Prior year EPS and adjusted EPS of $0.73
Sales of $7,995 million, an increase of 2.8%
Food sales increased by 3.4%; Same-store sales(2) - food(3) increased by 2.5%
Gross margin, excluding fuel, increased by 14 basis points
STELLARTON, NS, Dec. 11, 2025 /CNW/ - Empire Company Limited ("Empire" or the "Company") (TSX:EMP) today announced its financial results for the second quarter ended November 1, 2025. For the quarter, the Company recorded net earnings of $159 million ($0.69 per share) compared to $173 million ($0.73 per share) last year.
"Our core business is performing well, with 2.5% same-store sales growth," said Pierre St-Laurent, President & CEO, Empire. "This growth was supported by all our formats, with Full Service achieving more than 2% same-store sales growth and Discount maintaining its momentum and market share gains in its channel."
(1)
Adjusted Metrics include adjusted operating income, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted net earnings, and adjusted EPS. During the second quarters of fiscal 2026 and fiscal 2025, there were no adjusting items.
(2)
See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release.
(3)
Previously named, same-store sales, excluding fuel.
Company Priorities
The Company is continuing to enhance data capabilities and deepen its understanding of its customers, allowing the Company to effectively capture emerging trends. The Company aims to grow total adjusted EPS over the long-term through net earnings growth and share repurchases. The Company intends to continue improving sales, gross margin (excluding fuel) and adjusted EBITDA margin by focusing on priorities such as:
Continued Focus on Stores:
Over recent years, the Company has accelerated investments in renovations, conversions, and new stores along with store processes, communications, training, technology and tools. Investing in the store network will remain a key priority, demonstrated by a sustained emphasis on renovations and continued new store expansion. The Own Brands program enhancement will remain a priority through increased distribution, product innovation and supporting Canadian suppliers.
The Company intends to invest capital in its store network and is on track with its plan to renovate approximately 20% to 25% of the network, which started in fiscal 2024 and continues through fiscal 2026. This capital investment includes important sustainability initiatives such as refrigeration system upgrades and other energy efficiency initiatives.
Enhanced Focus on Digital and Data:
The focus on digital and data will include continued e-commerce expansion, personalization and loyalty through Scene+ (see "Business Updates - E-Commerce" and "Business Updates - Scene+" for more information), improved space productivity and the continued improvement of promotional optimization. Space productivity will further enhance the customer experience by improving store layouts, optimizing category and product adjacencies and tailoring product assortment for each store. The advanced analytics tools built for promotional optimization will continue to be refined through the partnership between the advanced analytics team and category merchants. Enhancing digital and data capabilities will allow the Company to deliver personalized experiences to elevate its in-store and e-commerce experience for its customers. To further enhance our internal systems, the Company is currently transforming its legacy Enterprise Resource Planning ("ERP") environment by migrating to a national SAP S/4HANA ERP platform (see "Business Updates - Technology Platform" for more information).
Efficiency and Cost Control:
The Company has significantly improved its efficiency and cost effectiveness through sourcing efficiencies, optimizing supply chain productivity and improving systems and processes. The Company will continue to focus on driving efficiency and cost effectiveness through initiatives related to sourcing of goods not for resale, supply chain productivity and the organizational structure. The Company has implemented several cost savings initiatives in the Voilà business, including pausing the opening of its fourth Customer Fulfilment Center ("CFC") and ending its mutual exclusivity with Ocado and continues to pursue other cost saving initiatives.
SUMMARY RESULTS - SECOND QUARTER
Comparative amounts have been rounded to the nearest million to conform with current year presentation.
(in millions of Canadian dollars, except per share amounts)
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
13 Weeks
13 Weeks
$ Change
26 Weeks
26 Weeks
$ Change
Sales
$ 7,995
$ 7,778
$ 217
$ 16,253
$ 15,915
$ 338
Gross profit
2,147
2,065
82
4,382
4,191
191
Operating income
295
319
(24)
677
688
(11)
Adjusted operating income(1)
295
319
(24)
677
702
(25)
EBITDA(2)
583
601
(18)
1,254
1,246
8
Adjusted EBITDA(1)
583
601
(18)
1,254
1,260
(6)
Net earnings(3)
159
173
(14)
371
381
(10)
Adjusted net earnings(1)(2)(3)(4)
159
173
(14)
371
392
(21)
Diluted earnings per share
EPS(3)
$ 0.69
$ 0.73
$ (0.04)
$ 1.60
$ 1.58
$ 0.02
Adjusted EPS(1)(3)(4)
$ 0.69
$ 0.73
$ (0.04)
$ 1.60
$ 1.63
$ (0.03)
Diluted weighted average number of shares outstanding (in millions)
231.4
239.1
(7.7)
232.5
240.9
(8.4)
Dividend per share
$ 0.22
$ 0.20
$ 0.02
$ 0.44
$ 0.40
$ 0.04
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
13 Weeks
13 Weeks
26 Weeks
26 Weeks
Gross margin(2)
26.9 %
26.5 %
27.0 %
26.3 %
EBITDA margin(2)
7.3 %
7.7 %
7.7 %
7.8 %
Adjusted EBITDA margin(1)
7.3 %
7.7 %
7.7 %
7.9 %
Same-store sales(2) growth
2.0 %
1.1 %
1.3 %
0.7 %
Same-store sales(2) growth - food(5)
2.5 %
1.8 %
2.1 %
1.5 %
Same-store sales(2) decline - fuel
(5.5) %
(12.6) %
(9.7) %
(4.4) %
Effective income tax rate
26.4 %
26.1 %
26.2 %
24.2 %
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release for a description of the types of costs and recoveries included.
(2)
See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release.
(3)
Attributable to owners of the Company.
(4)
See "Adjusted Impacts on Net Earnings" section of this News Release.
(5)
Previously named, same-store sales, excluding fuel.
FINANCIAL PERFORMANCE BY SEGMENT
Food Retailing
The following is a review of Empire's Food retailing segment's financial performance, comprising the consolidated results of Sobeys for the quarter and year-to-date ended November 1, 2025.
The following financial information is Sobeys' contribution to Empire as the amounts are net of consolidated adjustments.
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
26 Weeks
26 Weeks
$ Change
Sales
$ 7,995
$ 7,778
$ 217
$ 16,253
$ 15,915
$ 338
Gross profit
2,147
2,065
82
4,382
4,191
191
Operating income
278
291
(13)
647
649
(2)
Adjusted operating income(1)
278
291
(13)
647
663
(16)
EBITDA(1)
566
573
(7)
1,224
1,207
17
Adjusted EBITDA(1)
566
573
(7)
1,224
1,221
3
Net earnings(2)
148
151
(3)
353
348
5
Adjusted net earnings(1)(2)
148
151
(3)
353
359
(6)
(1)
See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release for a reconciliation of the adjusted metrics presented in this table.
(2)
Attributable to owners of the Company.
The following table provides a breakdown of the Company's total sales for the Food retailing segment:
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
26 Weeks
26 Weeks
$ Change
Food sales
$ 7,540
$ 7,294
$ 246
$ 15,331
$ 14,890
$ 441
Fuel sales
455
484
(29)
922
1,025
(103)
Investments and Other Operations
The following table provides a summary of operating income in the Investments and Other Operations segment:
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
26 Weeks
26 Weeks
$ Change
Crombie REIT(1)
$ 13
$ 31
$ (18)
$ 28
$ 44
$ (16)
Real estate partnerships
2
2
-
4
5
(1)
Other operations, net of corporate expenses
2
(5)
7
(2)
(10)
8
Operating income
$ 17
$ 28
$ (11)
$ 30
$ 39
$ (9)
(1)
Crombie Real Estate Investment Trust ("Crombie REIT").
Empire Company Limited Operating Results
Sales
Food sales for the quarter ended November 1, 2025 increased by 3.4% primarily driven by positive growth across the business, particularly in the Full-Service banners, the Company's national wholesale distribution network, and in the Discount banner.
Fuel sales for the quarter ended November 1, 2025 decreased by 6.0%, primarily driven by lower fuel prices due to the removal of the government carbon tax.
Gross Profit
Gross profit for the quarter ended November 1, 2025 increased by 4.0% primarily driven by higher food sales, strong performance and operational discipline in Full-Service and Discount banners.
Gross margin for the quarter ended November 1, 2025 increased to 26.9% from 26.5% in the prior year, primarily due to strong performance in Full-Service and Discount banners as a result of disciplined execution and targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control, partially offset by the mix impact of higher wholesale distribution sales.
Excluding the mix impact of fuel sales, gross margin for the quarter ended November 1, 2025 was 14 basis points higher than in the prior year.
Operating Income
Nov 1, 2025
Nov 2, 2024
Nov 1, 2025
Nov 2, 2024
(in millions of Canadian dollars)
13 Weeks
13 Weeks
$ Change
26 Weeks
26 Weeks
$ Change
Food retailing
$ 278
$ 291
$ (13)
$ 647
$ 649
$ (2)
Investments and other operations:
Crombie REIT
13
31
(18)
28
44
(16)
Real estate partnerships
2
2
-
4
5
(1)
Other operations, net of corporate expenses
2
(5)
7
(2)
(10)
8
17
28
(11)
30
39
(9)
