The Nova Scotia-based company best known for its Sobeys and Thrifty Foods grocery stores showed a sharp jump in profit and revenue in its most recent quarter, thanks in part to the acquisition of more than 200 retail gas locations and convenience stores.
Empire Company Ltd. says its first-quarter profit rose to $108.9 million or $1.60 per share, up from $89.2 million or $1.31 per share a year earlier. Revenue for the company was up 9.7 per cent to $4.56 billion, largely because of the addition of 236 retail gas locations and convenience stores in eastern Canada.
Sobeys, which has grown into one of Canada's biggest grocery retailers through a combination of acquisitions and internal growth, bought the filling stations in Quebec and Atlantic Canada from Shell Canada.
Empire already had about 40 stations in Atlantic Canada as well as a handful of convenience stores in Quebec prior to the deal with Shell announced in December.
Excluding the acquisitions, Empire's revenue for the quarter ended Aug. 4 was up 3.5 per cent from a year earlier.
In the comparable period last year, Empire had $4.1 billion of revenue and 89.2 million or $1.31 of net earnings net of minority interest.
The Sobey's retail division accounted for most of Empire's revenue - $4.51 billion in the first quarter of the current financial year, up $145.8 million from the same time last year after excluding the recently acquired locations.
"Our solid first quarter results were driven by Sobeys' operational performance, which demonstrates that our food-focused strategy is resonating with more and more customers," Empire chief executive Paul Sobey said in a statement.
Food retailing accounted for $99.6 million of Empire's adjusted net earnings, net of minority interest, while investments and other operations accounted for $3.8 million. Total adjusted EPS was $1.52, up from $1.25 a year earlier.
Empire's publicly traded A shares gained 87 cents to $58.45 on the Toronto Stock Exchange. The company remains controlled by the founding family through their multiple-vote B shares, which aren't listed.
