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

Premium Insights

The gold standard of business intelligence.

Find out more

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.

See Also:

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Sobeys’ 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.