Empire Company (TSX: EMP.A) this morning reported net earnings of $181.1 million for its fiscal second quarter of 2024, a decline from $189.9 million in the prior year. The results amount to earnings of $0.72 per share.
Sales for the quarter, which amount to the 13 weeks ended November 4, 2023, amounted to $7.75 billion, an improvement over the $7.64 billion reported in the year ago period.
Gross profit meanwhile came in at $2.0 billion, or 25.8%, up from 25.6% last year. Margins are said to have improved due to lower fuel sales impacting the sales mix, a result of the sale of its western fuel business in the first quarter, as well as lower distribution costs.
The company also noted that its internal food inflation figure was “slightly below the reported consumer price index for food purchased from stores of 6.1%.”
EBITDA for the period amounted to $580.4 million, while adjusted EBITDA came in at $576.6 million. Share buybacks as of November 4 have amounted to 3.3 million Class A shares, with a total of $122.5 million spent on the buybacks. In June, the TSX approved a program that would see up to $400 million worth of shares repurchased over a 12 month period.
“While higher interest rates and overall economic uncertainty are impacting customer purchasing behaviours, the fundamentals of our business remain strong. We continue to attract more customers in our stores, our promotions are constantly improving, and we continue to protect our margins,” commented Michael Medline, CEO of Empire.
READ: Sobeys Expands Stock Buyback Program as Food Bank Demand Soars Across Canada
In terms of outlook, Empire is focused on improving sales and margins through a continued focus on stores, an expanded focus on digital and data, and efficiencies found through the sourcing of goods and its organizational structure. A restructuring process began in the first quarter, which year to date has resulted in charges of $19.5 million. Capital expenditures for the year meanwhile are estimated at $775 million, of which half is related to renovations and new store expansion.
Empire last traded at $38.94 on the TSX.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
