at Loblaw Companies Limited Grocery
Stores if No Settlement Reached by Early October 09/11/2010 Four days of talks between UFCW Canada and Loblaw Companies Limited
wound up on Sept. 11, 201 with some progress on key issues but no settlement
in the prolonged negotiations that have been underway since April. UFCW local
unions 1977, 1000A and 175 and 633 say there are major issues that need to be
resolved if a strike is to be avoided. The union s bargaining committee set a
strike deadline of 12:01 a.m., October 8, if no agreement is reached and
ratified by the membership at Loblaws, Zehrs, Real Canadian Superstores and
Great Food stores, all subsidiaries of Loblaw Companies Limited. |
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Local credit bureau gave a good credit
rate. The company is in Good Standing. This
means that all local and federal taxes were paid on due date. |
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Final
Opinion |
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This is a big sized Canadian company. It started operations in 1919. Therefore,
it has an excellent experience in its field. LOBLAWS INC is a subsidiary of Loblaw
Companies Limited, which is the largest food retailer in Canada The company has a solid business structure
with a large workforce and several locations within Canada. It also has
international networks. A credit line may be considered for USD
2,000,000.- |
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Profitability |
N.A. |
Public |
YES |
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Indebtedness |
N.A. |
Payments |
REGULAR |
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Cash |
NORMAL |
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Position |
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Operator |
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Comments |
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The person contacted refused to provide us any information. |
LOBLAWS COMPANIES
LIMITED
Parent Company -
FS 2010
For the years ended January
2. 2010 and January 3, 2009
(millions except where otherwise indicated}
2009 2008
(52
Weeks) (53 Weeks)
Operating Results
Sales S 30,735 $
30.802
Gross
profit 7,196 6,911
Operating
income 1,205 1,052
Interest
expense and other financing charges 269 263
Ne1
earnings 656 550
Cash Flow
Cash
flows from operating activities 1,945 960
Capital
investment 1,067 750
Per Common Share ($)
Basic
net earnings 2.39 2.01
Dividend
rate at year end 0.84 0.84
Cash
flows from operating activities' 7.07 3.50
Book
value 22.71 21.16
Markel
price at year end 33.88 35.23
Financial Ratios
Operating
margin 3.9% 3.4%
EBITDA3 1,794 1,602
EBITDA
margin3 5.8% 5.2%
Net
debt3 2,783 3,293
Net
debt3 to EBITDA1 1.6X 2.1«
Net
debt3 to equity3 0.4:1 05:1
Interest
coverage' 4.2X 3.7x
Return
on average net assets3 12.0% 10.7%
Return
on average shareholders'equity 10.9% 9.7%
Operating Statistics
Retail
square footage (in milions) 50.6 49.8
Corporate
square footage (in millions) 38.2 37.7
Franchise square footage (in mil lions) 12.4 12.1
Average
corporate store size (square feet) 62,300 61,900
Average
franchise store size (square feet) 29,700 28,400
Corporate
stores sales per average square foot (S) 597 624
Same-store
sales (decline) growth (1-1%) 4.2%
Number
of corporate stores 613 609
Number
of franchised stores 416 427
Percentage
of corporate real estate owned 72% 74%
Percentage
of franchise real estate owned 48% 48%
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.21 |
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UK Pound |
1 |
Rs.77.75 |
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Euro |
1 |
Rs.64.58 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.