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Sobeys owner Empire Co Ltd posts higher profit on Safeway buyThursday, September 11, 2014 > 09:55:19
Empire Co. Ltd., parent of supermarket chain Sobeys Inc., has reported a big increase in first-quarter net profit amid a more than 35% increase in revenue as a result of its acquisition of Canada Safeway.
The Nova Scotia-based concern said Wednesday after markets closed that consolidated net earnings, net of non-controlling interests, were $123.1 million or $1.33 per diluted share in its fiscal 2015 first quarter. That was up from $65 million or 95 cents a share a year earlier when the company reported a loss of $17.6 million from discontinued operations.
Revenue in the three months to Aug. 2 rose to $6.22 billion from just under $4.6 billion in the prior-year period, reflecting the impact of its acquisition of Canada Safeway among other initiatives.
President and CEO Marc Poulin said the company was pleased with the results as Sobeys achieved improved same-store sales growth of 1.3% and significant growth in EBITDA “in the face of a challenging market.”
“Growth in consolidated sales in the first quarter of 35.4% and in adjusted net earnings of 46.8% largely reflects the impact of the acquisition of Canada Safeway combined with Sobeys’ sales and merchandising initiatives . . . ” he said in a statement accompanying the results.
“Going forward we remain focused on completing the successful integration of the Canada Safeway business and on the ongoing promotion of our Better Food for All culture, while continuing to secure operational efficiencies and cost reductions across the organization.”