STELLARTON, NOVA SCOTIA - Sobeys and its parent company, Empire Company Limited, has released financial results for its Q3 2015. While Sobeys sales declined due to retail divestiture, Empire's earnings were up due in part to the Canada Safeway acquisition.
In the third quarter, Empire recorded adjusted net earnings from continuing operations, net of non-controlling interest, of $120.3 million compared to $86.2 million in the third quarter last year, a 39.6 percent increase.
Sobeys stores reported sales of $5.94 billion for Q3 2015, a decrease of $63.9 million, or 1.1 percent over the same quarter last year. During Q3, Sobeys’ same-store sales increased 1.9 percent from the same period last year. Excluding the negative impact of oil prices on fuel sales, same-store sales would have increased 3.0 percent.
The company said in the report, “The decline in sales, as expected, was primarily a result of retail store divestitures, store closures associated with the network rationalization and the decline of oil prices impacting fuel sales. These negative pressures on sales have been partially offset by food inflation.”
Other highlights from the report include:
- EBITDA of $322.5 million compared to $188.9 million last year, up $133.6 million or 70.7 percent.
- Adjusted EBITDA (1) of $310.1 million compared to $279.9 million last year, up $30.2 million or 10.8 percent.
- Net earnings from continuing operations (2) of $123.6 million compared to $6.4 million last year, an increase of $117.2 million.
- Adjusted net earnings from continuing operations (1)(2) of $120.3 million compared to $86.2 million last year, a 39.6 percent increase.
- Adjusted EPS (3) from continuing operations (fully diluted) of $1.30 compared to $0.94 last year, a 38.3 percent increase.
- Net earnings from investments and other operations of $28.1 million compared to $5.5 million last year, an increase of $22.6 million.
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