STELLARTON, NOVA SCOTIA - Sobeys' parent company, Empire Company Limited, released a robust Q2 2015 financial report on Friday, December 12th, 2014, revealing across the board double digit increases in sales, EBITDA and net income. The impact of the recent acquisition of Safeway Canada played heavily into these gains, according to Marc Poulin, President and CEO of Empire.
"We are pleased with our second quarter results and our progress year-to-date,” he shared. Growth in consolidated sales in the second quarter of 35.8 percent and in adjusted net earnings from continuing operations of 53.7 percent largely reflects the impact of the acquisition of Canada Safeway combined with Sobeys' sales and merchandising initiatives, including new and innovative commercial programs as part of the Company's purpose to help Canadians Eat Better, Feel Better, and Do Better.”
"We realized synergies from the Canada Safeway acquisition of $31.5 million in the quarter and are on schedule with our integration plan,” Poulin continued. “We remain focused on the ongoing promotion of our food-focused culture, while continuing to secure operational efficiencies and cost reductions across the organization."
Some highlights from Empire's financial report include:
- A 35.8% increase in sales to $5,995.1 million.
- A 64.8% increase in EBITDA to $324.3 million, compared to $196.8 million from last year.
- A 49.6% increase in adjusted EBITDA to $332.2 million compared to $222.0 million from last year.
- A 93.2% increase in net earnings from continuing operations, net of non-controlling interest, to $116.9 million compared to $60.5 million from last year.
- A 53.7% increase in adjusted net earnings from continuing operations, net of non-controlling interest, to $128.2 million compared to $83.4 million from last year.
- A 13.9% increase in adjusted EPS from continuing operations (fully diluted) to $1.39 compared to $1.22 last year.
Regarding Sobeys' performance specifically, some highlights from the Q2 2015 report include:
- A 1.7% increase in same-store sales.
- A 49.1% increase in gross profit to $1,480.9 million.
- A 58.6% increase in Sobeys' EBITDA contribution to Empire to $301.5 million (5.03 percent of sales), compared to $190.1 million (4.30 percent of sales) in the same quarter last year.
- A 49.5% increase in Sobeys' adjusted EBITDA contribution to Empire to $309.4 million (5.16% of sales), compared to $206.9 million (4.68% of sales) from the same period last year.
- A 78.3% increase in net earnings to $100.4 million compared to $56.3 million in the same period last year.
- A 50.7% increase in adjusted net earnings to $111.7 million compared to $74.1 million from the same period last year.
Congratulations on this strong showing in Q2, Empire and Sobeys!
