Slide 1: Q3 F23 Earnings
Q3 F23 Earnings March 16, 2023
Slide 2: Cybersecurity and Project Horizon Update
Cybersecurity and Project Horizon Update Cybersecurity Impact • EPS of $0.49 compared to $0.77 last year. Adjusted EPS of $0.64. • Cybersecurity Event adversely impacted the quarter; operational impacts relating to this event are now resolved. • To compare Q3 fiscal 2023 to Q3 fiscal 2022 EPS, there
Slide 3: Additional News Release Highlights
Additional News Release Highlights • Same-store sales, excluding fuel, increased by 0.1%. • Gross margin, excluding fuel, was flat to last year. • Scene+ will be launched in Quebec and Thrifty Foods on March 23. • The next locations for Farm Boy will be Burlington and Port Credit, Ontario. Empire ha
Slide 4: Third Quarter Key Metric Summary
Third Quarter Key Metric Summary Quarter 3 Actual Last Year Same-store sales, excluding fuel + 0.1% (1.7%) Gross margin, excluding fuel Flat + 41 bps E-commerce (Voilà, Grocery Gateway, IGA.net and ThriftyFoods.com) (14.7%) + 17.0% Store renovations 12 34 Discount West – Total Stores (@ March 15th)
Slide 5: Third Quarter Financial Summary
Third Quarter Financial Summary Quarter 3 Actual Last Year Sales $7,489 $7,377 Same-store sales, excluding fuel 0.1% (1.7%) Gross Profit $1,901 $1,893 Gross margin % 25.4% 25.7% Selling and Administrative Costs $1,694 $1,614 Selling and administrative % 22.6% 21.9% EBITDA $493 $598 EBITDA margin % 6
Slide 6: Outlook
Outlook • The Company expects same-store sales will grow in fiscal 2023. • Margins will continue to benefit from Project Horizon initiatives and other operating improvements in fiscal 2023. • The industry continues to experience heightened levels of inflationary pressures, particularly related to co
Slide 7: 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 50 basis points by fiscal 2023. To be achieved through: Benefits are expected to ramp u
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 F21 F22 F22 F23 F23 • The Company invested $143.4 million in capital expenditures for the quarter ended
Slide 9: 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 the third quarter of fiscal 2023 and opened another store in Alberta
Slide 10: 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 11: Empire's Executive Committee
Empire’s Executive Committee Michael Medline President & Chief Executive Officer Pierre St-Laurent Vivek Sood Matt Reindel Bruce Burrows Simon Gagné Sandra Sanderson Doug Nathanson Mohit Grover Julie van Wyck Chief Operating Related Businesses Chief Financial Chief Information Chief Human Marketing
Slide 12: 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