Slide 1: Q3 F2022 Earnings
Q3 F2022 Earnings March 10, 2022
Slide 2: Third Quarter Highlights
Third Quarter Highlights • Earnings per share of $0.77, an increase of 16.7% compared to $0.66 last year. • Management believes net earnings for fiscal 2022 will be higher than the COVID-impacted prior year. • Same-store sales excluding fuel decreased by 1.7% compared to elevated sales last year. •
Slide 3: Third Quarter Financial Summary
Third Quarter Financial Summary Quarter 3 Actual Last Year Sales $7,377.3 $7,018.7 Same-store sales, excluding fuel (1.7%) 10.7% Gross Profit $1,892.7 $1,803.9 Gross margin 25.7% 25.7% Selling and Administrative Costs $1,613.9 $1,508.2 Selling and administrative margin 21.9% 21.5% EBITDA $597.5 $533
Slide 4: Outlook
Outlook • The Company expects that same-store sales will continue to be negative for the remainder of fiscal 2022 as industry volumes decrease compared to the unusually high COVID-19 driven sales levels in fiscal 2021. • Margins will continue to benefit from Project Horizon initiatives, other operat
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. To be achieved through: Benefits are expected to ramp
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 discount format. The Company opened seven FreshCo locations in Alberta during the third quarter and one location subsequent to the e
Slide 7: Project Horizon – Voilà Timeline
Project Horizon – Voilà Timeline January 22, 2018: December 10, 2020: Sobeys signs agreement with Ocado to Location of CFC #3 announced in Calgary, Alberta bring world’s leading online grocery Early CFC 1 Voilà operating metrics: delivery solution to Canada. Weekly on-time delivery score 98.
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). • The Company invested $159.5 million in capital expenditures in the third quarter including renovations an
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 Danielle Amirault Chief Operating Related Businesses Chief Financial Chief Development Chief Human Marketin
Slide 10: Disclaimers
Disclaimers Forward-Looking Information This presentation 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, objective