Empire Reports EPS of $0.94 in the Fourth Quarter and Fiscal 2026 Results
Increases dividend 10.2 per cent; 31st consecutive year delivering increase
- Quarterly earnings per share ("EPS") and adjusted EPS(1)(2) of $0.94, an increase of 27.0%
- Sales of $7,807 million, an increase of 2.2%
- Same-store sales(1) growth - food increased by 1.5%
- Operating income increase of 10.9%
- Adjusted EBITDA(1)(2) margin of 8.2%, an increase of 40 basis points
STELLARTON, NS, June 18, 2026 /CNW/ - Empire Company Limited ("Empire" or the "Company") (TSX: EMP.A) today announced its financial results for the fourth quarter and full year ended May 2, 2026. For the quarter, the Company recorded net earnings and adjusted net earnings of $212 million ($0.94 per share) compared to $173 million ($0.74 per share) last year, an increase of 22.5% (or 27.0% on a per share basis).
"We delivered a solid finish to fiscal 2026, with adjusted EPS growth of 27 per cent, reflecting disciplined execution and continued progress against our strategic priorities," said Pierre St-Laurent, President & CEO, Empire. "As we enter fiscal 2027, our focus remains on driving growth within our existing network, advancing key growth engines, and continuing to elevate our value proposition for customers in what remains a challenging economic environment."
(1) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
(2) | Adjusted Metrics include adjusted operating income, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted net earnings, and adjusted EPS. During the fourth quarters of fiscal 2026 and fiscal 2025, there were no adjusting items. |
Strategic Focus
The Company's ambition is to be the best retailer in Canada, providing quality and value with differentiated offerings and seamless experiences, with a strong focus on serving local cultures in every community. Empire recently launched its new three-year corporate strategy which is anchored to four core priority focus areas: Customers, Stores, Growth, and Cost Efficiency. Empire's belief is that long-term success is driven not solely by scale or market presence, but by the quality of the relationships the teammates in stores build with customers and the experiences they consistently deliver.
The Company prides itself on being a family nurturing families and its purpose is to serve the grocery shopping needs of millions of Canadians across the country.
Technology is a critical enabler of Empire's strategy. Advanced analytics, artificial intelligence, and modern digital platforms are being applied thoughtfully across the business to enhance the customer experience, support better decision making and improve how Empire's teams work every day.
Through these four core priority focus areas, which will be enabled by Empire's people, data and technology, the Company aims to grow total adjusted EPS over the long-term through sustained net earnings growth and share repurchases. Specifically, the Company intends to continue growing sales, expanding gross margin (excluding fuel), and generating operating leverage.
Customers: Strengthening the Value Proposition:
Empire's primary focus is to serve its customers by delivering greater value across all formats and channels. The Company is enhancing its customer value proposition through optimized assortments, differentiated and localized offerings, expanded fresh and prepared foods supported by central kitchen investments, and deeper customer engagement through Scene+. Empire continues to leverage the unique strengths of each banner particularly in local and multicultural offerings to differentiate at scale, supported by advanced analytics, tools, and capabilities.
Stores: Driving Retail Performance:
Empire is focused on improving retail performance by elevating the in-store experience, simplifying operations, and optimizing store economics so that stores can focus on what matters most - serving customers. The Company also prioritizes continuing to invest in the strategic expansion, renovation, and maintenance of its store network.
Growth: Accelerating Profitable Expansion:
With strong foundational capabilities in place, Empire's focus is now on accelerating growth. This includes enhancing performance across its existing platforms (such as Pharmacy, E-commerce, and Retail Media) and pursuing strategic acquisitions and partnerships that complement its core grocery and pharmacy retail operations and support long-term value creation. Driving growth is also a priority within the Company's existing network through the customer experience, offering, and executional standards within the four walls of its stores.
Cost Efficiency: Strengthening Operating Discipline:
As Empire realizes the full cost savings benefits from investments and initiatives that have been implemented over recent years, the Company will continue to maintain a strong focus on cost discipline to improve bottom-line performance. By simplifying processes, driving efficiencies, and reducing complexity, Empire is well positioned to invest in high-value opportunities that will deliver the greatest impact for customers and shareholders.
SUMMARY RESULTS - FOURTH QUARTER & FISCAL YEAR
Comparative amounts have been rounded to the nearest million to conform with current year presentation.
(in millions of Canadian dollars, except per share amounts) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||
13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change | |
Sales | $ 7,807 | $ 7,637 | $ 170 | $ 31,950 | $ 31,277 | $ 673 |
Gross profit(1) | 2,152 | 2,109 | 43 | 8,664 | 8,382 | 282 |
Operating income | 347 | 313 | 34 | 586 | 1,289 | (703) |
Adjusted operating income(1) | 347 | 313 | 34 | 1,332 | 1,303 | 29 |
EBITDA(2) | 644 | 599 | 45 | 1,754 | 2,409 | (655) |
Adjusted EBITDA(1) | 644 | 599 | 45 | 2,500 | 2,423 | 77 |
Net earnings(3) | 212 | 173 | 39 | 198 | 700 | (502) |
Adjusted net earnings(1)(2)(3)(4) | 212 | 173 | 39 | 747 | 711 | 36 |
Diluted earnings per share | ||||||
EPS(3) | $ 0.94 | $ 0.74 | $ 0.20 | $ 0.86 | $ 2.93 | $ (2.07) |
Adjusted EPS(1)(2)(3)(4) | $ 0.94 | $ 0.74 | $ 0.20 | $ 3.24 | $ 2.98 | $ 0.26 |
Diluted weighted average number of shares outstanding (in millions) | 226.5 | 234.8 | (8.3) | 230.4 | 238.6 | (8.2) |
Dividend per share | $ 0.22 | $ 0.20 | $ 0.02 | $ 0.88 | $ 0.80 | $ 0.08 |
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |
13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | |
Gross margin(1) | 27.6 % | 27.6 % | 27.1 % | 26.8 % |
EBITDA margin(1) | 8.2 % | 7.8 % | 5.5 % | 7.7 % |
Adjusted EBITDA margin(2) | 8.2 % | 7.8 % | 7.8 % | 7.7 % |
Same-store sales(1) growth | 1.7 % | 3.0 % | 1.4 % | 1.9 % |
Same-store sales(1) growth - food | 1.5 % | 3.8 % | 1.9 % | 2.3 % |
Same-store sales(1) growth (decline) - fuel | 5.0 % | (7.8) % | (6.6) % | (4.2) % |
Effective income tax rate | 19.3 % | 25.2 % | 20.1 % | 25.0 % |
(1) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
(2) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included. |
(3) | Attributable to owners of the Company. |
(4) | See "Adjusted Impacts on Net Earnings" section of this News Release. |
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 quarters and fiscal years ended May 2, 2026 and May 3, 2025.
The following financial information is Sobeys' contribution to Empire as the amounts are net of consolidated adjustments.
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |||
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change |
Sales | $ 7,807 | $ 7,637 | $ 170 | $ 31,950 | $ 31,277 | $ 673 |
Gross profit | 2,152 | 2,109 | 43 | 8,664 | 8,382 | 282 |
Operating income | 322 | 307 | 15 | 508 | 1,234 | (726) |
Adjusted operating income(1) | 322 | 307 | 15 | 1,254 | 1,248 | 6 |
EBITDA(1) | 619 | 593 | 26 | 1,676 | 2,354 | (678) |
Adjusted EBITDA(1) | 619 | 593 | 26 | 2,422 | 2,368 | 54 |
Net earnings(2) | 193 | 169 | 24 | 146 | 659 | (513) |
Adjusted net earnings(1)(2) | 193 | 169 | 24 | 695 | 670 | 25 |
(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:
May 2, 2026 | May 3, | May 2, | May 3, | |||||
(in millions of Canadian dollars) | 13 | 13 | $ Change | % | 52 Weeks | 52 | $ Change | % |
Food sales | $ 7,337 | $ 7,189 | $ 148 | 2.1 % | $ 30,145 | $ 29,338 | $ 807 | 2.8 % |
Fuel sales | 470 | 448 | 22 | 4.9 % | 1,805 | 1,939 | (134) | (6.9) % |
Investments and Other Operations
The following table provides a summary of operating income in the Investments and Other Operations segment:
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |||
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change |
Crombie REIT(1) | $ 13 | $ 11 | $ 2 | $ 51 | $ 65 | $ (14) |
Real estate partnerships | 15 | 1 | 14 | 37 | 16 | 21 |
Other operations, net of corporate expenses | (3) | (6) | 3 | (10) | (26) | 16 |
Operating income | $ 25 | $ 6 | $ 19 | $ 78 | $ 55 | $ 23 |
(1) | Crombie Real Estate Investment Trust ("Crombie REIT"). |
Empire Company Limited Operating Results
Sales
Food sales for the quarter ended May 2, 2026 increased by 2.1%, primarily driven by positive growth across the business, particularly in the Full-Service and Discount banners and the Company's national wholesale distribution network.
Fuel sales for the quarter ended May 2, 2026 increased by 4.9%, primarily driven by higher fuel prices.
Food sales for the fiscal year ended May 2, 2026 increased by 2.8% 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 fiscal year ended May 2, 2026 decreased by 6.9% driven by lower fuel prices due to the removal of the government carbon tax.
Gross Profit
Gross profit for the quarter ended May 2, 2026 increased by 2.0% primarily driven by higher food sales, strong performance and operational discipline in Full-Service and Discount banners.
Gross margin for the quarter ended May 2, 2026 remained consistent with the prior year at 27.6%. Excluding the mix impact of fuel sales, gross margin for the quarter ended May 2, 2026 increased by 1 basis point.
Gross profit for the fiscal year ended May 2, 2026 increased by 3.4% primarily driven by higher food sales and strong performance and operational discipline in Full-Service and Discount banners.
Gross margin for the fiscal year ended May 2, 2026 increased to 27.1% from 26.8% in the prior year, primarily driven by strong performance in Full-Service and Discount banners as a result of disciplined execution and several targeted efficiencies in our stores, including initiatives aimed at inventory control and reducing shrink, and better promotional mix control and the mix impact of lower fuel sales, partially offset by the mix impact of higher wholesale distribution sales.
Excluding the mix impact of fuel sales, gross margin was 14 basis points higher than in prior year which is consistent with the Company's medium term growth expectations of 10-20 basis points.
Operating Income
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |||
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change |
Food retailing | $ 322 | $ 307 | $ 15 | $ 508 | $ 1,234 | $ (726) |
Investments and other operations: | ||||||
Crombie REIT | 13 | 11 | 2 | 51 | 65 | (14) |
Real estate partnerships | 15 | 1 | 14 | 37 | 16 | 21 |
Other operations, net of corporate expenses | (3) | (6) | 3 | (10) | (26) | 16 |
25 | 6 | 19 | 78 | 55 | 23 | |
Operating income | $ 347 | $ 313 | $ 34 | $ 586 | $ 1,289 | $ (703) |
Adjustments: | ||||||
E-commerce Impairment(1) | - | - | - | 746 | - | 746 |
E-commerce Exclusivity(1) | - | - | - | - | 12 | (12) |
Restructuring(1) | - | - | - | - | 2 | (2) |
- | - | - | 746 | 14 | 732 | |
Adjusted operating income(2) | $ 347 | $ 313 | $ 34 | $ 1,332 | $ 1,303 | $ 29 |
(1) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included. |
(2) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
For the quarter ended May 2, 2026, operating income from the Food retailing segment increased mainly due to higher sales and gross profit, partially offset by higher selling and administrative expenses and an increase in depreciation and amortization.
For the fiscal year ended May 2, 2026, operating income from the Food retailing segment decreased mainly due to the E-Commerce Impairment during the third quarter of fiscal 2026, higher selling and administration expenses, an increase in depreciation and amortization in the current year, partially offset by higher sales and gross profit.
For the quarter ended May 2, 2026, operating income from the Investments and other operations segment increased primarily as a result of the realization of foreign exchange on the wind up of real estate partnerships.
For the fiscal year ended May 2, 2026, operating income from the Investments and other operations segment increased primarily as a result of the realization of foreign exchange on real estate partnerships.
EBITDA
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |||
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change |
EBITDA(1) | $ 644 | $ 599 | $ 45 | $ 1,754 | $ 2,409 | $ (655) |
Adjustments: | ||||||
E-commerce Impairment(2) | - | - | - | 746 | - | 746 |
E-commerce Exclusivity(2) | - | - | - | - | 12 | (12) |
Restructuring(2) | - | - | - | - | 2 | (2) |
- | - | - | 746 | 14 | 732 | |
Adjusted EBITDA(1)(2) | $ 644 | $ 599 | $ 45 | $ 2,500 | $ 2,423 | $ 77 |
(1) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
(2) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included. |
For the quarter ended May 2, 2026, EBITDA increased to $644 million from $599 million in the prior year mainly as a result of higher sales and gross profit, partially offset by higher selling and administrative expenses. Selling and administrative expenses increased mainly due to higher retail and supply chain labour costs, and continued investment in business expansion (FreshCo & Farm Boy). The increases were partially offset by lower incentive program expenses and accruals which were elevated in the prior year by an increase in the share price and a decrease in expenses related to Voilà driven by the closure of the Calgary CFC. EBITDA margin increased to 8.2% (May 3, 2025 - 7.8%).
For the fiscal year ended May 2, 2026, EBITDA decreased to $1,754 million from $2,409 million in the prior year mainly as a result of the E-commerce Impairment and an increase in selling and administrative expenses. Selling and administrative expenses increased mainly due to higher retail and supply chain labour costs, continued investment in business expansion (FreshCo and Farm Boy), and investment in stores, tools, technology, and projects, partially offset by lower incentive program expenses and accruals which were elevated in the prior year by an increase in the share price. Adjusted EBITDA margin increased to 7.8% from 7.7% in the prior year.
Depreciation and Amortization
For the quarter ended May 2, 2026, depreciation and amortization increased to $297 million from $286 million in the prior year mainly as a result of new lease agreements and higher ROU depreciation.
For the fiscal year ended May 2, 2026, depreciation and amortization increased to $1,168 million from $1,120 million in the prior year mainly as a result of new lease agreements and higher ROU depreciation.
Income Taxes
For the quarter ended May 2, 2026, the effective income tax rate was 19.3% compared to 25.2% in the same quarter in the prior year. The effective tax rate was lower than the statutory rate primarily due to non-taxable capital items, and the benefits of investment tax credits, partially offset by a change in deferred tax assets not recognized and the revaluation of tax estimates, not all of which are recurring. The effective tax rate in the same quarter last year was lower than the statutory rate due to the benefits of investment tax credits and the revaluation of tax estimates, not all of which are recurring.
The effective income tax rate for the fiscal year ended May 2, 2026 was 20.1% compared to 25.0% last year. The current year effective tax rate was lower than the statutory rate primarily due to non-taxable capital items, the benefits of investment tax credits, and consolidated structured entities that are taxed at lower rates, partially offset by a change in deferred tax assets not recognized and the revaluation of tax estimates, not all of which are recurring. The effective tax rate in the prior year was lower than the statutory rate primarily due to non-taxable capital items, consolidated structured entities that are taxed at lower rates, and the benefits of investment tax credits.
Net Earnings
(in millions of Canadian dollars, except per share amounts) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||
13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change | |
Net earnings(1) | $ 212 | $ 173 | $ 39 | $ 198 | $ 700 | $ (502) |
EPS(2) (fully diluted) | $ 0.94 | $ 0.74 | $ 0.20 | $ 0.86 | $ 2.93 | $ (2.07) |
Adjustments(3) (net of income taxes): | ||||||
E-commerce Impairment(4) | - | - | - | 549 | - | 549 |
E-commerce Exclusivity(4) | - | - | - | - | 9 | (9) |
Restructuring(4) | - | - | - | - | 2 | (2) |
- | - | - | 549 | 11 | 538 | |
Adjusted net earnings(1)(4)(5) | $ 212 | $ 173 | $ 39 | $ 747 | $ 711 | $ 36 |
Adjusted EPS(1)(2) (fully diluted) | $ 0.94 | $ 0.74 | $ 0.20 | $ 3.24 | $ 2.98 | $ 0.26 |
Diluted weighted average number of shares outstanding (in millions) | 226.5 | 234.8 | (8.3) | 230.4 | 238.6 | (8.3) |
(1) | Attributable to owners of the Company. |
(2) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
(3) | Total adjustments for the fiscal year ended are net of income taxes of $197 million (May 3, 2025 - $4 million). |
(4) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A for a description of the types of costs and recoveries included. |
(5) | See "Adjusted Impacts on Net Earnings" section of this news release. |
Adjusted Impacts on Net Earnings
In the third quarter of fiscal 2026, the Company recognized an E-commerce Impairment related to its e-commerce network following an assessment of its expected financial performance. Following this assessment, the Company made a decision to immediately wind-down and close the Calgary CFC and its support facility in Edmonton and continue to pause on development of the Vancouver CFC. These costs include impairment of right-of-use ("ROU") assets, property and equipment and intangibles, and direct costs associated with the closure of the CFC including severance costs, one-time cash contract termination payments, and decommissioning costs. As a result, the impact to net earnings during the fiscal year ended May 2, 2026 was $(549) million (May 3, 2025 - $ nil).
In the first quarter of fiscal 2025, the Company took actions in its e-commerce business to decrease costs and increase its flexibility to serve customers, including ending its mutual exclusivity agreement with Ocado. The Company incurred a non-cash charge related to ending the exclusivity. The impact to net earnings for the fiscal year ended May 2, 2026 was $ nil (May 3, 2025 - $(9) million).
Capital Expenditures
The Company invested $260 million and $842 million in capital expenditures(1) for the quarter and fiscal year ended May 2, 2026 (May 3, 2025 – $233 million and $721 million), respectively including renovations and construction of new stores, investments in advanced analytics technology and other technology systems.
In fiscal 2027, capital expenditures are expected to be approximately $850 million, with approximately 50% of this investment allocated to store renovations and new store expansion (including approximately 1.5% growth in store footprint expansion driven by new stores), approximately 25% on IT projects and business development projects and the remainder allocated largely to logistics and sustainability. The Company is planning to renovate approximately 20% to 25% of the network between fiscal 2027 and fiscal 2029.
(1) | Capital expenditures are calculated on an accrual basis and includes acquisitions of property, equipment and investment properties, and additions to intangibles. |
Free Cash Flow
May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | |||
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | $ Change | 52 Weeks | 52 Weeks | $ Change |
Cash flows from operating activities | $ 470 | $ 685 | $ (215) | $ 1,911 | $ 2,127 | $ (216) |
Add: | ||||||
Proceeds on disposal of assets(1) and lease modifications and terminations | 149 | 28 | 121 | 206 | 149 | 57 |
Less: | ||||||
Interest paid | (19) | (19) | - | (58) | (59) | 1 |
Payments of lease liabilities, net of payments received for finance subleases | (256) | (176) | (80) | (751) | (712) | (39) |
Acquisitions of property, equipment, investment property and intangibles | (223) | (200) | (23) | (831) | (777) | (54) |
Free cash flow(2) | $ 121 | $ 318 | $ (197) | $ 477 | $ 728 | $ (251) |
(1) | Proceeds on disposal of assets include property, equipment and investment property. |
(2) | See "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A. |
For the quarter ended May 2, 2026, free cash flow decreased versus prior year primarily as a result of a decrease in cash flows from operating activities, higher payments of lease liabilities, net of payments received from finance subleases and an increase in capital investments and intangibles, partially offset by an increase in proceeds on disposal of assets and lease modifications and terminations. The decrease in cash flows from operating activities is driven by working capital changes, the settlement of provisions for the direct costs associated with the closure of the Calgary CFC and an increase in income taxes paid.
For the fiscal year ended May 2, 2026, free cash flow decreased versus prior year primarily as a result of a decrease in cash flows from operating activities, an increase in capital investments and intangibles and higher payments of lease liabilities net of payments received for finance subleases, partially offset by an increase in proceeds on disposal of assets and lease modifications and terminations. The decrease in cash flows from operating activities is driven by working capital changes and an increase in income taxes paid.
Dividend Declaration
The Company declared a quarterly dividend of $0.2425 per share on both Non-Voting Class A shares ("Class A shares") and Class B common shares, that will be payable on July 31, 2026 to shareholders of record on July 15, 2026. This reflects an increase in the annualized dividend rate of 10.2%. These dividends are eligible dividends as defined for the purposes of the Income Tax Act (Canada) and applicable provincial legislation.
Normal Course Issuer Bid ("NCIB")
Under the Company's current NCIB, that commenced on July 2, 2025 and expires on July 1, 2026, the Company received approval from the TSX to repurchase up to 11,500,000 Non-Voting Class A shares representing approximately 9.6% of the public float of Non-Voting Class A shares outstanding as of June 17, 2025.
The Company intends to renew its NCIB on or before June 25, 2026, consistent with timing requirements of the Toronto Stock Exchange ("TSX"), by filing a notice of intention with the TSX to repurchase for cancellation up to 10,750,000 Non-Voting Class A shares representing approximately 9.6% of the public float, subject to regulatory approval.
The repurchases shall be made through the facilities of the TSX and/or any alternative Canadian trading systems to the extent they are eligible. The price that Empire will pay for any shares shall be the market price at the time of acquisition. The Company believes that repurchasing shares at the prevailing market prices from time to time is a worthwhile use of funds and in the best interests of Empire and its shareholders.
The following table summarizes share repurchase activity in the quarter and fiscal year:
(in millions of Canadian dollars, except per share amounts) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 |
13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | |
Number of shares | 2,026,709 | 2,196,668 | 7,977,828 | 9,888,014 |
Weighted average price per share | $ 49.35 | $ 45.53 | $ 50.15 | $ 40.46 |
Cash consideration paid | $ 100 | $ 100 | $ 400 | $ 400 |
For the quarter and fiscal year ended May 2, 2026, the Company has recognized tax on the repurchase of equity of $2 million and $8 million (May 3, 2025 - $2 million and $11 million) respectively, as a charge to retained earnings on the Consolidated Balance Sheets.
BUSINESS UPDATES
E-commerce
During the third quarter of fiscal 2026, the Company performed an assessment of expected financial performance across its e-commerce network. Following its review, the Company provided an e-commerce update on January 28, 2026 focused on delivering immediate e-commerce earnings improvement while expanding its third-party delivery partnerships. Key elements of this update included the immediate wind-down and closure of the Calgary CFC and its support facility in Edmonton which had not achieved expected financial or operational expectations, and the continued pause on development of the Vancouver CFC, as well as the expansion of its third-party delivery partnerships through a new collaboration with DoorDash.
During the third quarter of fiscal 2026 the Company recognized impairment losses and related pre-tax costs ("E-commerce Impairment") of $746 million, which was recognized in the food retailing segment and has been recorded in impairment losses of long-lived assets and related charges on the Interim Condensed Consolidated Statements of Earnings. These costs include impairment of ROU, property and equipment and intangibles, and direct costs associated with the closure of the CFC including severance costs, one-time cash contract termination payments, and decommissioning costs. The total carrying amount of the cash generating units prior to impairment was $724 million, while the estimated recoverable amount was $126 million. This resulted in an impairment loss of $409 million to ROU assets, including $55 million in decommissioning costs, $214 million to property and equipment and $31 million to intangibles.
The Company will continue to leverage its Toronto and Montreal CFCs to support the e-commerce strategy in these areas with high density demand, with an emphasis on driving sales growth, and improving productivity and profitability. The Company's announcement of a new partnership with DoorDash expands the use of third-party delivery services to provide additional ways for customers to shop its stores online, and enhances its overall e-commerce offerings. This new partnership, along with the existing partnerships with Instacart and Uber Eats announced in fiscal 2025, complement Voilà by providing a full suite of delivery options for our customers across the marketplace platforms at many of the Company's banners such as Sobeys, Farm Boy, Longo's, FreshCo, Safeway, IGA, Foodland and Lawtons Drugs nationwide. The rollout of DoorDash was completed in the fourth quarter of fiscal 2026.
The Company has taken actions to decrease costs and increase its flexibility to serve customers, including ending its mutual exclusivity agreement with Ocado before it was originally estimated to end. This resulted in a non-cash pre-tax charge related to ending the exclusivity of $12 million during the first quarter of fiscal 2025. The Company continues to work closely with Ocado, and continues to evaluate the e-commerce financial performance, remaining focused on pursuing strategic options to reduce costs and improve overall profitability. The Company expects an overall improvement in its e-commerce financial performance with annualized benefits of approximately $95 million, largely driven by a reduction of operational losses from its Calgary CFC and reduction in future depreciation. Of this $95 million, approximately one-third was identified to be reinvested in accelerating growth engines including technology investments. Voilà's future earnings will primarily be impacted by sales volume, with strong margins, operational efficiencies and cost discipline also serving as important drivers to manage financial performance.
In the quarter ended May 2, 2026, the Company's e-commerce platforms Voilà (including curbside pickup), IGA.net, ThriftyFoods.com and partnerships with Instacart, Uber Eats, and DoorDash generated a combined sales increase of 6.0% compared to the same quarter in the prior year. The increase is primarily driven by growth in third-party partnership sales and continued sales growth for Voilà.
Scene+
Along with Scotiabank and Cineplex, Empire is a co-owner of Scene+, one of Canada's leading loyalty programs. Scene+ has been rewarding customers in almost all of the Company's banners since launching in fiscal 2023. In that time, Scene+ has grown from 10 million to over 15 million members, while offering a breadth of rewards categories to its members, providing a strategic marketing and promotional tool for the Company.
The Scene+ program continues to expand their reward partners, broadening customer reach and strengthening the program's overall offering through increased earning and redemption opportunities. In the third quarter of fiscal 2026, Shell Canada Limited announced that it is joining the Scene+ loyalty rewards program which launched in Alberta on March 3, 2026, and was rolled out nationwide on May 26, 2026. Members are now able to earn and redeem Scene+ points at more than 1,400 Shell locations across Canada, including over 300 locations owned or supported by the Company in Québec and the Atlantic regions.
In the quarter ended May 2, 2026, Tangerine Bank announced the launch of its first rewards based credit card, powered by Scene+. Launched on April 22, 2026, the credit card will give Tangerine clients the ability to earn and redeem points at the Company's retail banners, including Sobeys, IGA, Safeway, Foodland, FreshCo and Voilà.
The Company's key priority with Scene+ is to accelerate program engagement by focusing on personalization. By using machine learning and artificial intelligence algorithms, personalization recommendations will be improved, delivering the right message to the right customer at the right time, through the right channels.
Technology Platform
The Company is currently implementing a significant transformation of its core business systems by migrating the legacy ERP system to a modern national SAP S/4HANA platform. This implementation is a strategic investment aimed at centralizing the Company's ERP system to streamline financial reporting, procurement, and supply chain operations. The upgraded system will provide improved real-time data visibility, improved automation, and enhanced analytics capabilities, supporting more agile decision-making across the organization. The project is progressing according to plan, with full deployment expected to be substantially completed by the end of fiscal 2027.
FreshCo
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 across Ontario and Western Canada. In fiscal 2027, the Company will open its first FreshCo stores in Atlantic Canada.
As at June 17, 2026, FreshCo has a total of 161 FreshCo stores, 53 stores operating in Western Canada and 108 stores operating in Ontario. The Company expects to have opened 65 FreshCo stores in Western Canada over the next couple of years. In fiscal 2027, the Company expects to open approximately 15 new FreshCo stores across Western Canada, Ontario and Atlantic Canada.
Mayrand Food Group Inc. Acquisition
In the quarter ended May 2, 2026, the Company, and its wholly-owned subsidiary Sobeys, announced it has entered into an agreement to acquire Mayrand Food Group Inc., a long-established Québec food retailer operating four large-format locations across the Greater Montréal Area. Subsequent to the year ended May 2, 2026, the Company received the required court approval and regulatory approval for the transaction. The transaction is expected to close during the first quarter of fiscal 2027.
Pension Group Annuity Buy-Out
In the quarter ended May 2, 2026, the Company initiated a group annuity buy-out for its inactive defined benefit pension members of certain pension plans, for a total premium of $335 million. On May 5, 2026, the pension assets and related pension liabilities of $357 million were derecognized, resulting in a pre-tax settlement gain of $22 million, to be recognized in the first quarter of fiscal 2027.
OUTLOOK
The objective of the Company is to be the best retailer in Canada, through its four priority focus areas: Customers, Stores, Growth, and Cost Efficiency. Through these focus areas, which will be enabled by Empire's people, data and technology, the Company aims to grow total adjusted EPS over the long-term through net earnings and share repurchases. The Company intends to continue growing sales, gross margin (excluding fuel) and generating operating leverage. Empire will focus on strengthening the value proposition for its customers, driving retail performance within its stores, accelerating profitable expansion growth, and continue to execute strong cost control.
The outcome of the Company's e-commerce review is expected to improve overall e-commerce financial performance with improvements in annualized operating income of approximately $95 million, which began in the fourth quarter of fiscal 2026 and will continue into fiscal 2027 and beyond. The Company is intensifying its focus on increasing customer engagement, cost discipline, operational efficiencies and accelerating execution.
For fiscal 2027, capital spend is expected to be approximately $850 million, with approximately half of this investment allocated to renovations and new store expansion (including approximately 1.5% growth in store footprint expansion driven by new stores), approximately 25% allocated to IT and business development projects and the remainder allocated largely to logistics and sustainability. The Company expects to renovate approximately 20% to 25% of its store network between fiscal 2027 and fiscal 2029.
During fiscal 2027, the Company expects aggregate pre-tax earnings from Other income plus Share of earnings from investments, at equity (both found in the Company's Consolidated Statements of Earnings), to be in the range of $90 million to $110 million (fiscal 2026 - $129 million).
In the quarter ended May 2, 2026, the Company's internal food inflation continued to be below the Consumer Price Index for food purchased from stores and was largely in line with internal food inflation from the quarter ended January 31, 2026. The Company is focused on supplier relationships and negotiations to ensure competitive pricing for customers. The Company continues to be well positioned to pursue long-term growth despite the impacts of global economic uncertainties.
Contingencies
On June 21, 2005, Sobeys received a notice of reassessment from Canada Revenue Agency ("CRA") for fiscal years 1999 and 2000 related to Lumsden Brothers Limited, a wholesale subsidiary of Sobeys, and the Goods and Service Tax ("GST"). The reassessment related to GST on sales of tobacco products to eligible Indigenous peoples. CRA asserts that Sobeys was obliged to collect GST on sales of tobacco products to eligible Indigenous peoples. The total tax, interest and penalties in the reassessment was $14 million. Sobeys reviewed this matter, received legal advice, and believed it was not required to collect GST. During fiscal 2006, Sobeys filed a Notice of Objection with CRA. Sobeys had deposited with CRA funds equal to the total tax, interest and penalties in the reassessment and had recorded this amount as an other long-term receivable from CRA pending resolution of the matter. During the year ended May 4, 2024, the court ruled in favour of Sobeys, however, the Crown filed Notice of Appeal and the hearing was held in May 2024. In October 2025, the Federal Court of Appeal ruled in favour of Sobeys and dismissed the Crown's appeal. For the fiscal year ended May 2, 2026, Sobeys recorded a recovery of $9 million, related to the interest earned on the amounts deposited with CRA, net of costs associated with settling the matter, which has been recognized in finance costs, net on the Consolidated Statement of Earnings.
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company's financial position and understand management's expectations regarding the Company's strategic priorities, objectives and plans. These forward-looking statements may not be appropriate for other purposes. Forward-looking statements are identified by words or phrases such as "anticipates", "expects", "believes", "estimates", "intends", "could", "may", "plans", "predicts", "projects", "will", "would", "foresees" and other similar expressions or the negative of these terms.
Specific forward-looking statements in this document include, but are not limited to, the Company's expectation that Other income plus Share of earnings from investments, at equity will in aggregate, be in a range of $90 million to $110 million in fiscal 2027, which assumes completion of pending real estate transactions by the Company and Share of earnings from investments, at equity being consistent with historical values adjusted for significant transactions and may be impacted by the timing and terms of completion of real estate-related transactions and actual results from Crombie REIT and Real estate partners. Other forward-looking statements relate to (i) the Company's aim to increase total EPS through net earnings growth and share repurchases, as well as its intention to continue growing sales, gross margin (excluding fuel) and generating operating leverage, (ii) capital expenditures, (iii) implementation of the ERP platform, (iv) the company's expectation that it will meet targeted store growth of FreshCo, (v) the Company's expectation that it will improve overall e-commerce financial performance including the amount and timing of improvements in annualized operating income of approximately $95 million, (vi) the Company's expectation to reinvest approximately one-third of the $95 million annualized e-commerce benefits into accelerating growth engines, (vii) the Company's expectation that the Scene+ program will accelerate engagement, (viii) the Company's expectation that it will continue to focus on driving efficiency and cost effectiveness initiatives, (ix) the Company's expectation regarding its ability to ensure competitive pricing for customers and pursue long-term growth, (x) the company's expectation regarding medium term growth expectations of 10-20 basis points for gross margin excluding fuel, (xi) the Company's plans to repurchase for cancellation Class A shares under the NCIB, and (xii) the Company's expectation of the timing and completion of the Mayrand Food Group Inc. acquisition, which may be impacted by final closing conditions.
For more information on the forward-looking statements, see the "Forward-Looking Information" section of the fourth quarter fiscal 2026 MD&A.
By its nature, forward-looking information requires the Company to make assumptions and is subject to inherent risks, uncertainties and other factors which may cause actual results to differ materially from forward-looking statements made. For more information on risks, uncertainties and assumptions that may impact the Company's forward-looking statements, please refer to the Company's materials filed with the Canadian securities regulatory authorities, including the "Risk Management" section of the fiscal 2026 annual MD&A.
Although the Company believes the predictions, forecasts, expectations or conclusions reflected in the forward-looking information are reasonable, it can provide no assurance that such matters will prove correct. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The forward-looking information in this document reflects the Company's current expectations and is subject to change. The Company does not undertake to update any forward-looking statements that may be made by or on behalf of the Company other than as required by applicable securities laws.
NON-GAAP FINANCIAL MEASURES & FINANCIAL METRICS
There are measures and metrics included in this News Release that do not have a standardized meaning under generally accepted accounting principles ("GAAP") and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. For Empire's definition of the non-GAAP terms included in this News Release, as well as an explanation of how the non-GAAP financial measures provide useful information to investors and additional purposes for which management uses the non-GAAP financial measures, please refer to the Company's materials filed with the Canadian securities regulatory authorities, including the "Non-GAAP Financial Measures & Financial Metrics" section of the fourth quarter fiscal 2026 MD&A.
The following table reconciles gross profit on a consolidated basis:
(in millions of Canadian dollars) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 |
13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | |
Sales | $ 7,807 | $ 7,637 | $ 31,950 | $ 31,277 |
Cost of sales | 5,655 | 5,528 | 23,286 | 22,895 |
Gross profit | $ 2,152 | $ 2,109 | $ 8,664 | $ 8,382 |
The following table reconciles net earnings to EBITDA on a consolidated basis and for the Food retailing segment:
May 2, 2026 | May 3, 2025 | |||||
13 Weeks | 13 Weeks | |||||
(in millions of Canadian dollars) | Food | Investment | Total | Food | Investment | Total |
Net earnings | $ 203 | $ 18 | $ 221 | $ 175 | $ 3 | $ 178 |
Income tax expense | 47 | 6 | 53 | 58 | 2 | 60 |
Finance costs, net | 72 | 1 | 73 | 74 | 1 | 75 |
Operating income | 322 | 25 | 347 | 307 | 6 | 313 |
Depreciation | 266 | - | 266 | 255 | - | 255 |
Amortization of intangibles | 31 | - | 31 | 31 | - | 31 |
EBITDA | $ 619 | $ 25 | $ 644 | $ 593 | $ 6 | $ 599 |
May 2, 2026 | May 3, 2025 | |||||
52 Weeks | 52 Weeks | |||||
(in millions of Canadian dollars) | Food | Investment and other | Total | Food retailing | Investment | Total |
Net earnings | $ 195 | $ 51 | $ 246 | $ 705 | $ 41 | $ 746 |
Income tax expense | 39 | 23 | 62 | 239 | 10 | 249 |
Finance costs, net | 274 | 4 | 278 | 290 | 4 | 294 |
Operating income | 508 | 78 | 586 | 1,234 | 55 | 1,289 |
Depreciation | 1,047 | - | 1,047 | 1,002 | - | 1,002 |
Amortization of intangibles | 121 | - | 121 | 118 | - | 118 |
EBITDA | $ 1,676 | $ 78 | $ 1,754 | $ 2,354 | $ 55 | $ 2,409 |
The following table reconciles finance costs, net to interest expense:
May 2, 2026 | May 3, 2025 | May 3, 2025 | May 3, 2025 | |
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks |
Finance costs, net | $ 73 | $ 75 | $ 278 | $ 294 |
Plus: finance income, excluding interest income on lease receivables | 3 | 2 | 24 | 10 |
Less: pension finance costs, net | (1) | (1) | (7) | (7) |
Less: accretion expense on provisions | (1) | - | (2) | (2) |
Interest expense | $ 74 | $ 76 | $ 293 | $ 295 |
Food Retailing Segment Adjustments Reconciliation
The following tables adjust Empire's Food retailing segment operating income, EBITDA and net earnings, net of non-controlling interest, for certain items to better analyze trends in performance. These items are excluded to allow for better period over period comparison of ongoing operating results.
May 2, 2026 | May 3, 2025 | 2026 Compared to 2025 | |
(in millions of Canadian dollars) | 52 Weeks | 52 Weeks | $ Change |
Operating income | $ 508 | $ 1,234 | $ (726) |
Adjustments: | |||
E-commerce Impairment | 746 | - | 746 |
E-commerce Exclusivity | - | 12 | (12) |
Restructuring | - | 2 | (2) |
746 | 14 | 732 | |
Adjusted operating income | $ 1,254 | $ 1,248 | $ 6 |
May 2, 2026 | May 3, 2025 | 2026 Compared to 2025 | |
(in millions of Canadian dollars) | 52 Weeks | 52 Weeks | $ Change |
EBITDA | $ 1,676 | $ 2,354 | $ (678) |
Adjustments: | |||
E-commerce Impairment | 746 | - | 746 |
E-commerce Exclusivity | - | 12 | (12) |
Restructuring | - | 2 | (2) |
746 | 14 | 732 | |
Adjusted EBITDA | $ 2,422 | $ 2,368 | $ 54 |
May 2, 2026 | May 3, 2025 | 2026 Compared to 2025 | |
(in millions of Canadian dollars) | 52 Weeks | 52 Weeks | $ Change |
Net earnings | $ 146 | $ 659 | $ (513) |
Adjustments: | |||
E-commerce Impairment | 549 | - | 549 |
E-commerce Exclusivity | - | 9 | (9) |
Restructuring | - | 2 | (2) |
549 | 11 | 538 | |
Adjusted net earnings | $ 695 | $ 670 | $ 25 |
CONFERENCE CALL INFORMATION
The Company will hold an analyst call on Thursday, June 18, 2026 beginning at 8:00 a.m. (Eastern Daylight Time) during which senior management will discuss the Company's financial results for the fourth quarter of fiscal 2026. To instantly join the conference call by phone, please use the following URL to easily register yourself and be connected into the conference call automatically: https://emportal.ink/4tlVw7C. You can also be entered to the call by an Operator by dialing (888) 699-1199 outside the Toronto area or (416) 945-7677 from within the Toronto area.
To secure a line, please call 10 minutes prior to the conference call; you will be placed on hold until the conference call begins. The media and investing public may access this conference call via a listen mode only. You may also listen to a live audiocast of the conference call by visiting the "Quick Links" section of the Company's website located at www.empireco.ca, and then navigating to the "Empire Company Limited Quarterly Results Call" link.
The replay will be available by dialing (888) 660-6345 and entering access code 22508 until midnight July 2, 2026, or on the Company's website for 90 days following the conference call.
SELECTED FINANCIAL INFORMATION
The following unaudited quarterly and audited annual financial information has been prepared on a basis consistent with the audited Consolidated Financial Statements for the year ended May 2, 2026. The information does not include all disclosures required by International Financial Reporting Standards ("IFRS") and should be read in conjunction with the Company's 2026 audited Consolidated Financial Statements available on SEDAR+ at www.sedarplus.ca or by accessing the Investor Centre section of the Company's website at www.empireco.ca.
Consolidated Balance Sheets | May 2 | May 3 |
(in millions of Canadian dollars) | 2026 | 2025 |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | $ 291 | $ 285 |
Receivables | 717 | 668 |
Inventories | 1,919 | 1,833 |
Prepaid expenses | 204 | 173 |
Lease and other receivables | 121 | 121 |
Income taxes receivable | 138 | 54 |
Total current assets | 3,390 | 3,134 |
Non-current assets | ||
Lease and other receivables | 582 | 636 |
Investments, at equity | 721 | 720 |
Other assets | 22 | 44 |
Property and equipment | 3,638 | 3,675 |
Right-of-use assets | 4,783 | 4,964 |
Investment property | 138 | 162 |
Intangibles | 1,327 | 1,359 |
Goodwill | 2,056 | 2,055 |
Deferred tax assets | 423 | 270 |
Total assets | $ 17,080 | $ 17,019 |
LIABILITIES | ||
Current liabilities | ||
Accounts payable and accrued liabilities | $ 3,024 | $ 3,122 |
Income taxes payable | 66 | 73 |
Provisions | 148 | 46 |
Long-term debt due within one year | 195 | 225 |
Lease liabilities due within one year | 636 | 597 |
Other liabilities due within one year | 59 | 33 |
Total current liabilities | 4,128 | 4,096 |
Non-current liabilities | ||
Provisions | 29 | 34 |
Long-term debt | 1,053 | 857 |
Long-term lease liabilities | 5,973 | 5,785 |
Other long-term liabilities | 295 | 279 |
Employee future benefits | 188 | 162 |
Deferred tax liabilities | 262 | 262 |
Total liabilities | 11,928 | 11,475 |
EQUITY | ||
Equity attributable to Owners of the Company | ||
Capital stock | 1,572 | 1,660 |
Contributed surplus | 94 | 30 |
Retained earnings | 3,334 | 3,697 |
Accumulated other comprehensive income | 3 | 23 |
Total equity attributable to Owners of the Company | 5,003 | 5,410 |
Non-controlling interest | 149 | 134 |
Total equity | 5,152 | 5,544 |
Total liabilities and equity | $ 17,080 | $ 17,019 |
Consolidated Statements of Earnings | May 2 | May 3 | May 2 | May 3 |
(in millions of Canadian dollars, except per share amounts) | 2026 | 2025 | 2026 | 2025 |
13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks | |
Sales | $ 7,807 | $ 7,637 | $ 31,950 | $ 31,277 |
Other income | 36 | 26 | 64 | 90 |
Share of earnings from investments, at equity | 13 | 11 | 65 | 68 |
Operating expenses | ||||
Cost of sales | 5,655 | 5,528 | 23,286 | 22,895 |
Selling and administrative expenses | 1,854 | 1,833 | 7,461 | 7,251 |
Impairment losses of long-lived assets and related charges | - | - | 746 | - |
Operating income | 347 | 313 | 586 | 1,289 |
Finance costs, net | 73 | 75 | 278 | 294 |
Earnings before income taxes | 274 | 238 | 308 | 995 |
Income tax expense | 53 | 60 | 62 | 249 |
Net earnings | $ 221 | $ 178 | $ 246 | $ 746 |
Earnings for the year attributable to: | ||||
Owners of the Company | $ 212 | $ 173 | $ 198 | $ 700 |
Non-controlling interest | 9 | 5 | 48 | 46 |
$ 221 | $ 178 | $ 246 | $ 746 | |
Earnings per share | ||||
Basic | $ 0.94 | $ 0.74 | $ 0.86 | $ 2.94 |
Diluted | $ 0.94 | $ 0.74 | $ 0.86 | $ 2.93 |
Weighted average number of common shares outstanding, in millions | ||||
Basic | 226.1 | 233.9 | 229.7 | 237.9 |
Diluted | 226.5 | 234.8 | 230.4 | 238.6 |
Consolidated Statements of Cash Flows | May 2 | May 3 | May 2 | May 3 |
2026 | 2025 | 2026 | 2025 | |
(in millions of Canadian dollars) | 13 Weeks | 13 Weeks | 52 Weeks | 52 Weeks |
Operations | ||||
Net earnings | $ 221 | $ 178 | $ 246 | $ 746 |
Adjustments for: | ||||
Depreciation | 266 | 255 | 1,047 | 1,002 |
Income tax expense | 53 | 60 | 62 | 249 |
Finance costs, net | 73 | 75 | 278 | 294 |
Amortization of intangibles | 31 | 31 | 121 | 118 |
Net gains on disposal of net assets | (33) | (4) | (38) | (57) |
Net gains on lease modifications and terminations | - | (18) | (12) | (18) |
Impairment losses of non-financial assets, net | 3 | 2 | 3 | 14 |
Impairment losses of long-lived assets | - | - | 599 | 3 |
Amortization of deferred items | - | (1) | - | 1 |
Equity earnings (losses) of other entities, net of distributions received | 1 | 3 | 6 | (3) |
Employee future benefits | - | 2 | (1) | (9) |
Equity based compensation | 1 | - | 10 | 16 |
Reclassification adjustment for gains on derivatives on cash flow hedges | (3) | - | (3) | - |
Reclassification adjustment for foreign exchange translation on foreign associates | (14) | - | (14) | - |
Decrease (increase) in provisions | (49) | (7) | 95 | (16) |
Net change in non-cash working capital | 16 | 165 | (182) | 27 |
Income taxes paid, net | (96) | (56) | (306) | (240) |
Cash flows from operating activities | 470 | 685 | 1,911 | 2,127 |
Investment | ||||
Increase in equity investments | (7) | (11) | (25) | (26) |
Property, equipment and investment property purchases | (187) | (158) | (696) | (640) |
Intangible purchases | (36) | (42) | (135) | (137) |
Proceeds on disposal of assets | 149 | 6 | 190 | 127 |
Proceeds on lease modifications and terminations | - | 22 | 16 | 22 |
Leases and other receivables, net | (4) | (21) | 16 | (22) |
Other assets | 1 | 1 | (6) | (8) |
Other liabilities | 15 | 10 | 8 | 4 |
Business acquisitions | - | - | (6) | (15) |
Payments received for finance subleases | 27 | 27 | 86 | 96 |
Interest received | - | - | 2 | 2 |
Cash flows used in investing activities | (42) | (166) | (550) | (597) |
Financing | ||||
Issuance of long-term debt | 28 | 19 | 409 | 98 |
Advance on non-revolving credit facility | - | - | - | 120 |
Repayments of long-term debt | (19) | (12) | (97) | (94) |
Repayments on revolving credit facilities, net | (21) | (55) | (146) | (138) |
Interest paid | (19) | (19) | (58) | (59) |
Payments of lease liabilities (principal portion) | (216) | (136) | (578) | (548) |
Payments of lease liabilities (interest portion) | (67) | (67) | (259) | (260) |
Repurchase of common shares | (100) | (100) | (400) | (400) |
Dividends paid | (50) | (48) | (203) | (192) |
Non-controlling interest | (2) | (7) | (23) | (32) |
Cash flows used in financing activities | (466) | (425) | (1,355) | (1,505) |
(Decrease) increase in cash and cash equivalents | (38) | 94 | 6 | 25 |
Cash and cash equivalents, beginning of period | 329 | 191 | 285 | 260 |
Cash and cash equivalents, end of period | $ 291 | $ 285 | $ 291 | $ 285 |
2026 ANNUAL REPORT
The Company's audited Consolidated Financial Statements and the notes thereto for the fiscal year ended May 2, 2026 and MD&A for the fiscal year ended May 2, 2026, which includes discussion and analysis of results of operations, financial position and cash flows will be available today, June 18, 2026. These documents can be accessed through the Investor Centre section of the Company's website at www.empireco.ca and also at www.sedarplus.ca.
The Company's 2026 Annual Report will be available on or about July 31, 2026 and can be accessed through the Investor Centre section of the Company's website at www.empireco.ca and also at www.sedarplus.ca.
ABOUT EMPIRE
Empire Company Limited (TSX: EMP.A) 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 $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 130,000 people.
Additional financial information relating to Empire, including the Company's Annual Information Form, can be found on the Company's website at www.empireco.ca or on SEDAR+ at www.sedarplus.ca.
SOURCE Empire Company Limited
For further information, please contact: Media Contact: Karen White-Boswell, Director, External Communications, Sobeys Inc., [email protected]; Investor Contact: Katie Brine, Vice President, Investor Relations, Treasury & Pensions, Sobeys Inc., [email protected]
Partager cet article