Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Q4 2022 Earnings Presentation
10 slides from Empire Co Ltd Class A's earnings presentation, Jun 22, 2022
Slide 1: Q4 F2022 Earnings
Q4 F2022 Earnings June 22, 2022
Slide 2: Fourth Quarter Highlights
Fourth Quarter Highlights • Earnings per share of $0.68 compared to $0.64 last year. • Same-store sales excluding fuel decreased by 2.5% compared to COVID-elevated sales levels last year. • Excluding fuel, gross margin increased by 17 bps. • EBITDA margin increased by 10 bps. • Announced new loyalty
Slide 3: Fourth Quarter Financial Summary
Fourth Quarter Financial Summary Quarter 4 Full Year 2022 Actual Last Year Actual Last Year Sales $7,841 $6,920 $30,162 $28,268 Same-store sales, excluding fuel (2.5%) (6.1%) (2.1%) 5.6% Gross Profit $2,004 $1,796 $7,660 $7,199 Gross margin 25.6% 25.9% 25.4% 25.5% Selling and Administrative Costs $1
Slide 4: 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. • The industry continues to experience cost 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. 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 banner. The Company opened three FreshCo locations in Alberta during the fourth quarter, for a total of 12 new stores opened in West
Slide 7: Project Horizon – Voilà Timeline
Project Horizon – Voilà Timeline F2018 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). • The Company invested $273 million and $767 million in capital expenditures for the quarter and fiscal yea
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 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