Power Corporation Reports Strong Fourth Quarter and 2024 Financial Results, and Dividend Increase of 9%
Readers are referred to the sections Non-IFRS Financial Measures and Forward-Looking Statements later in this release. All figures are expressed in Canadian dollars unless otherwise noted.
MONTRÉAL, March 19, 2025 /CNW/ - Power Corporation of Canada (Power Corporation or the Corporation) (TSX:POW) (TSX:POW) today reported earnings results for the three and twelve months ended December 31, 2024.
Power CorporationConsolidated results for the period ended December 31, 2024
HIGHLIGHTS
POWER CORPORATION
Net earnings from continuing operations 1 for the fourth quarter of 2024 were $933 million or $1.44 per share 2, compared with $409 million or $0.63 per share in the fourth quarter of 2023. Adjusted net earnings from continuing operations 1 3 4 were $829 million or $1.28 per share, compared with $688 million or $1.06 per share in the fourth quarter of 2023.
Net earnings from continuing operations in 2024 were $2,792 million or $4.31 per share, compared with $2,282 million or $3.45 per share in 2023. Adjusted net earnings from continuing operations were $2,971 million or $4.58 per share in 2024, compared with $2,671 million or $4.04 per share in 2023.
Adjusted net asset value per share 3 was $60.44 at December 31, 2024, compared with $53.53 at December 31, 2023. Book value per share 5 was $35.56 at December 31, 2024, compared with $32.49 at December 31, 2023.
In 2024, the Corporation purchased for cancellation 10.6 million subordinate voting shares for a total of $430 million.
GREAT-WEST LIFECO INC. (LIFECO)
Fourth quarter net earnings from continuing operations were $1,116 million, compared with $743 million in the fourth quarter of 2023. Adjusted net earnings from continuing operations 6 were $1,115 million, compared with $971 million in the fourth quarter of 2023.
Lifeco announced an increase of 10% in its quarterly dividend payable March 31, 2025, and its intention to purchase an additional $500 million of its common shares under its existing Normal Course Issuer Bid (NCIB) 7.
Fourth quarter adjusted net earnings were over $1 billion for the third consecutive quarter, reflecting Lifeco's focus to deliver on growth strategies enabling it to exceed its previously announced medium-term financial objectives, including record results and strong value-creating performance at Empower.
IGM FINANCIAL INC. (IGM OR IGM FINANCIAL)
Fourth quarter net earnings were $254.7 million, compared with $419.6 million in the fourth quarter of 2023.Adjusted net earnings 3 were $250.0 million, compared with $204.9 million in the fourth quarter of 2023.
Assets under management and advisement 5 were $270.4 billion, a quarter-end record high, an increase of 12.6% from the fourth quarter of 2023 and 2.1% from September 30, 2024.
Assets under management and advisement including strategic investments 5 were $483.5 billion at December 31, 2024, compared with $390.6 billion at December 31, 2023 and $461.6 billion at September 30, 2024.
GROUPE BRUXELLES LAMBERT (GBL)
GBL reported a net asset value 5 of €15.7 billion or €113.30 per share at December 31, 2024, compared with €16.7 billion or €113.64 per share at December 31, 2023.
In 2024, GBL completed €292 million of share buybacks, and cancelled 8.3 million treasury shares.
SAGARD HOLDINGS INC. (SAGARD)
On March 13, 2025, Sagard and GBL announced a partnership whereby GBL will acquire a 5% interest in Sagard Holdings Management Inc. (SHMI) and commits to invest €250 million in Sagard strategies over the next five years. This partnership reinforces Sagard's long-term growth strategy, strengthening its capital base as well as solidifying GBL's relationship as an anchor LP.
STANDALONE BUSINESSES
The Corporation completed the sale of its 42.6% interest in Peak Achievement Athletics Inc. (Peak) on December 23, 2024, for proceeds of US$325 million.
1
Attributable to participating shareholders.
2
All per share amounts are per participating share of the Corporation.
3
Adjusted net earnings from continuing operations, adjusted net earnings reported by IGM and adjusted net asset value are non-IFRS financial measures. Adjusted net earnings from continuing operations per share and adjusted net asset value per share are non-IFRS ratios. Refer to the Non-IFRS Financial Measures section later in this news release.
4
In 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect these changes.
5
Refer to the Other Measures section later in this news release.
6
Defined as "base earnings" by Lifeco, a non-IFRS financial measure; refer to the Non-IFRS Financial Measures section later in this news release.
7
Subject to market conditions, Lifeco's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging.
Fourth Quarter
Net earnings from continuing operations attributable to participating shareholders were $933 million or $1.44 per share, compared with $409 million or $0.63 per share in 2023.
Adjusted net earnings from continuing operations attributable to participating shareholders 1 were $829 million or $1.28 per share, compared with $688 million or $1.06 per share in 2023.
Net earnings attributable to participating shareholders were $933 million or $1.44 per share, compared with $406 million or $0.63 per share in 2023.
Contributions to Power Corporation's Earnings from Continuing Operations
(in millions of dollars, except per share amounts)
Adjusted Net Earnings
Net Earnings
2024
2023
2024
2023
Lifeco 2
760
662
761
507
IGM 2
156
127
159
260
GBL 2 3
18
26
18
(1)
Effect of consolidation, Lifeco and IGM 4
(6)
(12)
(5)
(178)
Publicly traded operating companies
928
803
933
588
Sagard and Power Sustainable 3 5
(10)
(9)
(22)
(65)
Standalone businesses 3 6
(5)
(13)
106
(21)
913
781
1,017
502
Corporate operations and Other 6 7
(84)
(93)
(84)
(93)
829
688
933
409
Per participating share
1.28
1.06
1.44
0.63
Average shares outstanding (in millions)
645.6
655.2
645.6
655.2
Publicly traded operating companies: contribution to net earnings from continuing operations was $933 million and to adjusted net earnings from continuing operations was $928 million, representing an increase of 58.7% and 15.6%, respectively, from the fourth quarter of 2023:
Lifeco: contribution to net earnings and adjusted net earnings increased by $254 million or 50.1%, and by $98 million or 14.8%, respectively.
IGM: contribution to net earnings decreased by $101 million or 38.8% and contribution to adjusted net earnings increased by $29 million or 22.8%. Net earnings reported by IGM in 2023 included a net gain on its sale of Investment Planning Counsel (IPC) to Lifeco of $221 million, which was eliminated by the Corporation on consolidation 8.
GBL: contribution to net earnings and adjusted net earnings 3 of $18 million in the fourth quarter of 2024, compared with a negative contribution to net earnings of $1 million and a positive contribution to adjusted net earnings of $26 million in the fourth quarter of 2023.
Sagard and Power Sustainable Capital Inc. (Power Sustainable): Sagard had a contribution to net earnings and adjusted net earnings of $49 million and $33 million, respectively, and Power Sustainable's contribution to net earnings and adjusted net earnings were negative $71 million and negative $43 million, respectively.
Standalone businesses: contribution to net earnings of $106 million and a negative contribution to adjusted net earnings 3 of $5 million in the fourth quarter of 2024, compared with negative contributions of $21 million and $13 million, respectively, in the fourth quarter of 2023. Contribution to net earnings in the fourth quarter of 2024 included the gain recognized on the sale of the Corporation's interest in Peak, partially offset by impairment charges on The Lion Electric Company (Lion) and LMPG Inc. (LMPG).
Adjustments in the fourth quarter of 2024, excluded from adjusted net earnings from continuing operations, were a positive net impact to earnings of $104 million or $0.16 per share, mainly related to the Corporation's share of Adjustments of Standalone businesses. In the fourth quarter of 2023, Adjustments were a negative net impact to earnings of $279 million or $0.43 per share, mainly related to the Corporation's share of Adjustments of Lifeco and Power Sustainable as well as Adjustments identified on the contribution from GBL.
1
A non-IFRS financial measure; refer to the Non-IFRS Financial Measures section later in this news release.
2
Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL.
3
In 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect these changes.
4
Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent Management's Discussion and Analysis (MD&A) for additional information.
5
Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries.
6
In the third quarter of 2024, the Corporation modified its presentation; the contribution to net earnings and adjusted net earnings from Standalone businesses has been presented separately, and the contribution from the Corporation's other investment activities, including China Asset Management Co., Ltd. (ChinaAMC) (sold to IGM in January 2023), has been presented within Corporate operations and Other. The comparatives have been reclassified to conform with the current presentation.
7
Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, as well as corporate operations of the Corporation and Power Financial Corporation (Power Financial), which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the Earnings Summary below.
8
Elimination of the gain recognized by IGM on the sale of IPC to Lifeco is included in the Effect of consolidation.
Twelve months
Net earnings from continuing operations attributable to participating shareholders were $2,792 million or $4.31 per share, compared with $2,282 million or $3.45 per share in 2023.
Adjusted net earnings from continuing operations attributable to participating shareholders 1 were $2,971 million or $4.58 per share, compared with $2,671 million or $4.04 per share in 2023.
Net earnings attributable to participating shareholders were $2,743 million or $4.23 per share, compared with $2,195 million or $3.32 per share in 2023.
Contributions to Power Corporation's Earnings from Continuing Operations
(in millions of dollars, except per share amounts)
Adjusted Net Earnings
Net Earnings
2024
2023
2024
2023
Lifeco 2
2,858
2,500
2,735
1,951
IGM 2
586
524
583
714
GBL 2 3
75
111
31
423
Effect of consolidation, Lifeco and IGM 4
(65)
(23)
(74)
(321)
Publicly traded operating companies
3,454
3,112
3,275
2,767
Sagard and Power Sustainable 3 5
(71)
(75)
(97)
(161)
Standalone businesses 3 6
(64)
(15)
(38)
(16)
3,319
3,022
3,140
2,590
Corporate operations and Other 3 6 7
(348)
(351)
(348)
(308)
2,971
2,671
2,792
2,282
Per participating share
4.58
4.04
4.31
3.45
Average shares outstanding (in millions)
648.1
662.0
648.1
662.0
1
A non-IFRS financial measure; refer to the Non-IFRS Financial Measures section later in this news release.
2
Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL.
3
In 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect these changes.
4
Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent MD&A for additional information.
5
Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries.
6
In the third quarter of 2024, the Corporation modified its presentation; the comparatives have been reclassified to conform with the current presentation.
7
Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, including ChinaAMC (sold to IGM in January 2023), as well as corporate operations of the Corporation and Power Financial, which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the Earnings Summary below.
Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert Results for the quarter ended December 31, 2024
The information below is derived from Lifeco's and IGM's annual MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are included in Parts B and C, respectively, of the Corporation's annual MD&A for the year ended December 31, 2024, available under the Corporation's profile on SEDAR+ (www.sedarplus.ca), and are also available either under their respective profiles on SEDAR+ (www.sedarplus.ca) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com. The information below related to GBL is derived from publicly disclosed information, as issued by GBL in its fourth quarter press release at December 31, 2024. Further information on GBL's results is available on its website at www.gbl.com.
GREAT-WEST LIFECO INC.
Fourth Quarter
Net earnings from continuing operations attributable to common shareholders were $1,116 million or $1.20 per share, compared with $743 million or $0.80 per share in 2023.
Adjusted net earnings from continuing operations 1 attributable to common shareholders were $1,115 million or $1.20 per share, compared with $971 million or $1.04 per share in 2023.
Net earnings attributable to common shareholders were $1,116 million or $1.20 per share, compared with $740 million or $0.79 per share in 2023.
Adjustments in the fourth quarter of 2024, excluded from adjusted net earnings, were a net positive impact of $1 million, compared with a net negative impact of $228 million in 2023. Lifeco's adjustments consisted of:
Market experience relative to expectations of positive $38 million;
Assumption changes and management actions of positive $16 million; and
A positive earnings impact from tax legislative changes and other tax impacts of $14 million.Partially offset by:
Amortization of acquisition-related finite life intangible assets of negative $37 million; and
Business transformation impacts of negative $30 million.
IGM FINANCIAL INC.
Fourth Quarter
Net earnings available to common shareholders were $254.7 million or $1.07 per share, compared with $419.6 million or $1.76 per share in 2023.
Adjusted net earnings attributable to common shareholders were $250.0 million or $1.05 per share, compared with $204.9 million or $0.86 per share in 2023. Adjusted net earnings of IGM in the fourth quarter of 2024 excluded a positive impact of $4.7 million related to the benefit recognized on a tax loss consolidation transaction.
Assets under management and advisement (AUM&A) 2 at December 31, 2024 were $270.4 billion, an increase of 2.1% from September 30, 2024 and 12.6% from December 31, 2023.
GROUPE BRUXELLES LAMBERT
Fourth Quarter
GBL reported net earnings of €77 million, compared with a net loss of €3 million in 2023. Net loss in the fourth quarter of 2023 included a negative contribution from Imerys of €73 million which included an impairment of its assets serving the paper market.
GBL reported a net asset value 2 of €15,681 million or €113.30 per share at December 31, 2024, compared with €16,671 million or €113.64 per share at December 31, 2023.
1
Defined as "base earnings" by Lifeco. For additional information, refer to the Non-IFRS Financial Measures section later in this news release.
2
Refer to the Other Measures section later in this news release.
Sagard and Power SustainableResults for the quarter ended December 31, 2024
Sagard and Power Sustainable comprise the results of the Corporation's alternative asset investment platforms, which includes income earned from asset management and investing activities. Asset management activities includes fee-related earnings (a non-IFRS financial measure, see the Non-IFRS Financial Measures section later in this news release), which is comprised of management fees and fee-related performance revenues less investment platform expenses. Asset management activities also includes carried interest and income from other management activities. Investing activities comprises income earned on the capital invested by the Corporation (proprietary capital) in the investment funds managed by each platform and the share of earnings (losses) of controlled and consolidated subsidiaries held within the alternative asset investment platforms. For additional information, refer to the table later in this news release.
Fourth Quarter
Net loss of the alternative asset investment platforms was $22 million, compared with a net loss of $65 million in 2023. The adjusted net loss of the alternative asset investment platforms was $10 million, compared with an adjusted net loss of $9 million in 2023.
The adjusted net loss is comprised of:
A positive contribution of $33 million from Sagard comprised of a negative contribution of $1 million from asset management activities and a positive contribution of $34 million from investing activities. Adjustments in the fourth quarter of 2024, excluded from adjusted net earnings, were a positive impact of $16 million related to the Corporation's share of the remeasurement of deferred tax assets by Wealthsimple, compared with nil in 2023; and
A negative contribution of $43 million from Power Sustainable comprised of a negative contribution of $9 million from asset management activities and a negative contribution of $34 million from investing activities. Adjustments in the fourth quarter of 2024, excluded from adjusted net earnings, were a negative impact of $28 million, compared with a negative impact of $56 million in 2023. Power Sustainable adjustments consisted primarily of a revaluation of non-controlling interests liabilities 1 within the Power Sustainable Energy Infrastructure Partnership (PSEIP).
Summary of assets under management 2 (including unfunded commitments):
(in billions of dollars)
December 31, 2024
December 31, 2023
Sagard 3
38.2
19.8
Power Sustainable
4.2
4.5
Total
42.4
24.3
Percentage from third-party and associated companies 4
92 %
87 %
Standalone Businesses Results for the quarter ended December 31, 2024
Standalone businesses include the Corporation's share of earnings (losses) of Lion, LMPG and Peak (interest sold in the fourth quarter of 2024).
Fourth Quarter
Net earnings from standalone businesses was $106 million, compared with a net loss of $21 million in 2023. The adjusted net loss from standalone businesses was $5 million, compared with an adjusted net loss of $13 million in 2023.
The adjusted net loss in the fourth quarter of 2024 excludes Adjustments of a net positive impact of $111 million, primarily related to i) a net gain of $279 million 5 on the sale of the Corporation's interest in Peak, partially offset by ii) an impairment charge on the Corporation's investment in Lion of $81 million reducing the carrying value of the investment to nil, and iii) the Corporation's share of a non-cash impairment charge recognized on the goodwill of LMPG, net of other market-related impacts, of $87 million.
1
The Corporation controls and consolidates the activities of PSEIP on a historical cost basis; however, limited partner equity interests held by third parties have redemption features and are classified as a financial liability and remeasured at their redemption value. The net asset value 2 of PSEIP was $2,012 million at December 31, 2024, compared with $1,342 million at December 31, 2023.
2
Refer to the Other Measures section later in this news release.
3
Includes ownership in Wealthsimple Financial Corp. (Wealthsimple) valued at $2.1 billion at December 31, 2024 ($1.1 billion at December 31, 2023) and excludes assets under management of Sagard's private wealth investment platform. In the first quarter of 2024, Sagard acquired a controlling interest of Performance Equity Management, LLC, representing assets under management of $13.1 billion at December 31, 2024.
4
Associated companies includes commitments from Lifeco, IGM and GBL, as well as commitments from management.
5
Net of related transaction costs, expenses and taxes.
Adjusted Net Asset Value and Participating Shareholders' Equity At December 31, 2024
Adjusted Net Asset Value
Adjusted net asset value is presented for Power Corporation and represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company (the gross asset value) less their net debt and preferred shares. Refer to the Non-IFRS Financial Measures section later in this news release for a description and reconciliation.
The Corporation's adjusted net asset value per share was $60.44 at December 31, 2024, compared with $53.53 at December 31, 2023, representing an increase of 12.9%.
(in millions of dollars, except per share amounts)
December 31, 2024
December 31, 2023
Variation %
Publicly traded operating companies
Lifeco
30,292
27,871
9
IGM
6,792
5,179
31
GBL
2,162
2,295
(6)
39,246
35,345
11
Alternative asset investment platforms
Sagard 1
2,181
1,327
64
Power Sustainable 1
1,155
1,499
(23)
3,336
2,826
18
Other
Standalone businesses 2
85
800
(89)
Cash and cash equivalents
1,606
1,218
32
Other assets and investments
451
391
15
2,142
2,409
(11)
Gross asset value
44,724
40,580
10
Liabilities and preferred shares
(5,750)
(5,663)
(2)
Adjusted net asset value
38,974
34,917
12
Shares outstanding (in millions)
644.8
652.2
Adjusted net asset value per share
60.44
53.53
13
1
Includes the management companies as well as the fair value of proprietary capital invested in assets managed within the platforms. The management company of Sagard is presented at its fair value and the management company of Power Sustainable is presented at its carrying value.
2
Includes Lion, LMPG and Peak (interest sold in the fourth quarter of 2024).
Power Corporation's Ownership in Publicly Traded Operating Companies
Shares held 1(in millions)
Share price
Ownership 1(%)
December 31, 2024
December 31, 2023
Lifeco
68.2
635.5
$47.67
$43.86
IGM
62.2
147.9
$45.91
$35.01
GBL 2
16.5
22.8
€66.05
€71.22
1
At December 31, 2024.
2
Held through Parjointco SA (Parjointco), a jointly controlled corporation (50%).
Participating Shareholders' Equity
Book value per participating share represents Power Corporation's participating shareholders' equity divided by the number of participating shares outstanding at the end of the reporting period. Participating shareholders' equity is calculated as the total assets of the combined Power Corporation and Power Financial holding company, including investments in subsidiaries presented using the equity method, less their net debt and preferred shares.
The Corporation's book value per participating share was $35.56 at December 31, 2024, compared with $32.49 at December 31, 2023, representing an increase of 9.4%.
(in millions of dollars, except per share amounts)
December 31, 2024
December 31, 2023
Variation %
Publicly traded operating companies
Lifeco
17,108
15,326
12
IGM
4,094
3,702
11
GBL
3,683
3,717
(1)
24,885
22,745
9
Alternative asset investment platforms
Sagard
1,146
829
38
Power Sustainable
503
1,032
(51)
1,649
1,861
