Responsibility for all matters that could impact Canadian Tire’s iconic brand

Given the importance of environmental, social, and governance (ESG) related issues, Canadian Tire announced that it has decided to form a Brand and Corporate Responsibility committee. This committee has been tasked with the responsibility for all matters that could impact Canadian Tire’s iconic brand. An important part of the new committee’s duties will be ESG matters, as Canadian Tire believes these are critical to the health of the company’s brand.

Encouraging public policies that promote business profitability and growth

Further, Canadian Tire’s business success has resulted in it being able to provide the jobs, products and services that Canadians need. Therefore, Canadian Tire’s business has been proactive in finding ways to encourage public policies that promote business profitability and growth. The private sector, including Canadian Tire, has played an important role in working with the public sector to get Canada on the path to economic recovery.

Significant strength of an iconic Canadian company

Indeed, Canadian Tire appears to believe that only a true partnership between the private sector and governments at all levels can overcome the challenges posed by the pandemic. The resilience shown by Canadian Tire during fiscal 2020 is yet another indication of the strength of the iconic Canadian company.

Ramping up the company’s e-commerce business to unprecedented levels

Overall, Canadian Tire appears to be a company that refuses to accept anything less than the best it can be in the service of the company’s customers in spite of very challenging circumstances. In a matter of weeks, Canadian Tire appears to have ramped up its e-commerce business to unprecedented levels, amounting to about a billion dollars in 2020.

Temporary impacts from the new work-from-home culture

The new work-from-home culture appears to have affected Canadian Tire’s profitability. However, based on the experience of many executives, working from home is not sustainable. It is stressful, time consuming, and lacks the value of human interaction. Working virtually has made jobs so much harder. Hence, although this has been a headwind to Canadian Tire’s profitability, returning to the office should be a tailwind for Canadian Tire.

Tradition of going from success to success

Circumstances drove Canadian Tire to do in weeks what, in normal circumstances, the company had planned to do in several years. Canadian Tire’s founder appears to have always counselled employees to strive to always make things better. That counsel appears to have now become the company’s mantra. Overall, Canadian Tire is a company that has a tradition of going from success to success and is now part of the fabric of Canada. It appears that even more impressive of a future lies ahead of it.

The post 1 Iconic Canadian Giant Whose Future Is Very Bright appeared first on The Motley Fool Canada.

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Superior operating model resulting in a solid performance

WSP’s superior operating model, in addition to the unparalleled commitment of the company’s resilient workforce, allowed it to finish the year with a solid performance and make progress across all business units, setting the stage for continued growth in 2021.

Diverse workplace culture and strategy

Further WSP has been embracing change over the last several years. Collaboration appears to be central to WSP’s working environment. This year appears to have been a pivotal moment for WSP’s diverse workplace culture and strategy as it re-imagined how and where employees work within a different context.

Confronting a unique moment in time with courage and openness

As COVID-19 reached pandemic status, 90% of WSP’s global workforce shifted to remote work, while continuing to meet the needs of the company’s clients and communities. WSP’s employees appear to have confronted this unique moment in time with courage and openness. From COVID-19 response to relief efforts, WSP’s teams appear to have been called upon to provide the critical support needed to keep the company’s communities safe across the world.

Application of WSP’s global innovation program

Through the application of WSP’s global innovation program, Future Ready, which challenges and inspires all WSP employees to advise and design programs ready for the future as well as today, WSP’s experts explored various topics such as the post-pandemic workplace, the future of public transport, rethinking urban planning, and the impact of COVID-19 on global supply chains.

Helping clients face current challenges as well as preparing for the ones to come

With the 2020 launch of Future Ready in Asia, Latin America, and Central Europe, WSP appears to have achieved the company’s 2021 ambition to execute Future Ready globally, setting it apart in the way WSP delivers sustainable projects. As a true partner to WSP’s clients, WSP brought value that is anchored in the company’s ability to help clients face current challenges as well as prepare for the ones to come.

Strengthening client relationships

Also, WSP’s client relationships, whether new or long-standing, appear to have only been strengthened by this pandemic because the company’s clients have seen firsthand the company’s commitment to keeping projects and portfolios moving thanks to the company’s experienced and dedicated teams.

Delivering strong financial results

Furthermore, WSP has been delivering strong financial results. The flexibility and strength of WSP’s operating model, and tremendous efforts of the company’s leadership and teams, appears to have allowed it to end fiscal 2020 with solid results in line with WSP’s objectives to protect the company’s financial position and maintain margins, which it had set at the beginning of the pandemic.

Solid platform for WSP’s continued success

Despite a decrease in revenues, WSP completed the year in a strong financial position with a healthy backlog, improved adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins, and record cash flows. This provides a solid platform for WSP’s continued success in 2021.

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No material adverse impact of COVID-19

The COVID-19 pandemic, including government measures to limit the spread of COVID-19, did not appear to have a material adverse impact on Canopy Growth’s results of operations in the first quarter of fiscal 2022. However, there appears to be several uncertainties associated with the COVID-19 pandemic for Canopy Growth’s business model.

Potential uncertainties due to COVID-19

Uncertainties include those related to the distribution and acceptance of the vaccines and the effectiveness of the vaccines with respect to new variants of the virus. This could have an impact on the use of Canopy Growth’s products by consumers. Disruptions to the global and local economies due to related stay-at-home orders, quarantine policies, and restrictions on travel, trade, and business operations, and a reduction in discretionary consumer spending also has an impact on Canopy Growth’s business.

Significant ability to absorb any impacts and continue on a high-growth trajectory

Overall, the impact of the COVID-19 pandemic on Canopy Growth’s business, financial condition, results of operations, and cash flows appears quite uncertain at this stage. However, Canopy Growth should easily be able to absorb any impacts and continue on its high-growth trajectory.

Maintaining full operations and internal controls

In addition, since Canopy Growth’s non-production workforce continues to effectively work remotely using various technology tools, the company has been able to maintain full operations and internal controls over financial reporting and disclosures.

Solid balance sheet and excellent financial condition

Also, Canopy Growth has a solid balance sheet and is in excellent financial shape. Canopy Growth has sufficient liquidity available from cash and cash equivalents and short-term investments on hand of $560 million and $1.5 billion, respectively, at June 30, 2021, and from available capacity under the company’s revolving debt facility.

Significant ability to meet working capital and other operating requirements

This enables Canopy Growth to meet working capital and other operating requirements, fund growth initiatives and capital expenditures, settle the company’s liabilities, and repay scheduled principal and interest payments on debt for at least the next 12 months.

Growth by acquisition

Recently, Canopy Growth implemented a plan of arrangement with Acreage Holdings, a United States multi-state cannabis operator. Canopy Growth agreed to acquire approximately 70% of the issued and outstanding shares of Acreage and obtained the right to acquire the other 30% of Acreage.

Pathway into lucrative cannabis markets

This was an excellent move by Canopy Growth. The acquisition of Acreage should provide it a pathway into the lucrative cannabis markets in the United States. However, Canopy Growth and Acreage plan to continue to operate as independent companies until the acquisition of Acreage is completed. Additionally, Canopy Growth has built a hemp supply chain in the United States, which provides it with further growth opportunities.

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Significant financial strength

That outperformance and financial strength appears to have underpinned Intact’s ability to provide significant relief to customers who needed the company’s help. Intact made the biggest acquisition to date by acquiring RSA Insurance Group PLC, a company that Intact appears to have admired for more than a decade.

Expanding the specialty lines platform with international expertise

Intact’s $12.5 billion offer was made in partnership with Scandinavian insurer, Tryg. The acquisition was done entirely virtually and is on track to close in the third quarter of fiscal 2021. It appears that the acquisition will be transformational for Intact, as it will accelerate Intact’s leadership in Canada and expand the company’s specialty lines platform with international expertise.

Delivering excellent customer service

Further, the acquisition will also give Intact entry into the United Kingdom and Ireland with scale. Above all, it will allow Intact to invest more heavily in its core capabilities to deliver excellent customer service and to strengthen its outperformance.

Operating with high levels of engagement

In addition, Intact’s employees appears to have demonstrated significant commitment and dedication, which helped the company meet several milestones. Employees appear to have adapted at an incredible pace last year and with high levels of engagement, which was tracked by management.

Significant ability to deliver strong results

Overall, Intact’s significant ability to deliver strong results, accelerate its strategy, and provide relief to customers comes from being grounded in its values and purpose. Intact’s purpose appears to be to help people, businesses, and society prosper in good times and be resilient in bad times.

Effective risk management

Furthermore, the pandemic appears to have driven home the importance of good risk-management practices and the need to prepare for large tail-risk events. This particularly applies to insurance companies such as Intact. It appears that executive management is well aware of how important effective risk management could turn out to be.

Building a climate-resilient society

Also, Intact appears to understand the seriousness and existential threat of climate change. The company has made some efforts to communicate with governments, businesses and communities about the importance of building a climate-resilient society. Intact looks committed to elevating the company’s role in helping customers and society.

Leveraging the company’s strong financial position

Intact’s response to COVID-19 appears to be a case of experienced leadership in a crisis with a strong sense of purpose. Intact was able to leverage its strong financial position to offer help for people in need while continuing to execute its strategy. Right from the start, Intact took a problem-solving approach and moved quickly to provide relief to the company’s personal and small business customers. This helped build trust, which adds real value over the long term.

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Well-positioned to benefit from the global commodity boom

The COVID-19 pandemic has disrupted global uranium production, adding to the supply curtailments that have occurred in the industry for many years. The duration and extent of these disruptions are still not fully known. However, Cameco appears very well-positioned to benefit from the global commodity boom.

Increasing focus on electrification

The average uranium spot price ended fiscal 2020 at $30.20 per pound more than 20% higher than the average uranium spot price at the end of 2019. Across the globe, there appears to be an increasing focus on electrification for various reasons. Some countries looking to install baseload power, while others are looking for a reliable replacement for fossil fuel sources.

Need for nuclear to sustainably achieve electrification and de-carbonization goals

Finally, there is new demand for things such as the electrification of transportation at precisely the same time that countries and companies globally are committing to net-zero carbon targets. This has led to the recognition, from a policy point of view that nuclear will be needed in the toolbox to sustainably achieve electrification and de-carbonization goals.

Ensuring the availability of long-term supply to fuel nuclear reactors

In the current environment, Cameco appears to believe the risk to uranium supply is greater than the risk to uranium demand. The company expects that it will create a renewed focus on ensuring the availability of long-term supply to fuel nuclear reactors.

More flexibility in the production rate

Over time, Cameco management also appears to expect that this renewed focus on the security of supply will provide the market indicators that producers need. Cameco appears to be taking the steps today and incurring the costs that the company believes will allow it to restart the company’s tier-one assets with more flexibility in the production rate.

Benefitting from the favourable life-of-mine economics

This will also eliminate the care and maintenance costs incurred while Cameco’s tier-one production is suspended and benefit from the favourable life-of-mine economics that the company’s assets provide.

Negotiating favourable supply agreements

Cameco’s market leadership provides it with the ability to negotiate favourable supply agreements, which means the company is one lowest-cost producers of uranium in the world.

Maintain a decent level of profitability throughout the pandemic

The recent pandemic also reinforced the importance of keeping costs low. Cameco’s agility and flexibility in running the business were admirable as the company kept overhead costs to the minimum throughout the pandemic. This helped ensure that the company maintains a decent level of profitability.

Building a sustainable business and build long-term value

Throughout, Cameco appears set to continue to focus on delivering the company’s products responsibly and addressing the environmental, social, and governance risks and opportunities that it believes will make the company’s business sustainable and will build long-term value.

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Development of large-scale innovative projects to create new cash flow streams

Additionally, Inter Pipeline’s new ventures segment focuses on the development of large-scale innovative projects to create new cash flow streams, while better serving the company’s customers through enhanced services or market access. These investments were made after meeting Inter Pipeline’s criteria of being complementary to the existing portfolio of infrastructure assets or provide a new growth platform, with sizeable organic growth opportunities.

Hedging much of the commodity pricing risk away

Once projects are in service and operating as intended, the assets and operations will be transferred to the facility’s infrastructure and marketing segments. Inter Pipeline’s marketing segment is responsible for managing the company’s commodity risk management activities, including hedging. The company hedges much of the commodity pricing risk away.

Converting locally sourced, low-cost propane into polypropylene

In addition, Inter Pipeline’s new ventures business currently includes the Heartland Petrochemical Complex (HPC), a complex comprised of a propane dehydrogenation (PDH) plant and polypropylene (PP) plant. HPC is designed to convert locally sourced, low-cost propane into 525,000 tonnes per year of polypropylene, an easily transported and recyclable plastic used in the manufacturing of a wide range of essential finished products and consumer goods.

Supporting a stable supply of feedstock and operational flexibility

Due to the highly integrated nature of Inter Pipeline’s natural gas liquids (NGL) operations, HPC can produce polypropylene before the start-up of the PDH facility utilizing polymer grade propylene (PGP) feedstock production from Inter Pipeline’s adjacent Redwater Olefinic Fractionator (ROF). This provides the necessary infrastructure to support a stable supply of feedstock and operational flexibility.

Disciplined business and operational readiness programs

These activities are supported by disciplined business and operational readiness programs that appear to have incorporated a strong environmental, social, and governance (ESG) framework to help drive long-term value for all Inter Pipeline stakeholders.

Creating jobs and investing in market-driven petrochemical facilities

Inter Pipeline was also awarded a $408 million cash grant under the Alberta Petrochemicals Incentive Program. This program is intended to reward companies for creating jobs and investing in new or expanded market-driven petrochemical facilities within the province of Alberta.

Comprehensive review of strategic alternatives to maximize shareholder value

In February 2021, Brookfield announced the company’s intention to offer to acquire all of the outstanding common shares of Inter Pipeline not already owned by Brookfield. In response, Inter Pipeline’s board initiated a comprehensive review of strategic alternatives to maximize shareholder value. A number of additional revised offers were made by Brookfield, including the most recent one in July 2021.

Great deal for Inter Pipeline shareholders

Under Brookfield’s revised offer, Inter Pipeline shareholders can receive for each Inter Pipeline share, either $20.00 in cash or 0.25 of a Brookfield Infrastructure share. This appears to be a great deal for Inter Pipeline shareholders and appears likely to be accepted by shareholders.

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Moving the business forward and weathering the storm

While the pandemic cost Saputo a year of growth in fiscal 2021, Saputo kept moving the business forward and continued to weather the storm. In fiscal 2022, Saputo is embarking on an exciting four-year journey to boost organic growth across the company’s business.

Laser-focused on strengthening the core business

With Saputo’s new global strategic plan, the company appears laser-focused on strengthening the core business, accelerating product innovation, increasing the value of the company’s ingredients portfolio, optimizing and enhancing operations, and creating enablers to fuel investments.

Expanding the business through acquisitions, and seizing accretive opportunities

This plan complements Saputo’s ongoing efforts to expand the company’s business through acquisitions, and Saputo appears ready and able to seize accretive opportunities. In fact, Saputo appears to have just recently completed two strategic acquisitions that should contribute favourably to the company’s new global strategic plan.

Creating shared value by improving operations and becoming more efficient

Recently, Saputo acquired United Kingdom-based dairy alternative cheese player Bute Island Foods and the Reedsburg facility of Wisconsin Specialty Protein, LLC, specializing in value-added ingredients. Finally, as it did in fiscal 2021, Saputo appears set to seek to create shared value by improving operations and becoming more efficient.

Obtaining steady guidance while navigating uncharted territory

Further, Saputo has effective oversight, which turned out to be invaluable during the pandemic. Saputo’s board members provided steady guidance as the company navigated uncharted territory during the pandemic. Saputo’s board, composed of 10 directors, eight of whom are independent, appears to be a highly engaged and experienced group that takes great care in carrying out the board’s stewardship role.

Sound decision-making and the adoption of high-quality corporate governance practices

During the pandemic, Saputo’s board appears to have considered the interests of all stakeholders, starting with the company’s shareholders. Saputo’s directors appear to have stayed up to date on the latest trends, particularly as it relates to environmental, social, and governance issues. This seems to have ensured sound decision-making and resulted in the adoption of high-quality corporate governance practices.

Taking an early leadership position in the largely untapped alternative cheese category

In fiscal 2021, Saputo was also quite vocal about pursuing more dairy alternative opportunities to complement the company’s current product portfolio, with an active focus on taking an early leadership position in the largely untapped alternative cheese category.

Building upon a track record of success

Overall, Saputo has significant prospects over the next decade and the ability to deliver on all fronts in fiscal 2022 and beyond. With a clear roadmap for growth, the strength of Saputo’s global team, and Saputo’s solid financial foundations, Saputo is looking to build upon the company’s track record of success for the long-term benefit of the company’s shareholders, employees, customers, business partners, and the communities it serves.

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Record cash flow leading to increased financial strength

Longer term, through the end of the decade, and as projects in Kinross’s current pipeline come online, the company forecasts average annual production of 2.5 million Au eq. oz. (gold equivalent ounces), with additional upside opportunities. Kinross’s record cash flow has increased the company’s financial strength.

Strong production and disciplined cost and capital management

The combination of strong production, disciplined cost and capital management, and a strong gold price appears to have led to outstanding financial results in fiscal 2020. Adjusted operating cash flow increased by 59% over the previous year, while free cash flow grew to over $1 billion, a six-fold increase compared with 2019.

Continued prospects for strong cash flow

Further, Kinross’s attributable margins increased by 53% to $1,051 per ounce sold, outpacing the increase in the average realized gold price of 27%. Kinross’s adjusted net earnings appears to have more than doubled to approximately $970 million. Given the strength of Kinross’s financial position, and continued prospects for strong cash flow, the company instituted a sustainable quarterly dividend of $0.03 per share.

Investment-grade balance sheet

Also, Kinross has continued to strengthen the company’s investment grade balance sheet, ending the year with just over $1.2 billion of cash and cash equivalents, compared with $575 million at the end of 2019, and with total liquidity of approximately $2.8 billion. Kinross ended 2020 well positioned to fund the company’s growth and continues to reduce debt and return capital to shareholders.

Robust pipeline of development projects and opportunities

With Kinross’s growing production profile and costs trending downwards, the company expects to have a peer-leading free cash flow yield over the next three years. Kinross also has a robust pipeline of development projects and opportunities. Kinross has successfully advanced the company’s portfolio of low-risk development projects in 2020 while expanding the project pipeline with attractive new opportunities in the company’s existing jurisdictions.

Excellent job in ensuring projects advance on budget and on time

Kinross has also done an excellent job in ensuring projects advance on budget and on time. For example, the company’s Tasiast 24k project advanced on budget and on schedule in 2020. The project is expected to increase throughput capacity to 21,000 tonnes per day (t/d) by the end of 2021, and to 24,000 t/d by mid-2023 to increase production, reduce costs, and generate significant cash flow and attractive returns.

Enhance partnerships

Furthermore, Kinross also reached an agreement in principle with the Government of Mauritania to enhance the company’s partnership. In fiscal 2020, Kinross completed the acquisition of the Chulbatkan property in Russia, a large and highly prospective licence area. In 2020, drilling focused on the Udinsk resource pit, the first project expected to be developed at Chulbatkan, supporting the advancement of a pre-feasibility study which is expected to be completed in the fourth quarter of fiscal 2021.

Overall, Kinross appears to be operating very well and could be a great stock to own in 2021.

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Low-cost model and price leadership

Further, strengthening both Gildan’s low-cost model and price leadership are instrumental actions for driving future growth and enhancing the company’s profitability going forward. Ultimately, Gildan expects that the company’s Back to Basics strategy will enable it to emerge from the pandemic as a stronger company and more formidable competitor, allowing it to deliver on the company’s long-term growth and financial targets.

Impact of remote working conditions and healthier lifestyle trends

Several industry shifts that were well underway in recent years have been reinforced by the pandemic. The most apparent of them is casualization, which has been amplified by remote working conditions and healthier lifestyle trends. Further, Gildan’s portfolio of basic apparel is well-positioned to address the increasing demand for comfort.

Increasing flexibility and resilience to better balance supply chains

In addition, private brands have also been gaining traction in recent years as customers and consumers begin favouring value and convenience. This appears to be another trend heightened by the COVID-19 crisis. From a supply chain perspective, many companies who source products are re-evaluating how the businesses can increase flexibility and resilience to better balance supply chains.

Addressing the risk of disruptions by forging stronger partnerships

This also addresses the risk of disruptions, while exploring strategies like near-shoring or the forging of stronger partnerships. Environmental, social, and governance issues are also becoming an increasingly important part of the decision-making process for consumers, business partners, and all stakeholders, with growing attention on traceability and social impact in the apparel industry.

Vertically integrated and cost-effective global manufacturing operations

These deep shifts should provide new opportunities for Gildan as the company’s scale and capabilities allow it to execute on larger basic apparel programs. Gildan’s vertically-integrated and cost-effective global manufacturing operations offer a stable and transparent supply chain as well as proximity to the company’s markets.

Set for expansion and should facilitate servicing European and Asian markets

Further, Gildan’s Bangladesh hub appears set for expansion and should facilitate servicing European and Asian markets and provide certain products in North America. Most importantly — and central to Gildan’s vision of making apparel better — the company’s strong ESG practices render it a manufacturing partner of choice for those who recognize the inherent link that environmental practices, social impact, and good governance has on strengthening company resilience, sustainability, and financial performance in the long run.

Well-positioned for the future

Overall, Gildan appears well-positioned for the future. The apparel industry is on track to recovery, and Gildan is well able to take significant advantage as the environment returns a semblance of normalcy.

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Loyal tenant base

These initiatives appear to have helped build a loyal tenant base. To help residents, CAPREIT’s rent-payment programs assisted many through challenging times, and at year-end, approved payment plans represented approximately 0.5% of the company’s resident base. CAPREIT also temporarily and voluntarily suspended any rent increases beginning in April 2020, before any legislative restrictions were introduced.

Considerable investments in technology solutions

Further, CAPREIT has made considerable investments in technology solutions to make the company’s business processes more efficient and scalable. During the pandemic, these new solutions appear to have proven invaluable. CAPREIT accelerated the launch of resident portals during the year, enabling residents to transact with it virtually.

Enhancing convenience for residents and improving the timing of rent collections

A key feature was CAPREIT’s pre-authorized payment plan and other online methods of paying rents, enhancing convenience for the company’s residents, and improving the timing of rent collections and the company’s ability to react to resident issues. A key focus through the pandemic has been on rent collections.

Ensuring CAPREIT can keep in touch with prospective new residents

Also, CAPREIT launched virtual property tours and online lease applications to ensure it could keep in touch with prospective new residents. Since March, CAPREIT has reported that it has signed off on average 2,700 leases each quarter remotely, ensuring the safety of the company’s residents and staff and efficiently filling vacant suites.

Strong and stable occupancies

With these and other programs, it appears that occupancies remained strong and stable during the pandemic, ending the year at 97.5%. Another reason for CAPREIT’s strong performance during the pandemic, and over the past many years, is the company’s commitment to diversity. CAPREIT’s success in building a diverse and inclusive workforce helps it to better interact with and support the company’s communities.

Delivering innovative approaches and solutions

This appears to enable it to deliver innovative approaches and solutions both within and outside the organization. Also, CAPREIT’s employee base includes an almost equal gender split between men and women, and since 2017, women have represented about half of the company’s annual recruitment. It also appears that more than 55 languages are spoken at CAPREIT, a reflection of the diverse makeup of the Canadian population and the company’s resident communities.

Highly multi-generational workforce

CAPREIT’s workforce is also highly multi-generational, and this ensures that the company represents the interests of all age groups. CAPREIT works with social housing agencies and programs, leasing suites to those who need it the most. Almost 2,100 apartments in CAPREIT’s portfolio have been leased by agencies for people in need. This has done wonders for CAPREIT’s reputation and possibly enhanced the company’s intrinsic value.

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