Slide 1: Q2 F24 Earnings
Q2 F24 Earnings December 14, 2023
Slide 2: 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
Slide 3: Highlights and Outlook: Q2-F24
Highlights and Outlook: Q2-F24 Q2 F2024 Highlights Outlook / Business Updates • Same-store sales, excluding fuel, increased by 2.0%. • Demonstrated resiliency as consumers retrenched slightly as an effect of prolonged inflation and higher interest rates. • Gross margin, excluding fuel, increased by
Slide 4: Second Quarter Financial Summary
Second Quarter Financial Summary Q2 F2024 Results Q2 F24 Q2 F23 ($ million, unless otherwise noted) 13 weeks 13 weeks Sales $7,751 $7,643 Same-store sales (%), excluding fuel 2.0% 3.1% Gross Profit $2,004 $1,955 Gross margin (%)(1) 25.8% 25.6% Selling and Administrative Costs $1,749 $1,668 Selling a
Slide 5: Long-Term Financial Framework
Long-Term Financial Framework In Q4 F23, Empire introduced its long-term financial framework: 8% to 11% Long Term Average Adjusted EPS Growth Driven by our intention to improve Sales, Gross Margin (ex. Fuel), and adjusted EBITDA margin Continued Focus on Stores Enhanced Focus on Digital and Data Eff
Slide 6: Continued Focus on Stores
Continued Focus on Stores Renovations Space Productivity 20% –25% of network over 3 years Improve store layouts, optimize • Sales and margin uplift category/product adjacencies, tailor • Enhanced store productivity assortment BETTER DATA STORE FOCUSED SALES/SQ.FT. • Store department optimization Cus
Slide 7: Enhanced Focus on Digital and Data
Enhanced Focus on Digital and Data Launched and rolled out Scene+, a differentiated national loyalty platform — driving incremental sales and earnings in year one Co-owner Personalization Drive Data Ownership to at Scale Incrementality Drive Insights Differentiated Connected Banners to Drive New Cus
Slide 8: Enhanced Focus on Digital and Data
Enhanced Focus on Digital and Data Key Areas of Focus Superior In-Stock Position Best-in-Class Delivery Experience Substantial Assortment Extremely low substitution rate, White glove delivery 39K SKUs at mature CFCs Differentiated Freshness Ongoing Innovation Loyalty & Personalization Omni-Channel F
Slide 9: Efficiency and Cost Optimization
Efficiency and Cost Optimization Strategic Supply Chain Organization Sourcing Drive efficiency and cost effectiveness • Drive supply chain productivity and • Turnaround Era (F18 - F23): through various initiatives (non- cost effectiveness Transitioned from a regional to exhaustive): national organiz
Slide 10: ESG Goals: Steady and tangible progress
ESG1 Goals: Steady and tangible progress Planet CLIMATE ACTION CLIMATE ACTION CLIMATE ACTION CLIMATE ACTION Near-term Scope 1 and 2 targets 15% 75% We’re reducing our impacts Conducted first climate scenario risk assessment on validated by Science Based Targets operational footprint and published in
Slide 11: Executive Leadership Team
Executive Leadership Team Michael Medline President & Chief Executive Officer Pierre St-Laurent Matt Reindel Sandra Sanderson Doug Nathanson Julia Knox Simon Gagné Chief Operating Officer Chief Financial Officer Chief Marketing Officer EVP, Chief Development Chief Technology and Chief Human Officer