Empire Co. Ltd., the parent company of Sobeys and other grocery chains, reported stronger-than-expected profit growth in its fourth quarter, with net earnings increasing to $173-million. The Stellarton, N.S.-based company also announced a 10-per-cent increase in its quarterly dividend, driven by market share gains, strong sales at FreshCo and Sobeys, and cost-cutting initiatives, despite lower gas sales.
Sobeys parent Empire beats profit growth estimates, raises dividend
Business
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TL;DR: Key points with love ❤️Empire Co. Ltd., the parent company of Sobeys and other grocery chains, reported stronger-than-expected profit growth in its fourth quarter, with net earnings increasing to $173-million. The Stellarton, N.S.-based company also announced a 10-per-cent increase in its quarterly dividend, driven by market share gains, strong sales at FreshCo and Sobeys, and cost-cutting initiatives, despite lower gas sales.
- 1 Last year (implied 2024): Empire pulled back on Voilà e-commerce expansion and ended its exclusive partnership with Ocado Group PLC.
- 2 Fourth quarter (ended May 3, 2025): Empire Co. Ltd. reported financial results.
- 3 Thursday (June 19, 2025): Empire Co. Ltd. announced its Q4 results and a 10% dividend increase.
- Increased returns for shareholders through a higher dividend
- Improved financial performance for Empire Co. Ltd.
- Strategic shift in e-commerce operations
- Construction of a fourth e-commerce distribution centre in Vancouver remains on hold
What: Empire Co. Ltd. (parent company of Sobeys) beat analysts’ estimates for profit growth in its fourth quarter, reporting net earnings of $173-million (74 cents per share), exceeding expectations of $164.5-million. The company also announced a 10-per-cent increase in its quarterly dividend paid to shareholders. Sales grew to $7.6-billion, up 3 per cent.
When: The fourth quarter ended May 3 (implied 2025). The company reported its results on Thursday (June 19, 2025). Last year (implied 2024), Empire decided to pull back on its Voilà e-commerce expansion.
Where: Stellarton, Nova Scotia (company headquarters). Canada (online groceries market). Vancouver (location of a paused e-commerce distribution centre construction).
Why: Profit growth was driven by market share gains, strong sales performance at FreshCo discount stores and full-service grocery stores (Sobeys, Safeway, IGA), expansion of Farm Boy and FreshCo chains, initiatives to reduce 'shrink' (theft or spoilage), and growth from new partnerships with third-party delivery companies Instacart and Uber Eats for online sales.
How: Empire achieved its results by focusing on sales growth in its grocery divisions, expanding successful store chains, implementing cost-cutting measures, and adapting its e-commerce strategy by partnering with third-party delivery services after scaling back its own Voilà service.