Financial Highlights(1)

Years ended December 31
($ millions except where otherwise indicated)
2007 2006
 

Operating Results

   
Sales 32,815 32,167
Sales excluding the impact of tobacco sales and VIEs (2) 31,346 30,361
Adjusted EBITDA(2) 2,079 2,324
Operating income 1,094 537
Adjusted operating income(2) 1,408 1,643
Interest expense and other financing charges 165 253
Net earnings from continuing operations 563 110
 

Cash Flow

   
Cash flows from operating activities of continuing operations 1,673 1,452
Free cash flow(2) 620 27
Capital investment 722 1,121
 

Per Common Share

($)
   
Basic net earnings from continuing operations 3.92 0.43
Adjusted basic net earnings from continuing operations(2) 4.26 4.98
 

Financial Ratios

   
Adjusted EBITDA margin(2) 6.6% 7.7%
Operating margin 3.3% 1.7%
Adjusted operating margin(2) 4.5% 5.4%
Return on average total assets(2) 6.7% 3.2%
Return on average common shareholders’ equity 12.7% 1.3%
Net debt (excluding Exchangeable Debentures)(2) to equity 0.96:1 0.96:1
 

Reportable Operating Segments

   
Weston Foods    
Sales 4,296 4,350
Operating income 366 256
Adjusted operating income(2) 382 325
Operating margin 8.5% 5.9%
Adjusted operating margin(2) 8.9% 7.5%
Return on average total assets(2) 9.9% 6.6%
Loblaw    
Sales 29,384 28,640
Sales excluding the impact of tobacco sales and VIEs(2) 27,915 26,834
Operating income 728 281
Adjusted operating income(2) 1,026 1,318
Operating margin 2.5% 1.0%
Adjusted operating margin(2) 3.7% 4.9%
Return on average total assets(2) 5.7% 2.2%
 
(1) For financial definitions and ratios refer to the Glossary.
(2) See Non-GAAP Financial Measures (PDF, 70 KB).