STELLARTON – Empire had “record operating earnings” in 2010, largely due to strong performances of Sobeys’ 1,300 stores across the country, Paul Sobey told shareholders on Wednesday.
Sobey, the chief executive officer of Empire, reported a net income of $89.2 million ($1.31 per share) in its first quarter, which ended Aug. 6, up from $86.3 million ($1.26 per share) in the first quarter last year.
In his address to shareholders, Sobey said the Stellarton-based company, which operates the Sobeys grocery store chain and has interests in real estate and movie theatres, will remain focused on its core strengths in the coming year – a passion for food and developing its real estate interests. It’s that strategy, he said, that has proven successful over the past year.
“We are pleased with our start to fiscal 2012 as both Sobeys and our investments and other operations segments posted increased earnings in a very competitive environment,” Sobey said. “Sobeys’ improved merchandising and execution, combined with ongoing cost and productivity intitatives, continue to fuel our ability to sustain growth.”
Empire will transition to International Financial Reporting Standards, effective in the first quarter of fiscal 2012, which means all comparitive figures for fiscal 2011 that were previously reported in the consolidated financial statements prepared in accordance with Canadian Generally Accepted Accounting Principals have be restated to conform with the new IFRS standards.
That means that Empire now has two reportable operating segments – the food retailing segment of Sobeys and the investments and other operations segments, the principal components of which include Crombie REIT, Genstar Development Parternship and Empire Theatres Ltd.
First Quarter Highlights Include:
• Sales of $4.15 billion, up $128.3 million or 3.2 per cent
• Sobeys’ same-store sales increased 1.7 per cent, compared to the first quarter last year
• Operating income of $150.4 million, compared to $148.5 last year
• Effective income tax rate of 27.1 per cent versus 28.9 per cent in quarter one last year
• Earnings before capital losses and other items, net of minority interest, of $90.1 million ($1.32 per share) compared to $86.3 million ($1.31 per share) compared to $86.3 million ($1.26 per share) last year
• Funded debt to total capital ratio of 25.5 per cent compaed to 30.3 in quarter one last year.
