- Earnings per share (“EPS”) and adjusted EPS(1)(2) of $0.91
- Prior year EPS and adjusted EPS of $0.86 and $0.90, respectively
- Sales of $8,258 million, an increase of 1.5%
- Food sales increased by 2.6%; Same-store sales(2) – food(3) increased by 1.9%
- Gross margin, excluding fuel, increased by 63 basis points
STELLARTON, NS, Sept. 11, 2025 /CNW/ – Empire Company Limited (“Empire” or the “Company”) (TSX:EMP) today announced its financial results for the first quarter ended August 2, 2025. For the quarter, the Company recorded net earnings of $212 million ($0.91 per share) compared to $208 million ($0.86 per share) last year. On an adjusted basis for the quarter, the Company recorded net earnings of $212 million ($0.91 per share) compared to $219 million ($0.90 per share) last year.
“Fiscal 2026 is off to a solid start as we delivered another quarter of strong bottom line growth, the strongest quarterly earnings per share in our history, underscoring the fact our team’s execution continues to improve,” said Michael Medline, President & CEO, Empire.
|
(1) |
Adjusted Metrics include adjusted operating income, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net earnings, and adjusted EPS. The Company is excluding from its Adjusted Metrics: adjustment for costs incurred to plan and implement strategies to optimize the organization and improve efficiencies, and a one-time charge related to ending the mutual exclusivity agreement with Ocado Group plc (“Ocado”) (as described below under the heading “Adjusted Impacts on Net Earnings”). |
|
(2) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release. |
|
(3) |
Previously named – same-store sales, excluding fuel. |
Company Priorities
The Company is continuing to enhance data capabilities and deepen its understanding of its customers, allowing the Company to effectively capture emerging trends. The Company aims to grow total adjusted EPS over the long-term through net earnings growth and share repurchases. The Company intends to continue improving sales, gross margin (excluding fuel) and adjusted EBITDA margin by focusing on priorities such as:
Continued Focus on Stores:
Over recent years, the Company has accelerated investments in renovations, conversions, and new stores along with store processes, communications, training, technology and tools. Investing in the store network will remain a key priority, demonstrated by a sustained emphasis on renovations and continued new store expansion. The Own Brands program enhancement will remain a priority through increased distribution, product innovation and supporting Canadian suppliers.
The Company intends to invest capital in its store network and is on track with its plan to renovate approximately 20% to 25% of the network, which started in fiscal 2024 and continues through fiscal 2026. This capital investment includes important sustainability initiatives such as refrigeration system upgrades and other energy efficiency initiatives.
Enhanced Focus on Digital and Data:
The focus on digital and data will include continued e-commerce expansion, personalization and loyalty through Scene+ (see “Business Updates – E-Commerce” and “Business Updates – Scene+” for more information), improved space productivity and the continued improvement of promotional optimization. Space productivity will further enhance the customer experience by improving store layouts, optimizing category and product adjacencies and tailoring product assortment for each store. The advanced analytics tools built for promotional optimization will continue to be refined through the partnership between the advanced analytics team and category merchants. Enhancing digital and data capabilities will allow the Company to deliver personalized experiences to elevate its in-store and e-commerce experience for its customers. To further enhance our internal systems, the Company is currently transforming its legacy Enterprise Resource Planning (“ERP”) environment by migrating to a national SAP S/4HANA ERP platform (see “Business Updates – Technology Platform” for more information).
Efficiency and Cost Control:
The Company has significantly improved its efficiency and cost effectiveness through sourcing efficiencies, optimizing supply chain productivity and improving systems and processes. The Company will continue to focus on driving efficiency and cost effectiveness through initiatives related to sourcing of goods not for resale, supply chain productivity and the organizational structure. The Company has implemented several cost savings initiatives in the Voilà business, including pausing the opening of its fourth CFC and ending its mutual exclusivity with Ocado and continues to pursue other cost saving initiatives.
SUMMARY RESULTS – FIRST QUARTER
Comparative amounts have been rounded to the nearest million to conform with current year presentation.
|
(in millions of Canadian dollars, except per share amounts) |
August 2, 2025 |
August 3, 2024 |
|
|
13 Weeks |
13 Weeks |
$ Change |
|
|
Sales |
$ 8,258 |
$ 8,137 |
$ 121 |
|
Gross profit |
2,235 |
2,126 |
109 |
|
Operating income |
382 |
369 |
13 |
|
Adjusted operating income(1) |
382 |
383 |
(1) |
|
EBITDA(2) |
671 |
645 |
26 |
|
Adjusted EBITDA(1) |
671 |
659 |
12 |
|
Net earnings(3) |
212 |
208 |
4 |
|
Adjusted net earnings(1)(2)(3)(4) |
212 |
219 |
(7) |
|
Diluted earnings per share |
|||
|
EPS(3) |
$ 0.91 |
$ 0.86 |
$ 0.05 |
|
Adjusted EPS(1)(3)(4) |
$ 0.91 |
$ 0.90 |
$ 0.01 |
|
Diluted weighted average number of shares outstanding (in millions) |
233.4 |
242.3 |
(8.9) |
|
Dividend per share |
$ 0.22 |
$ 0.20 |
$ 0.02 |
|
August 2, 2025 |
August 3, 2024 |
|
|
13 Weeks |
13 Weeks |
|
|
Gross margin(2) |
27.1 % |
26.1 % |
|
EBITDA margin(2) |
8.1 % |
7.9 % |
|
Adjusted EBITDA margin(1) |
8.1 % |
8.1 % |
|
Same-store sales(2) growth |
0.8 % |
0.5 % |
|
Same-store sales(2) growth – food(5) |
1.9 % |
1.0 % |
|
Same-store sales(2) (decline) growth – fuel |
(13.4) % |
4.4 % |
|
Effective income tax rate |
26.0 % |
22.6 % |
|
(1) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release for a description of the types of costs and recoveries included. |
|
(2) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release. |
|
(3) |
Attributable to owners of the Company. |
|
(4) |
See “Adjusted Impacts on Net Earnings” section of this News Release. |
|
(5) |
Previously named – same-store sales, excluding fuel. |
FINANCIAL PERFORMANCE BY SEGMENT
Food Retailing
The following is a review of Empire’s Food retailing segment’s financial performance, comprising the consolidated results of Sobeys for the quarter ended August 2, 2025.
The following financial information is Sobeys’ contribution to Empire as the amounts are net of consolidated adjustments.
|
August 2, 2025 |
August 3, 2024 |
||
|
(in millions of Canadian dollars) |
13 Weeks |
13 Weeks |
$ Change |
|
Sales |
$ 8,258 |
$ 8,137 |
$ 121 |
|
Gross profit |
2,235 |
2,126 |
109 |
|
Operating income |
369 |
358 |
11 |
|
Adjusted operating income(1) |
369 |
372 |
(3) |
|
EBITDA(1) |
658 |
634 |
24 |
|
Adjusted EBITDA(1) |
658 |
648 |
10 |
|
Net earnings(2) |
205 |
197 |
8 |
|
Adjusted net earnings(1)(2) |
205 |
208 |
(3) |
|
(1) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release for a reconciliation of the adjusted metrics presented in this table. |
|
(2) |
Attributable to owners of the Company. |
The following table provides a breakdown of the Company’s total sales for the Food retailing segment:
|
August 2, 2025 |
August 3, 2024 |
||
|
(in millions of Canadian dollars) |
13 Weeks |
13 Weeks |
$ Change |
|
Food sales |
$ 7,791 |
$ 7,596 |
$ 195 |
|
Fuel sales |
467 |
541 |
(74) |
Investments and Other Operations
The following table provides a summary of operating income in the Investments and Other Operations segment:
|
August 2, 2025 |
August 3, 2024 |
||
|
(in millions of Canadian dollars) |
13 Weeks |
13 Weeks |
$ Change |
|
Crombie REIT(1) |
$ 15 |
$ 13 |
$ 2 |
|
Real estate partnerships |
2 |
3 |
(1) |
|
Other operations, net of corporate expenses |
(4) |
(5) |
1 |
|
Operating income |
$ 13 |
$ 11 |
$ 2 |
|
(1) |
Crombie Real Estate Investment Trust (“Crombie REIT”). |
Empire Company Limited Operating Results
Sales
Food sales for the quarter ended August 2, 2025 increased by 2.6% primarily driven by positive growth across the business, particularly in Full-Service and Discount banners and the Company’s national wholesale distribution network.
Fuel sales for the quarter ended August 2, 2025 decreased by 13.7% primarily driven by lower fuel prices due to the removal of the government carbon tax.
Gross Profit
Gross profit for the quarter ended August 2, 2025 increased by 5.1% primarily driven by higher sales, strong performance and operational discipline in Full-Service banners aimed at reducing shrink.
Gross margin for the quarter ended August 2, 2025 increased to 27.1% from 26.1% in the prior year, primarily due to strong performance in Full-Service banners as a result of disciplined execution and targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control. Gross margin, excluding the mix impact of fuel, increased by 63 basis points.
Operating Income
|
August 2, 2025 |
August 3, 2024 |
||
|
(in millions of Canadian dollars) |
13 Weeks |
13 Weeks |
$ Change |
|
Food retailing |
$ 369 |
$ 358 |
$ 11 |
|
Investments and other operations: |
|||
|
Crombie REIT |
15 |
13 |
2 |
|
Real estate partnerships |
2 |
3 |
(1) |
|
Other operations, net of corporate expenses |
(4) |
(5) |
1 |
|
13 |
11 |
2 |
|
|
Operating income |
$ 382 |
$ 369 |
$ 13 |
|
Adjustments: |
|||
|
E-commerce Exclusivity(1) |
– |
12 |
(12) |
|
Restructuring(1) |
– |
2 |
(2) |
|
– |
14 |
(14) |
|
|
Adjusted operating income(2) |
$ 382 |
$ 383 |
$ (1) |
|
(1) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release for a description of the types of costs and recoveries included. |
|
(2) |
See “Non-GAAP Financial Measures & Financial Metrics” section of this News Release. |
For the quarter ended August 2, 2025, operating income from …