Empire’s Q1 net earnings jump 9.9% to $233 million

STELLARTON, N.S. — Empire Company Limited, parent of Sobeys, posted net earnings of $233 million in the first quarter ended Aug. 1, up 9.9% from $212 million a year earlier, as diluted EPS rose 14.3% to a first-quarter record of $1.04.

Sales climbed 2.6% to $8.48 billion. Food sales were up 1.7% on full-service and discount banners; fuel sales jumped 18.4% on higher pump prices. Same-store sales rose 2.2% overall, with food same-store up 1.2% and fuel same-store up 18.9%. Gross margin slipped to 26.8% from 27.1% on fuel mix and supply-chain fuel costs; excluding fuel mix, margin was flat.

“We delivered a strong first quarter, driven by disciplined execution across the business,” CEO Pierre St-Laurent said. “Our banners are competing effectively across the country, and our results reflect the strength of our operations, increasing productivity and efficiency, and our continued focus on delivering value for Canadians.” Empire said internal food inflation stayed below the CPI for food purchased from stores.

The quarter closed the Mayrand Food Group buy in Greater Montréal, opened the first two Atlantic FreshCo discount stores, and kept share buybacks running. Tariffs and retaliatory duties remain a watch item for import costs and shelf prices — even as Canada’s second-largest grocer prints higher earnings on affordability-focused shoppers.