Sobeys gives Empire revenue growth
STELLARTON, N.S.–The Sobeys grocery chain gave a strong push to revenue growth in the latest quarter at Empire Co., although the diversified holding company's real-estate and investment activities proved to be a drag on profitability.
Overall revenue for the Nova Scotia-based company rose to $3.71 billion in the fiscal fourth quarter ended May 2, up 4.2 per cent from $3.56 billion in the same period last year.
Sobeys' revenue equalled $3.65 billion, an increase of $170.8 million or 4.9 per cent compared to the fourth quarter last year while same-store sales, an important measure in the retail industry, increased 4.6 per cent.
The company attributed the increase at Sobeys to a combination of increased retail space, improved operational efficiency and retail food price inflation – a general trend experienced by Canadians in the first part of this year.
Empire's overall net income for the quarter fell to $63 payday loans in one hour.6 million or 96 cents per share, down from $66.5 million or $1.01 per share in the fourth quarter of fiscal 2008.
Although the operating income of Sobeys was down slightly, most of the decline in profitability was at Empire's real-estate and investment units. The real-estate division's operating income fell to $8.7 million from $27.2 million, while operating income from investments shrivelled to $300,000 from $4.7 million.
Sobeys operating income slipped to $102.6 million from $104.3 million.
The lower operating income was partially offset by reduced capital losses. In the fourth quarter of 2008, Empire recorded $7.1 million in capital losses compared with just $800,000 of capital losses in the most recent quarter.
Empire's shares traded Friday at $46.64, up 32 cents, on the Toronto Stock Exchange.
Filed under: marketing by Fred