Slide 1: Q2 F23 Earnings
Q2 F23 Earnings December 15, 2022
Slide 2: Second Quarter Highlights
Second Quarter Highlights • EPS of $0.73 compared to $0.66 last year; an increase of 10.6% • Same-store sales, excluding fuel, increased by 3.1%. • Gross margin, excluding fuel, increased by 58 basis points. • Net earnings increased by 8.3%. • Project Horizon strategy on track. • Between August and
Slide 3: Second Quarter Financial Summary
Second Quarter Financial Summary Quarter 2 Actual Last Year Sales $7,643 $7,318 Same-store sales, excluding fuel 3.1% (1.3%) Gross Profit $1,955 $1,851 Gross margin % 25.6% 25.3% Selling and Administrative Costs $1,668 $1,554 Selling and administrative % 21.8% 21.2% EBITDA $584 $565 EBITDA margin %
Slide 4: Outlook
Outlook • The Company expects same-store sales will grow in fiscal 2023. • Same-store sales growth was 3.1% compared to a decline of 1.3% in the same quarter last year, and growth of 0.4% in Q1 F23. • Margins will continue to benefit from Project Horizon initiatives and other operating improvements.
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 – 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). F21F21 F22 F22 F23 F23 • The Company invested $255 million in capital expenditures in Q2 (2022 – $189 milli
Slide 7: 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 Q2. The Company expects to open two additional FreshCo stores by the
Slide 8: 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 9: 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 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