Canadian grocer Sobeys saw sales and profits increase in its last financial year, the company’s owner, Empire Co., reported today (27 June).
Empire said Sobeys put in a “solid” performance in the year to 4 May, with same-store sales at the supermarket group up 1.3%.
Total sales increased to C$17.61bn (US$16.81bn), up 8.4%. Excluding the acquisition of 236 retail gas locations and related convenience store operations in the period, sales were up 2.9%.
Adjusted EBITDA rose to $921.7m, versus $856.2m last year. Net earnings, net of non-controlling interest, totalled $384.8m, compared to $339.4m in the prior year period.
Earlier this month, Sobeys struck a deal to buy the Canadian assets of US retailer Safeway Inc.
Empire said today its acquisition of Safeway’s Canadian estate will allow the group to drive growth by leveraging Sobeys existing asset base.
Empire president and CEO Paul Sobey said: “We are energized by our June 12th announcement to acquire substantially all of the assets of Canada Safeway. This acquisition represents a highly strategic opportunity for Sobeys to leverage its existing asset base and effectively create a new platform for growth.”
Separately, Empire said it will sell 24 of its Atlantic Canadian Empire Theatres to Cineplex. The group indicated the move is in line with its strategic drive to focus on its food retail business.
Click here for our analysis of Sobeys’ deal to buy Safeway’s Canadian business.