An extra selling week and a lower tax rate were factors in the higher annual profits at Sobeys, the holding company for the Canadian retailer has announced.
Empire Co. said yesterday (30 June) that Sobeys recorded a 2.7% increase in net earnings to C$269.9m (US$280.4m) for the year to 7 May.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The improved net earnings came from an increase in Sobeys’ earnings before capital gains and “other items”, which included costs linked to the closure of stores and a distribution centre in Ontario.
Earnings before capital gains and other items were up 8.8% at C$278.7m thanks to a rise in operating income – which climbed 4.8% to C$445.8m – and from the extra selling week and the lower tax rate.
However, including the costs linked to the Ontario closures, Sobeys reported operating income of C$430.7m, down from C$430.8m last year.
Nevertheless, the retailer’s sales climbed 3.4% to C$15.76bn. Empire said 2.1 percentage points of the increase was due to the financial year including an extra week.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSobeys’ same-store sales increased 0.2% during the year. Empire said the retailer had seen food prices fall during parts of the year. “No inflation was experienced in the fourth quarter,” Empire said. Sobey’s fourth-quarter same-store sales rose 1%.
Empire added: “Sobeys expects sales growth to continue in fiscal 2012 as a result of continued capital investment in its retail store network and [the] offering, merchandising, pricing and operational execution improvements across the country.”
Click here for the full release from Empire Co.
