Sobeys parent company reports $207.8M Q1 profit, sale up year-on-year

Empire Co. Ltd. says it earned $207.8 million in its latest quarter, down from $261 million a year ago as its sales edged higher.

“We are increasingly optimistic as market conditions are gradually improving, contributing to a more predictable operating environment,” said president and CEO Michael Medline in a press release.

The parent company of the Sobeys grocery chain says its profit amounted to 86 cents per diluted share for the 13-week period ended Aug. 3.

The result was down from a profit of $1.03 per diluted share in the same quarter last year when its bottom line was boosted by the sale of 56 gas stations in Western Canada.

Medline said the company’s strategic initiatives are gaining traction and delivering results. Over the past several years, Empire has been investing in renovations, converting some of its traditional stores into its discount brands and opening new stores as well as other improvements to its network.

“Investing in the store network will remain a priority, demonstrated by a sustained emphasis on renovations and continued store expansion in discount,” the company said in its press release.

On an adjusted basis, Empire says it earned 90 cents per share in its latest quarter, up from an adjusted profit of 78 cents per diluted share in the same quarter last year.

Sales for what was the company’s first quarter totalled $8.14 billion, up from $8.08 billion a year earlier.

Same-store sales for the quarter were up 0.5 per cent, while same-store sales, excluding fuel, increased one per cent.

RBC analyst Irene Nattel said Empire’s operating results came in “a tick above forecast as consumer value-seeking behaviour stabilizes.”

She said the company continues to execute on its strategy to maximize revenue in its full-service stores, despite the broader momentum in discount stores, though she noted Empire is also growing its discount presence.

This report by The Canadian Press was first published Sept. 12, 2024.