<p> Sobeys’ parent company Empire Company Limited reported that net profits sunk to C$40,000 or nil following its acquisition of Canada Safeway, compared to C$74.1 million a year earlier, according to Reuters. However, total sales, including those from the Canada Safeway acquisition, rose to C$6.02 billion, up C$1.73 billion or 40.4% from the third quarter last year, according to a press release. Reuters reports that the fall in quarterly profit was hurt by higher inventory losses, including those related to Sobeys’ <I>Eat Better, Feel Better, Do Better</i> campaign, and higher costs due to a weaker Canadian dollar.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Speaking with analysts during a conference call on Thursday, Marc Poulin, President and CEO, commented on the same-store sales trend at Safeway, noting that the acquisition was a “little bit below what we would have liked.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Poulin said, “We are clearly taking advantage of what opportunities we have with direct merchandising programs to address some concerns we have in some categories. And we’re diligently working on the overall picture from a Safeway point-of-view so it’s not only a question of integration but we’re also dynamically running the business.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The company also plans to consolidate its produce and meat categories into one of its existing conventional distribution centers to further improve efficiencies.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> In the report, Poulin said that Empire is “focused on securing operational efficiencies and reducing costs across the network” and that the company remains confident in its ability to secure $200 million in annual run-rate cost synergies over a three-year period.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Safeway completed the $5.7 billion sale of its Canadian operations to Sobeys in November.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> At 1:20 pm EDT today, Empire’s shares fell C$2.55 to C$65.55, a change in 3.7%.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> As Sobeys adjusts his operations to better accommodate its newly acquired Canada Safeway assets, will we see a better improvement in its fourth quarter results?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we continue following Sobeys and Empire’s fiscal year.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.sobeyscorporate.com/en/Home.aspx" target="_new"> Sobeys </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.empireco.ca/en/home/investorcentre/default.aspx" target="_new">Empire Company Limited </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
