Empire Company
Summary
- Empire's key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate.
- Sobeys Inc. has more than 115 years of experience serving customers in the food-retail business.
- Sobeys Inc. is operating across all 10 provinces in Canadian with approximately 1600 stores.
Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate.
With approximately $31.6 billion in annual sales and $16.4 billion in assets, Empire Company Limited and its subsidiaries, franchisees and affiliates employ approximately 131,000 people.
Sobeys Inc., has more than 115 years of experience serving customers in the food-retail business. Sobeys Inc. is one of only two national Canadian grocers operating across all 10 provinces with approximately 1600 stores.
Financial Highlights
Fiscal 2024 Second Quarter Results
Empire Company Limited announced its financial results for the second quarter ended November 4, 2023.1
Dec. 14, 2023; For the quarter, the Company recorded net earnings of $181.1 million ($0.72 per share) compared to $189.9 million ($0.73 per share) last year. For the quarter, the Company recorded adjusted net earnings of $178.3 million ($0.71 per share) compared to $189.9 million ($0.73 per share) last year.
For the quarter ended November 4, 2023, EBITDA decreased to $580.4 million from $584.2 million in the prior year mainly as a result of the same factors affecting operating income (excluding the increase in depreciation and amortization of $17.7 million). EBITDA margin decreased to 7.5% from 7.6% in the prior year.
For the quarter ended November 4, 2023, adjusted EBITDA decreased to $576.6 million from $584.2 million in the prior year. Adjusted EBITDA margin decreased to 7.4% from 7.6% in the prior year.
The Company invested $134.6 million in capital expenditures for the quarter ended November 4, 2023, (November 5, 2022 – $254.7 million) including renovations and construction of new stores, investments in advanced analytics technology and other technology systems, FreshCo stores in Western Canada and Voilà CFCs.
On June 21, 2023, the Company renewed its NCIB by filing a notice of intention with the TSX to purchase for cancellation up to 12,600,000 Class A shares representing approximately 9.0% of the public float of 139,497,542 Class A shares outstanding as of June 19, 2023. The Company intends to repurchase approximately $400.0 million of Class A shares in fiscal 2024.
The NCIB expires on July 1, 2024. As of November 4, 2023, the Company purchased 3,305,547 Class A shares (November 5, 2022 – 2,885,713) under this filing at a weighted average price of $37.04 (November 5, 2022 - $37.52) for a total consideration of $122.5 million (November 5, 2022 - $108.3 million).
The Board of Directors declared a quarterly dividend of $0.1825 per share on both the Non-Voting Class A shares and the Class B common shares that will be payable on January 31, 2024 to shareholders of record on January 15, 2024.
Company Overview
Empire’s key businesses and financial results are segmented into two reportable segments: (1) Food retailing; and (2) Investments and other operations. With approximately $31.6 billion in annual sales and $16.4 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 131,000 people.
Empire’s Food retailing segment is carried out through Sobeys, a wholly-owned subsidiary. Proudly Canadian, with headquarters in Stellarton, Nova Scotia, Sobeys has been serving the food shopping needs of Canadians since 1907. Sobeys owns, affiliates or franchises more than 1,600 stores in all 10 provinces under retail banners that include Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy, Longo’s and Lawtons Drugs, operates grocery e-commerce under the banners Voilà, IGA.net and ThriftyFoods.com, and operates more than 350 retail fuel locations.
Stores Brands
- Sobeys
- Safeway
- Foodland
- IGA West
- IGA extra
- Les Marchés Tradition
- Thrifty Foods
- FreshCo
- CHALO! FreshCo
- Lawtons Drugs
- Bonichoix
- Needs
- Voilà
Company History
Empire Company Limited was incorporated on February 12, 1963.2
| Year | Milestone |
| 1963 | Empire Company Limited was incorporated on February 12, 1963. |
| 1976 | Purchased Lawtons Drug Stores Limited, which operates 18 retail drug stores in Nova Scotia. |
| 1981 | In November '80 and June '81, Empire Company Limited acquires control of Sobey Stores Limited through purchase of Sobey Holdings Limited. |
| 1983 | In February 1983, Empire Company Limited increases its ownership in Hannaford Bros. Co. (a U.S. food retailer) to 25%. In December, Empire Company Limited shares split on a three for two basis. |
| 1987 | In June 1987, Empire Company Limited purchases the outstanding public float of Sobey Stores Limited, making it a 100% subsidiary of Empire Company Limited. Also in June, Empire Company Limited acquires Famous Players' 50% interest in Empire Company Limited Theatres joint venture operations, making this a 100% owned subsidiary. |
| 1988 | In May 1988, Empire Company Limited holds a 25% interest in Provigo. Empire Company Limited purchases an additional 22% interest in Wajax resulting in a total of 45%. |
| 1989 | In June, Empire Company Limited repurchases the public interest in Atlantic Shopping Centres, making it once more a 100% owned subsidiary, for $22 million paid in Non-Voting shares of Empire Company Limited. |
| 1993 | In December 1993, the real estate division increases it ownership of Halifax Developments Limited to 100% from 36% at a cost of $12.7 million. |
| 1998 | In December 1998, after acquiring the Oshawa Group for $1.5 billion, Sobeys Inc. became a public company on the Toronto Stock Exchange, with Empire Company Limited owning a 62% interest in Sobeys. |
| 2001 | In January 2001, the real estate division purchases a 35.7% interest in Genstar Development Partnership for $29 million. |
| 2004 | In February 2004, Sobeys acquires Commisso's Food Markets for $61 million and the real estate division acquires Commisso's real estate assets for $42.5 million. |
| 2005 | In September, Empire Company Limited Theatres acquires 27 movie theatres for $83 million. |
| 2006 | In August 2006, Sobeys acquires Achille de ICI Chevrotiöre Ltée, which included 25 stores in northern Québec and Ontario as well as a distribution centre in Rouyn-Noranda for $79.2 million. |
| 2007 | In September, Sobeys acquires Thrifty Foods for $253.6 million. Thrifty's assets include 20 full-service supermarkets, a distribution centre and a wholesale division on Vancouver Island and the lower mainland of British Columbia. |
| 2012 | Sobeys initiates an organizational realignment to optimize productivity and fully capitalize on scale. Sobeys purchases 236 retail gas locations for $214.9 million in Québec and Atlantic Canada. |
| 2018 | In December 2018, Empire Company Limited acquired Farm Boy one of the most exciting, fastest growing and successful food retailers in Canada |
| 2020 | In June 2020, Empire Company Limited introduces the future of online grocery home delivery to the Greater Toronto Area. |
