CANADA: Sobeys "key driver" of Empire Co. growth

By: just-food.com | 11 December 2009

The owner of Canadian retailer Sobeys has posted a rise in quarterly sales and earnings thanks to an improved performance from the grocery chain.

Empire Co. booked second-quarter net income of C$70.4m (US$67m) for the three months to the end of October, against C$65.6m a year earlier.

Revenue was up 3.9% to C$3.97bn, including Empire Co.'s real estate interests.

Sobeys makes up the bulk of Empire Co.'s turnover and the retailer saw its turnover climb to C$3.81bn, compared to C$3.66bn a year ago.

Sobeys' operating income contribution to Empire was up 12.4% to C$106.3m, the company said.

Empire president and CEO Paul Sobey said: "The positive trend in earnings reflects ongoing growth in Sobeys' same-store sales, the impact of merchandising innovations and the disciplined implementation of supply chain and other productivity initiatives."

Sobeys' second quarter same-store sales increased 2.7%.

Sectors: Retail

Companies: Empire Co.