By Robb M. Stewart
Empire Co.’s earnings came in stronger than expected for the latest quarter as the retailer and real-estate investor benefited from increased food sales and a gain from its exit from gas stations in western Canada.
The Nova Scotia-based company, which whose food retailing footprint in Canada includes the Sobeys, Safeway and Foodland banners, recorded fiscal first-quarter net earnings of 280.8 million Canadian dollars ($207.2 million), or C$1.03 a share, up from C$208.3 million, or C$0.71 a share, a year earlier.
Empire in late July completed the sale of 56 retail fuel sites to a subsidiary of Shell Canada for roughly C$100 million, which boosted earnings in the latest quarter by C$71.5 million. On an adjusted basis, earnings rose to C$0.78 a share for the three months to Aug. 5, beating the C$0.75 mean forecast of seven analysts polled by FactSet.
Sales for the quarter rose 1.7% to C$8.08 billion, slightly ahead of the C$8.01 billion analysts were expecting. Same-store sales, excluding fuel, were up 4.1% over last year.
President and Chief Executive Michael Medline said that while the market continues to face ongoing volatility, Empire began the fiscal year with a stronger top-line performance in its full-service banners, continued double-digit digital sales growth in its discount banner and a solid control over retail margins.
Write to Robb M. Stewart at [email protected]
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