MIRA INFORM REPORT

 

 

Report Date :

02.05.2014

 

IDENTIFICATION DETAILS

 

Name :

LOBLAW COMPANIES LIMITED 

 

 

Registered Office :

22 St Clair Avenue East, Ste 800, Toronto, Ontario M4T 2S5

 

 

Country :

Canada

 

 

Date of Incorporation :

18.01.1956

 

 

Legal Form :

Public Company  

 

 

Line of Business :

Subject operates as a food retailer and provider of drugstore, general merchandise, and financial products as well as services primarily in Canada and the United States.

 

Subject operates through three segments:- Retail, Financial Services, and Choice Properties.

 

 

No of Employees :

138,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.

 

Source : CIA


 

COMPANY NAME & ADDRESS

 

Company name:            LOBLAW COMPANIES LIMITED (in English)

                                    LES COMPANIES LOBLAW LIMITEE (in Frenckh)

 

Reg. Address:               22 St Clair Avenue East, Ste 800, Toronto, Ontario M4T 2S5

                                    Canada

 

Headquarters:               1 Presidents Choice Circle, Brampton, Ontario L6Y 5S5 – canada

 

Telephone:                    +1 905-459-2500
Fax:                              +1 905-861-2206

Website:                       www.loblaws.com

 

 

COMPANY SUMMARY

 

Corporate ID#:              126764

State:                           Federal

Judicial form:                Public Company  

Date incorporated:        01-18-1956

Stock:                           412,730,072 shares issued and outstanding

                                    (as of 04-25-2014)

Market capitalization:     CAD 18,911,291,899=

Name of manager:         Trius VINCENTE

 

 

ACTIVITIES & OPERATIONS

 

Business:

Loblaw Companies Limited operates as a food retailer and provider of drugstore, general merchandise, and financial products as well as services primarily in Canada and the United States.

 

It operates through three segments: Retail, Financial Services, and Choice Properties.

 

The Retail segment operates in conventional and discount banners.

 

The conventional banners offer an assortment across various food and complementary categories; and the discount banners deliver a selection of fresh foods, health, apparel, and home needs. It owned store banners include Atlantic Superstore, Box by No Frills, Dominion, Extra Foods, Loblaws, Maxi, Maxi & Cie, Provigo, Provigo Le Marché, Real Canadian Superstore, T&T Supermarket, and Zehrs Markets as well as wholesale outlets operating as Cash & Carry, Presto, and The Real Canadian Wholesale Club. This segment’s franchised and affiliated stores brands comprise Atlantic SaveEasy, Extra Foods, Fortinos, Loblaw City Market, nofrills, Provigo, SuperValu, valu-mart, and Your Independent Grocer.

 

The Financial Services segment provides credit card services, a retail loyalty program, insurance brokerage services, personal banking services, deposit taking services, and telecommunication services comprising gift card and mobile phone services.

 

The Choice Properties segment owns and leases commercial properties. Loblaw Companies Limited also markets control brand products in the food, health and beauty, apparel, and general merchandise categories under brand names, including President’s Choice, PC, no name, Joe Fresh, PC Organics, Blue Menu, PC black label, Club Pack, Free From, The Decadent, PC G.R.E.E.N, PC Nutrition First, Exact, T&T, Teddy’s Choice, Tera Gear, Jump Kids World, and Everyday Essentials.

 

The company was founded in 1956 and is headquartered in Brampton, Canada. Loblaw Companies Limited is a subsidiary of George Weston Limited.

 

Staff:                            138,000

 

Operations & branches:

 

At the headquarters, we find the corporate office.

 

The Company maintains supermarkets in Canada, including the one located:

 

2 Atlantic Avenue

Toronto, Ontario M6K 1X8

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

WESTON FOOD DISTRIBUTION INC.

22 St. Clair Avenue East, Toronto, Ontario M4T 2S7 – Canada

 

Which is a subsidiary of:

 

George Weston Limited

22 St. Clair Avenue East, Toronto, Ontario M4T 2S7 - Canada

(Listed with the Toronto Exchange under symbol WN)

 

Management:

Vicente TRIUS is the President, Director and CEO since August 2, 2011.

 

He served as an Executive Director of Europe and Member of Executive Board at Carrefour SA from May 3, 2010 to May 1, 2011. He served as the Chief Executive Officer and President of Wal-Mart Asia International at Wal-Mart Stores Inc., from January 2008 to July 6, 2009. He served as the Chief Executive Officer and President of Wal-Mart Latin America of Wal-Mart Stores Inc. from July 06, 2009 to 2010 and from July 6, 2009 to November 2009 respectively. He served as an Executive Vice President of Wal-Mart Stores Inc. from January 2008 to 2010. Mr. Trius served as the Vice President of international operations for Wal-Mart as well as the Chief Executive Officer of Brazil and Asian divisions of Wal-Mart. He served as the Chief Executive Officer and President of Wal-Mart of Asia International from January 2008 to July 6, 2009. He served as Chief Executive Officer and President of WMS Supermercados do Brasil S.A (also known as Wal-Mart Brasil Ltd). Prior to joining Wal-Mart, he worked for Dairy Farm International and Revco Drugstores. He has been Director of Loblaw Companies Limited. since 2013. Mr. Trius has received numerous awards and honors including 'Executive of Value' from the Brazilian Retail Sector in 2006 and 2007 as well as the Sam M. Walton Entrepreneur of the Year Award, the highest honor awarded to a Wal-Mart associate worldwide. His education includes an Executive MBA at Darden School of Business and studies at the Harvard Business School of Executive Education, Ashridge College in the U.K., and the University of Barcelona.

 

Galen G. WESTON is Executive Chairman and Director

Sarah Ruth DAVIS is the CFO.

 

 

Subsidiaries And Partnership:

Several in Canada

 

 

FINANCIALS

 

Currency in
Millions of Canadian Dollars

As of:

Jan 01
2011
CAD

Dec 31
2011
CAD

Dec 29
2012
CAD

Dec 28
2013
CAD

REVENUES

30,836.0

31,250.0

31,604.0

32,371.0

NET INCOME

675.0

769.0

634.0

630.0

 

 

 

Banks:  Royal Bank of Canada

 

 

LEGAL FILINGS

 

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   Several

 

 

COMPANY CREDIT HISTORY

 

Trade references:

Date reported:               March 2014

High credit:                   CAD 50,000

Now owing:                   0

Past due:                      0

Last purchase:              February 2014

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               March 2014

High credit:                   CAD 150,000,000+

Now owing:                   0

Past due:                      0

Last purchase:              February 2014

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               March 2014

High credit:                   CAD 25,000

Now owing:                   0

Past due:                      0

Last purchase:              February 2014

Line of business:           Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

National Credit Bureaus gave a satisfying credit rating.

According to our credit analysts, during the last 6 months, domestic payments were made on terms.

 

 

International credit history:

Payments of imports are currently made on terms.

 

 

Other comments:

The Company is developing a regular business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on April 9, 2004.

The risk is low.

 

 

Our opinion:

A business connection may be conducted.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.45

Euro

1

Rs.83.31

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

MNL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

--

NB

                                       New Business

--

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.