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Report No. : |
303060 |
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Report Date : |
15.01.2015 |
IDENTIFICATION DETAILS
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Name : |
LOBLAW COMPANIES LIMITED |
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Registered Office : |
22 St Clair Avenue East, Ste 800, Toronto, Ontario M4T 2S5 |
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Country : |
Canada |
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Date of Incorporation : |
18.01.1956 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject operates as a food retailer and provider of drugstore,
general merchandise, and financial products and services |
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No. of Employees : |
192,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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: 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: +1905-459-2500
Fax: +1 905-861-2206
Website: www.loblaws.com
Corporate ID#: 126764
State: Federal
Judicial form: Public Company
Date incorporated: 01-18-1956
Stock: 412,826,834
shares issued and outstanding
(as of
12-31-2014)
Market capitalization: CAD 24,666,403,332=
Name of
manager: Trius VINCENTE
Business:
Loblaw Companies Limited operates as a food retailer and provider of drugstore, general merchandise, and financial products and 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: 192,000
Operations & branches:
At the
headquarters, we find the corporate office.
The Company
maintains numerous supermarkets in Canada, including the one located:
2 Atlantic
Avenue
Toronto,
Ontario M6K 1X8
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.
Other Directors include Anthony R. GRAHAM, Thomas C. O’EILL, Paul BEESTON,
Nancy LOCKHART, John S. LACEY, Galen G. WESTON, Stephen E. BACHAND,
Christie J.B. CLARK, Warren BRYANT, Domenic PILLA, Holger KLUGE, Sarah RAISS, and Beth PRICHARD.
Subsidiaries
And partnership: Several in Canada
On
attachment:
- 10K 2013
- 3rd 10Q
2014
On November 12, 2014, Loblaw Companies Limited announced unaudited consolidated earnings results for the third quarter and nine months ended
October 4, 2014.
For the quarter, the company reported revenue of CAD 13,599 million against CAD 10,009 million a year ago. EBITDA was CAD 835 million against CAD 629 million a year ago.
Adjusted EBITDA was CAD 1,001 million against CAD 638 million a year ago. Operating income was CAD 335 million against CAD 375 million a year ago.
Adjusted operating income was CAD 669 million against CAD 384 million a year ago. Net earnings were CAD 142 million or CAD 0.34 per basic and diluted share against CAD 150 million or CAD 0.53 per basic and diluted share a year ago. Adjusted net earnings were CAD 371 million or CAD 0.90 per basic share against CAD 205 million or CAD 0.73 per basic share a year ago. Revenue increased by CAD 3,590 million compared to the third quarter of 2013, primarily due to Shoppers Drug Mart. Excluding the impact of Shoppers Drug Mart, consolidated revenue increased by 2.0% primarily due to an increase in the Company's Retail segment, slightly offset by a decrease in revenue in the Financial Services segment. EBITDA was positively impacted by the net gain on store and pharmacy divestitures related to the acquisition of Shoppers Drug Mart (CAD 2 million) and negatively impacted by the recognition of the fair value increment on the acquired Shoppers Drug Mart inventory sold (CAD 107 million), increased restructuring costs (CAD 43 million), increased fixed asset and other related impairments (CAD 6 million) and a fair value adjustment on Shoppers Drug Mart's equity-based compensation liability (CAD 5 million). Adjusted EBITDA increased by CAD 363 million compared to the third quarter of 2013, primarily driven by Shoppers Drug Mart. Operating income was negatively impacted by the amortization of intangible assets of CAD 168 million related to the acquisition of Shoppers Drug Mart and was also impacted by the net factors related to EBITDA. Adjusted operating income increased by CAD 285 million compared to the third quarter of 2013, primarily driven by Shoppers Drug Mart. Excluding the impact of Shoppers Drug Mart, adjusted operating income increased by CAD 10 million and was positively impacted by an increase in adjusted EBITDA in the company's Retail segment and a decrease in depreciation and amortization of CAD 2 million. Net earnings decreased by CAD 8 million compared to the third quarter of 2013, primarily driven by the decrease in operating income, largely offset by the decrease in net interest expense and other financing charges and by the decrease in income taxes. Adjusted net earnings increased by CAD 166 million compared to the third quarter of 2013, primarily driven by higher adjusted operating income, mainly as a result of Shoppers Drug Mart, partially offset by higher net interest and other financing charges after excluding certain items, and the increase in income tax expense on adjusted net earnings. The increase in adjusted net earnings per share was primarily due to the increase in adjusted net earnings, partially offset by the dilutive effect of the 119.5 million common shares issued as partial consideration for the acquisition of Shoppers Drug Mart.
For the third quarter of 2014, free cash flow was CAD 216 million compared to negative CAD 5 million in the third quarter of 2013. The increase in free cash flow was primarily due to higher cash flows from operating activities, net of credit card receivables, partially offset by higher interest payments. The higher cash flows from operating activities were primarily due to Shoppers Drug Mart. Cash flows from operating activities was CAD 704 million against CAD 210 million a year ago. Fixed asset purchases were CAD 300 million against CAD 252 million a year ago. Intangible asset additions were CAD 30 million against CAD 3 million a year ago.
For the nine months, the company reported revenue of CAD 31,198 million against CAD 24,731 million a year ago.
EBITDA was CAD 1,234 million against CAD 1,653 million a year ago.
Adjusted EBITDA was CAD 2,286 million against CAD 1,617 million a year ago. Operating income was CAD 155 million against CAD 1,025 million a year ago. Adjusted operating income was CAD 1,500 million against CAD 989 million a year ago.
Net loss was CAD 194 million or CAD 0.52 per basic and diluted share against net earnings of CAD 513 million or CAD 1.82 per basic and diluted share a year ago. Adjusted net earnings were CAD 828 million or CAD 2.24 per basic share against CAD 535 million or CAD 1.90 per basic share a year ago. Free cash flow was CAD 597 million against CAD 45 million a year ago. Cash flows from operating activities were CAD 1,617 million against CAD 753 million a year ago. Fixed asset purchases were CAD 638 million against CAD 561 million a year ago. Intangible asset additions were CAD 48 million against CAD 12 million a year ago.
For 2014, the company expects its business divisions to achieve financial and operational performance, on an adjusted basis and excluding synergies, in line with 2013 performance trends. The company also remains on track to achieve CAD 100 million in net synergies in the first twelve months following the acquisition of Shoppers Drug Mart.
Banks: Royal Bank of Canada
…
Legal filings & complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: Several
Haut du formulaire
Trade
references:
Date
reported: December 2014
High
credit: CAD 60,000
Now owing: 0
Past due: 0
Last purchase:
November 2014
Line of
business: Office supply
Paying
status: On terms
Date
reported: December 2014
High
credit: CAD 150,000,000+
Now owing: 0
Past due: 0
Last
purchase November 2014
Line of
business: Payroll
Paying
status: As agreed
Date
reported: December 2014
High
credit: CAD 26,000
Now owing: 0
Past due: 0
Last
purchase : November 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 05-22-2014.
The risk is
low.
Our
opinion:
A business
connection may be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.15 |
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1 |
Rs.94.24 |
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Euro |
1 |
Rs.73.30 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIS |
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.