Empire Company (TSE:EMP.A), the parent company of supermarket chains Sobeys and Safeway, posted an improved profit for the fourth quarter of $173 million, up from $149 million a year ago.
For the quarter ended May 3, earnings per share of $0.74 were up from C$0.63, beating estimates of $0.71.
Revenue was C$7.64 billion, up 3% from C$7.41 billion in the year-ago quarter but slightly below analyst estimates of C$7.66 billion.
Same-store sales increased by 3% during the quarter, with food same-store sales rising 3.8%, while fuel same-store sales fell 7.8%, primarily due to lower prices following the removal of the government carbon tax.
“This was a very strong quarter for Empire and I am pleased with the way our team finished the year, delivering positive results across all major financial measures,” Empire CEO Michael Medline said in a statement.
“Our momentum continued to build throughout fiscal 2025 resulting in fourth quarter market share gains and our adjusted EPS growth of 8.8% was within our financial framework.”
In response to the strong financial performance, Empire raised its quarterly dividend by 10%, to C$0.22 from C$0.20 per share, marking the 30th consecutive year of dividend increases.
The company also repurchased $400 million of shares in fiscal 2025 and plans to continue share repurchases with a renewed normal course issuer bid for up to $400 million in fiscal 2026.
The company noted that in response to tariffs, it continues to seek alternative suppliers outside the United States, with about 12% of its annual sales related to goods sourced from the US during fiscal Q3.