Sobeys parent Empire beats profit growth estimates, raises dividend
Grocery retailer Empire Co. Ltd. EMP-A-T beat analysts' estimates for profit growth in the fourth quarter, reporting that its store chains such as FreshCo and Sobeys took market share from competitors.
The Stellarton, N.S.-based company reported on Thursday that sales grew in both the company's FreshCo discount stores, as well as its full-service grocery stores such as Sobeys, Safeway and IGA. Same-store sales – an important industry metric that tracks sales growth not tied to new store openings – were up 3 per cent in the quarter ended May 3, compared to the same period last year.
Empire reported net earnings grew to $173-million or 74 cents per share in the fourth quarter, compared to $149-million or 61 cents per share the prior year. That exceeded analysts' expectations of $164.5-million or 71 cents per share, according to the consensus estimate from S&P Capital IQ
The company also announced a 10-per-cent increase in its quarterly dividend paid to shareholders.
Fourth-quarter sales grew to $7.6-billion, up 3 per cent compared to the prior year, driven by strong performance at grocery stores, partly offset by lower sales at the company's gas stations as fuel prices fell.
The expansion of the Farm Boy and FreshCo store chains contributed to profit growth, as did initiatives aimed at reducing 'shrink,' an industry term for products that are lost before they can be sold – such as through theft or spoilage.
This time last year, Empire made the decision to pull back on the pace of expansion of its Voilà e-commerce service, saying the market for online groceries in Canada was smaller than expected. After ending its exclusive partnership with technology provider Ocado Group PLC earlier than planned, Empire launched partnerships with third-party delivery companies Instacart and Uber Eats, which have contributed to growth. Online sales rose by 80.2 per cent in the quarter.
The company continues to cut costs in its online service as it seeks to reach profitability. Construction of a fourth e-commerce distribution centre, underway in Vancouver, remains on hold, and will resume 'once e-commerce penetration rates in Canada increase,' according to a press release issued on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
25 minutes ago
- CTV News
In-person distribution of Ontario Works cheques and payment cards continues in Windsor
The City of Windsor is implementing their contingency plan to ensure Ontario Works clients receive their income support cheques and reloadable payment cards (RPCs). Officials say in-person distribution of Ontario Works cheques will be implemented this week due to the ongoing potential for a Canada Post work disruption. July monthly assistance cheques will be available for pickup as follows: Windsor Office Recipients: Monday, June 30, 2025, and Wednesday, July 2, 2025 9 a.m. to 4 p.m. 400 City Hall Square East, Suite 102, Windsor Leamington Office Recipients: Monday, June 30, 2025, and Wednesday, July 2, 2025 11 a.m. to 4 p.m. 33 Princess St., Leamington Recipients must bring two pieces of government-issued identification, one of which must have a photo. You can call 1-800-808-2268 to ensure your cheque has been printed and is ready for pick-up before proceeding to the cheque distribution location.
CTV News
40 minutes ago
- CTV News
Here's how much TransLink is raising fares on July 1
Expo Line SkyTrain at Commercial-Broadway Station is seen in this undated image. (Shutterstock) Starting July 1 transit users in Vancouver will pay more per trip, as TransLink implements the biggest fare increase since the onset of the COVID-19 pandemic. In 2020, the transit authority cancelled a planned increase of 4.6 per cent and the following three years saw increases of 2.3 per cent annually. 'Fare increases have remained low, despite higher-than-normal levels of inflation,' TransLink's 2025 Investment Plan says. The increase for 2025 amounts to an average of four per cent to allow TransLink to 'continue to provide essential transit services and keep Metro Vancouver moving,' according to an update on the website. In 2026, fares will jump another five per cent after which there will be a two per cent yearly increase. 'This increase means fares will remain below long-term inflation while providing critical additional revenue to ensure we can continue to provide safe and reliable service to our customers,' the 2025 Investment Plan says. The following is a breakdown of how much fares will increase starting July 1. Adult cash fares and contactless payment fares 1-Zone: Increasing from $3.20 to $3.35 2-Zone: Increasing from $4.65 to $4.85 3-Zone: Increasing from $$6.35 to $6.60 Adult stored value fares: 1-Zone: Increasing from $2.60 to $2.70 2-Zone: Increasing from $3.85 to $4 3-Zone: Increasing from $4.90 to $5.10 Adult monthly pass: 1-Zone: Increasing from $107.30 to $111.60 2-Zone: Increasing from $143.50 to $149.25 3-Zone: Increasing from $193.80 to 201.55 Concession cash fares and stored value fares 1-Zone: Increasing from $2.15 to $2.35 2-Zone: Increasing from $3.15 to $3.30 3-Zone: Increasing from $4.35 to $4.50 Concession monthly pass :
CTV News
an hour ago
- CTV News
Brockville, Ont. businesses gearing up for Canada Day
Canada Day-themed fudge being sold by O'Malley Kourt Fudgery and Ice Cream shop in downtown Brockville, Ont. June 29, 2025. (Jack Richardson/CTV News Ottawa). Canada Day is fast approaching and businesses along King Street in downtown Brockville, Ont. are gearing up. While most are decked out with flags, decorations and Canada-themed clothing for sale, a few have gone a step further. O'Malley Kourt Fudgery and Ice Cream Shop is selling Canada Day fudge and cookies. 'We have come up with a Canada Day fudge, its vanilla raspberry with red and white sprinkles,' says owner Joanne Scarlett. 'They just came in Saturday morning, so nice and fresh and ready to go.' Every July 1, the Brockville Pipe and Drum Corps leads a parade from City Hall to Court House Avenue, but this year will be a bit different. The parade will march even further along King St., heading to Hardy Park where a ceremony will be held to celebrate the country's 158th year. That will allow businesses like O'Malley's to get more involved with the parade than years prior. 'It's really appreciated by all the downtown businesses,' says Scarlett. 'It brings people from the North end of Brockville downtown, gets us exposure.' More details to come Canada Day cake Canada Day written on a cake in Brockville, Ont. on June 29, 2025. (Jack Richardson/CTV News Ottawa)
