Boosted by the performance of its Sobeys division, Empire Company has reported record earnings for its fourth quarter and strong full year growth.
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The Canadian retail group said that for the fourth quarter, the company recorded earnings before capital gains and other items, net of tax, of C$73.6m as compared to $64.1m last year, a 14.8% increase. Fiscal 2008 earnings before capital gains and other items, net of tax, equalled C$242.8m a 21.3%.
Fourth quarter revenues reached C$3.56 billion, up 6.2%, with Sobeys’ same-store sales increasing 2.6%.
Full year revenues reached C$14.06 billion, up 5.2%, with Sobeys’ same-store sales increasing 2.8%.
Net earnings of C$315.8m compared to C$205.8m last year.
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By GlobalDataDuring the year the company saw the privatisation of Sobeys and the acquisition of Thrifty Foods.
Paul Sobey, president and CEO, said: “Our fourth quarter earnings before capital gains and other items was a record level for the company. Our consolidated earnings benefited from having 100% ownership of Sobeys versus 72% a year ago, amplified by Sobeys’ continued growth in total and same-store sales, selling margins and ongoing cost reduction initiatives. The higher earnings contribution from Sobeys more than offset the expected lower earnings from our residential real estate operation.
“We are pleased with what we accomplished in fiscal 2008, including the privatization of Sobeys, the acquisition of Thrifty Foods, and the sale of 61 properties to Crombie REIT.”
He continued: “Consistent with our growth and our confidence in the strength of our businesses, we are pleased to announce an increase in Empire’s dividend per share, from 66 cents annually to 70 cents annually. This marks the thirteenth consecutive year of dividend increases.”
