AUS
NZ
UK
CA
USA
IND
_06_13_2024_09_51_01_317500.jpg)
Empire Company Limited (TSX: EMP.A) has released its financial results for the fourth quarter and the full year ending May 4, 2024. The company reported net earnings of $148.9 million ($0.61 per share) for the fourth quarter, a decline from $182.9 million ($0.72 per share) in the same period last year. Adjusted net earnings for the quarter stood at $154.0 million ($0.63 per share), compared to $184.9 million ($0.72 per share) last year.
Dividend Declaration
Empire has declared a quarterly dividend of $0.20 per share for both Non-Voting Class A shares and Class B common shares. This dividend will be payable on July 31, 2024, to shareholders of record on July 15, 2024. The announcement reflects a 9.6% increase in the annualized dividend rate. These dividends qualify as eligible dividends under the Income Tax Act (Canada) and applicable provincial legislation.
Company Priorities
Since fiscal 2017, Empire has successfully executed two major transformation strategies, Project Sunrise and Project Horizon. These initiatives have strengthened the company's foundation, improved its data capabilities, enhanced customer insights, and positioned the business to capture emerging market trends effectively. With these transformation strategies now complete, Empire aims to drive long-term growth in total adjusted EPS through net earnings growth and share repurchases. The company plans to continue improving sales, gross margin (excluding fuel), and adjusted EBITDA margin by focusing on several key priorities.
Continued Focus on Stores
Empire has accelerated investments in store renovations, conversions, and new store openings in recent years. The company plans to maintain this focus, with a commitment to renovating approximately 20% to 25% of its store network between fiscal 2024 and fiscal 2026. This capital investment will also include sustainability initiatives such as refrigeration system upgrades and other energy efficiency measures. Enhancements to the Own Brands program will continue, with increased distribution, better shelf placement, and ongoing product innovation.
Enhanced Focus on Digital and Data
Empire's digital and data strategy includes continued e-commerce growth through Voilà, personalization, loyalty programs via Scene+, and improved space productivity. The company aims to enhance the customer experience by optimizing store layouts, product adjacencies, and tailoring product assortments for each store. Advanced analytics tools developed for promotional optimization will be further refined through collaboration between the advanced analytics team and category merchants. These digital and data enhancements will enable Empire to deliver personalized experiences, elevating both in-store and online shopping for customers.
Efficiency and Cost Control
Empire has made significant strides in improving efficiency and cost-effectiveness through sourcing efficiencies, optimizing supply chain productivity, and enhancing systems and processes. The company plans to continue these efforts, focusing on sourcing goods not for resale, improving supply chain productivity, and refining the organizational structure. In the Voilà business, cost savings initiatives include pausing the opening of the fourth Customer Fulfillment Centre and ending mutual exclusivity with Ocado, among other measures.
