Empire, Parent Company of Sobeys, Sees Increased Q4 Profit and Raises Dividend

Empire Company Ltd. has announced an increase in its quarterly dividend alongside its report of a rise in fourth-quarter profit compared to the previous year.

The grocery retailer, which owns Sobeys and Safeway among other banners, revealed that it will now pay a quarterly dividend of 18.25 cents per share, up from 16.5 cents per share.

Empire’s profit for the 13-week period ending on May 6 reached $182.9 million or 72 cents per share, surpassing the $178.5 million or 68 cents per share profit of the previous year.

The company’s fourth-quarter sales totaled $7.41 billion, a decrease from $7.84 billion in the same quarter last year, which included an additional week.

Same-store sales rose by 1.6% while same-store sales, excluding fuel sales, increased by 2.6%.

The company cited store improvements, lower supply chain costs, and the mixed impact of lower fuel sales as factors contributing to the increase in gross margins from 25.6% to 26.4% compared to the previous year.

Empire recently completed a multi-year growth plan, including store renovations, store expansions, the launch of the FreshCo discount banner, the Scene Plus loyalty program, and improvements to its in-house food brands.

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“With our six-year turnaround now complete, we have the tools, team, assets, and capabilities needed to delight our customers, compete, and succeed,” said Michael Medline, president and CEO of Empire and Sobeys, in a statement.