Empire Co Ltd Class A · TSX:EMP.A
Empire Co Ltd Class A — Q3 2024 Earnings Presentation
13 slides from Empire Co Ltd Class A's earnings presentation, Mar 14, 2024
Slide 1: Q3 F24 Earnings
Q3 F24 Earnings March 14, 2024
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: Q3-F24
Highlights: Q3-F24 Q3 F2024 Highlights Outlook / Business Updates • Same-store sales, excluding fuel, increased by 1.9%. The SSS gap between Full • The Company continues to be well positioned to pursue long-term growth Service and Discount has narrowed. despite the impacts of global economic uncerta
Slide 4: Financial Summary: Q3-F24
Financial Summary: Q3-F24 Q3 F2024 Q3 F24 Q3 F23 YTD F24 YTD F23 ($ million, unless otherwise noted) 13 weeks 13 weeks 39 weeks 39 weeks Sales $7,494 $7,489 $23,321 $23,070 Same-store sales (%), excluding fuel 1.9% 0.1% 2.6% 1.1% Gross Profit $1,987 $1,901 $6,065 $5,834 Gross margin (%)(1) 26.5% 25.
Slide 5: Supplementary Segment Details: Q3-F24
Supplementary Segment Details: Q3-F24 13 Weeks Ended February 3, 2024 February 4, 2023 Additional Comments: Investments Investments and other Food and other • Other income attributable to (in millions of Canadian dollars) Food retailing operations Total retailing operations Total the Food retailing
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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
Slide 13: Appendix 1: Other Income and Share of Earnings from Equity Investments – Historical
Appendix 1: Other Income and Share of Earnings from Equity Investments – Historical Other Income and Share of Earnings from Equity Investments (combined, as a percentage of adjusted EBITDA) varies by quarter, but on an annual basis, is consistently in the mid-single-digit range. Q1/F20 Q2/F20 Q3/F20