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Sobeys parent Empire reports higher Q1 profit ‘despite ongoing volatility’

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Empire Co. Ltd. says it earned $261.0 million in its latest quarter, up from $187.5 million in the same quarter last year, boosted by the sale of its 56 gas stations in Western Canada to Shell Canada.

The grocer, which owns Sobeys, Safeway and other banners, says the profit amounted to $1.03 per share for the quarter ended Aug. 5, up from a profit of 71 cents per share a year earlier.

Sales in what was Empire’s first quarter totalled $8.08 billion, up from $7.94 billion in the same quarter last year.

Same-store sales were up 3.0 per cent, while same-store sales, excluding fuel, were up 4.1 per cent.

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Empire chief executive Michael Medline said the company’s 2024 financial year is off to a good start.

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“Despite the ongoing volatility that the market continues to face, the results we delivered in Q1 demonstrate our team’s ability to consistently execute, regardless of the economic environment,” Medline said in a statement.

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Empire completed the sale of its gas stations in Western Canada to Shell for $100 million during the quarter. The retailer said the deal boosted its quarterly results by $71.5 million

Empire also took a $7.1-million restructuring charge in the quarter and recorded a $400,000 insurance recovery related to a cybersecurity incident in November 2022.

On an adjusted basis, Empire says it earned 78 cents per share in its latest quarter, up from an adjusted profit of 71 cents per share a year earlier.

The average analyst estimate had been for an adjusted profit of 75 cents per share, based on estimates compiled by financial markets data firm Refinitiv.

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