STELLARTON, N.S. — Empire Co. Ltd. says it earned a second-quarter profit of $173.4 million as its sales edged higher.
The parent company of grocery retailer Sobeys says the profit amounted to 73 cents per diluted share for the 13-week period ended Nov. 2 compared with a profit of $181.1 million or 72 cents per diluted share a year ago when it had more shares outstanding.
Sales for the quarter totalled $7.78 billion, up from $7.75 billion a year earlier.
The increase came as same-store sales rose 1.1 per cent. Same-store sales growth, excluding fuel sales, were up 1.8 per cent.
On an adjusted basis, Empire says it earned 73 cents per diluted share in its latest quarter, up from an adjusted profit of 71 cents per diluted share in the same quarter last year.
The average analyst estimate had been for an adjusted profit of 66 cents per share, according to data provided by LSEG Data & Analytics.
Empire said in a press release that it intends to continue investing in its store network, including renovating approximately 20 to 25 per cent of stores between fiscal 2024 and 2026.
During the quarter, Empire said it invested $149.2 million in capital expenditures, including renovations, construction of new stores, and other technological investments.
The company provided an update on its expansion of discount banner FreshCo in Western Canada, with 48 stores now operating in the region. Empire said it expects to achieve its original target of converting up to a quarter of its Safeway and Sobeys stores to FreshCo over the next several years.
This report by The Canadian Press was first published Dec. 12, 2024.
Companies in this story: (TSX:EMP.A)
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