Empire Company Limited announced on Thursday its financial results for the first quarter ended August 2, 2025, saying it was the strongest quarterly earnings per share in its history.
For the quarter, the company recorded net earnings of $212 million ($0.91 per share) compared to $208 million ($0.86 per share) last year. On an adjusted basis for the quarter, the Company recorded net earnings of $212 million ($0.91 per share) compared to $219 million ($0.90 per share) last year.
“Fiscal 2026 is off to a solid start as we delivered another quarter of strong bottom line growth, the strongest quarterly earnings per share in our history, underscoring the fact our team’s execution continues to improve,” said Michael Medline, President & CEO, Empire.
Empire Company Limited is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $31 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 129,000 people.
Its banners include brands such as Longo’s, Safeway, Farm Boy, FreshCo, IGA.
The company said it is continuing to enhance data capabilities and deepen its understanding of its customers, allowing the company to effectively capture emerging trends.
“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,” it said.
“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.”
SUMMARY RESULTS – FIRST 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) | August 2, 2025 | August 3, 2024 | |
| 13 Weeks | 13 Weeks | $ Change | |
| Sales | $ 8,258 | $ 8,137 | $ 121 |
| Gross profit | 2,235 | 2,126 | 109 |
| Operating income | 382 | 369 | 13 |
| Adjusted operating income(1) | 382 | 383 | (1) |
| EBITDA(2) | 671 | 645 | 26 |
| Adjusted EBITDA(1) | 671 | 659 | 12 |
| Net earnings(3) | 212 | 208 | 4 |
| Adjusted net earnings(1)(2)(3)(4) | 212 | 219 | (7) |
| Diluted earnings per share | |||
| EPS(3) | $ 0.91 | $ 0.86 | $ 0.05 |
| Adjusted EPS(1)(3)(4) | $ 0.91 | $ 0.90 | $ 0.01 |
| Diluted weighted average number of shares outstanding (in millions) | 233.4 | 242.3 | (8.9) |
| Dividend per share | $ 0.22 | $ 0.20 | $ 0.02 |
| August 2, 2025 | August 3, 2024 | |
| 13 Weeks | 13 Weeks | |
| Gross margin(2) | 27.1 % | 26.1 % |
| EBITDA margin(2) | 8.1 % | 7.9 % |
| Adjusted EBITDA margin(1) | 8.1 % | 8.1 % |
| Same-store sales(2) growth | 0.8 % | 0.5 % |
| Same-store sales(2) growth – food(5) | 1.9 % | 1.0 % |
| Same-store sales(2) (decline) growth – fuel | (13.4) % | 4.4 % |
| Effective income tax rate | 26.0 % | 22.6 % |
| (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. |
“Since fiscal 2018, the Company has been expanding its FreshCo discount banner to Western Canada and its significant growth has been driven by store conversions and regional expansion. The value proposition and strong multicultural assortment, along with the addition of the Scene+ loyalty program, has supported the growth and expansion of the Discount banner,” said Empire.
“The Company opened two new FreshCo stores in Western Canada during the quarter and one subsequent to the end of the quarter. As at September 10, 2025, FreshCo has 51 stores operating in Western Canada and expects to open an additional four stores in fiscal 2026. The Company expects to have opened 65 FreshCo stores in Western Canada over the next several years.”
“For fiscal 2026, capital spend is expected to be approximately $850 million, with approximately half of this investment allocated to renovations and new store expansion (including a 1.5% increase in store footprint expansion from new stores), 25% allocated to IT and business development projects and the remainder allocated to logistics and sustainability. By the end of fiscal 2026, the Company expects to complete the network renovations of approximately 20% to 25%, which began in fiscal 2024.”
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