Slide 1: Q1 F23 Earnings
Q1 F23 Earnings September 15, 2022
Slide 2: First Quarter Highlights
First Quarter Highlights • Earnings per share of $0.71 compared to $0.70 last year. • Same-store sales excluding fuel increased by 0.4%. • Excluding fuel, gross margin increased by 63 basis points. • Other income decreased $14.7 million largely due to gains on lease terminations in the prior year. •
Slide 3: First Quarter Financial Summary
First Quarter Financial Summary Quarter 1 Actual Last Year Sales $7,938 $7,626 Same-store sales, excluding fuel 0.4% (2.2%) Gross Profit $1,978 $1,912 Gross margin % 24.9% 25.1% Selling and Administrative Costs $1,652 $1,597 Selling and administrative % 20.8% 20.9% EBITDA $594 $582 EBITDA margin % 7
Slide 4: Outlook
Outlook • The Company expects same-store sales to be positive in fiscal 2023. • Margins will continue to benefit from Project Horizon initiatives and other operating improvements. • The industry continues to experience inflationary pressures, particularly related to cost of goods sold and fuel. • Al
Slide 5: Project Horizon
Project Horizon Three-year growth strategy for core business expansion and e-commerce acceleration Management targeting an incremental $500 million in annualized EBITDA, driving an improvement in EBITDA margin of 100 basis points by fiscal 2023. Benefits are expected to ramp up over the three-year p
Slide 6: Project Horizon – Discount West Expansion
Project Horizon – Discount West Expansion Empire expects to convert up to 25% of the 255 Safeway and Sobeys full-service format stores in Western Canada to the FreshCo banner. The Company opened one FreshCo store in Alberta during Q1. The Company expects to have 44 FreshCo stores in Western Canada b
Slide 7: Project Horizon – Voilà Timeline
Project Horizon – Voilà Timeline F2019 January 2018 ▪ Sobeys signs agreement with Ocado to bring world’s leading online grocery delivery solution to Canada. ▪ Central Fulfilment Centre (“CFC”) #1 announced in the GTA. F2020 May 2019 – CFC #2 announced in Montreal. F2021 June 2020 – Voilà by Sobeys l
Slide 8: Project Horizon – Store Network Optimization
Project Horizon – Store Network Optimization Number of locations Renovated/Converted • Empire plans to renovate approximately 30% of its store network over the course of Horizon (three years). F21 F22 F23 • The Company invested $156 million in capital expenditures in Q1 (2022 – $147 million), includ
Slide 9: Empire's Executive Committee
Empire’s Executive Committee Michael Medline President & Chief Executive Officer Pierre St-Laurent Vivek Sood Matt Reindel Michael Vels Simon Gagné Sandra Sanderson Doug Nathanson Mohit Grover Julie van Wyck Chief Operating Related Businesses Chief Financial Chief Development Chief Human Marketing G
Slide 10: Disclaimers
Disclaimers Forward-Looking Information This document contains forward-looking statements which are presented for the purpose of assisting the reader to contextualize the Company’s financial position and understand management’s expectations regarding the Company’s strategic priorities, objectives an