Empire Co. Ltd. reports a significant increase in earnings for its latest quarter, driven by the sale of its 56 gas stations in Western Canada to Shell Canada. The company earned $261.0 million, compared to $187.5 million in the same quarter last year.
The grocer, known for its brands like Sobeys and Safeway, recorded a profit of $1.03 per share for the quarter ended Aug. 5, up from $0.71 per share in the previous year.
The company’s total sales for the quarter were $8.08 billion, compared to $7.94 billion in the same quarter last year.
Empire’s same-store sales saw a growth of 3.0%, while same-store sales excluding fuel increased by 4.1%.
Michael Medline, CEO of Empire, expressed satisfaction with the company’s performance, stating that the financial year 2024 is off to a good start.
“Despite the ongoing volatility in the market, our Q1 results demonstrate our team’s consistent ability to execute, regardless of the economic environment,” said Michael Medline in a statement.
Empire completed the sale of its gas stations in Western Canada to Shell for $100 million during the quarter, resulting in a $71.5 million boost to its quarterly results.
The company also incurred a $7.1 million restructuring charge in the quarter and received a $400,000 insurance recovery related to a cybersecurity incident in November 2022.
On an adjusted basis, Empire’s earnings per share for the quarter were 78 cents, compared to 71 cents in the previous year. Analysts had estimated an adjusted profit of 75 cents per share.
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