Empire Co. earnings lifted by Sobeys sales
Empire Co., parent company of the Sobeys grocery chain, reported operating profits of $70.3 million Thursday as its food retailing business remained strong despite higher prices.
Nova Scotia-based Empire said its first-quarter earnings, the equivalent of $1.07 a share before special items, were up 16 per cent from a year-ago $60.4 million, or 92 cents a share.
Including one-time capital gains, Empire earned $75.1 million, down from $142.3 million in the year prior.
Analysts on average had forecast earnings of $1.10 a share before special items, according to Reuters Estimates.
Revenues were up 7.4 per cent to $3.8 billion, stemming from sales growth in Empire's mainstay food-retailing arm. Same-store sales at Sobeys outlets advanced three per cent.
Income from Empire's tiny real estate segment, accounting for less than one per cent of revenues, withered.
"The significant increase in year-over-year earnings contribution from Sobeys … more than offset an expected lower earnings contribution from our real estate division," CEO Paul Sobey said.
Empire operates Sobeys outlets across Canada. Empire also has grocery stores in the Thrifty Foods chain, which has outlets in the B.C. Lower Mainland and on Vancouver Island.
Food prices worldwide have nearly doubled on average in the last three years, according to the World Bank.
Empire's class A shares closed down 66 cents Thursday at $47.20 on the TSX.
0 comments:
Post a Comment