Empire Company Limited ('Empire' or the 'Company') (TSX: EMP.A) today announced its financial results for the first quarter ended August 1, 2020.

For the quarter, the Company recorded net earnings of $191.9 million ($0.71 per share) compared to $130.6 million ($0.48 per share) last year, an increase of 47%.

'The momentum at Empire - at all levels of the Company - is remarkable,' said Michael Medline, President & CEO, Empire. 'The team is moving with velocity and is laser-focused on our Project Horizon goals. Since fiscal 2021 started, we launched Project Horizon, our new three-year strategy for growth, Voila by Sobeys went live in the GTA, our Farm Boy and FreshCo expansions continued, we ratified a key labour agreement in the West, launched a new national brand campaign for our Compliments private label lineup, and our debt was upgraded to investment grade. On top of that, we continue to see strong market share growth.' In the first quarter of fiscal 2021, the Company launched its new three-year strategy, Project Horizon, a growth plan focused on core business expansion and e-commerce acceleration. The Company is targeting an incremental $500 million in annualized EBITDA and an improvement in EBITDA margin of 100 basis points by fiscal 2023 by (i) growing market share and (ii) building on its cost and margin discipline. The Company also announced today the next two locations for the expansion of its FreshCo discount banner in Western Canada. With this announcement, the Company has now confirmed 30 of approximately 65 locations in Western Canada. The Alberta FreshCo store location announced today is a new site located in Grand Prairie. The store is expected to open in the winter of fiscal 2022. The second FreshCo location announced today is located in Saskatchewan and will be converting from a Regina Sobeys store. The Sobeys store will close for renovation in the winter of fiscal 2022 and will re-open as FreshCo that summer. Costs related to the Sobeys store closure and conversion to FreshCo will be charged to earnings in the second quarter of fiscal 2021 and are estimated to be approximately $1.3 million before tax.

ABOUT EMPIRE

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire's key businesses are food retailing and related real estate. With approximately $27.2 billion in annual sales and $14.8 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 127,000 people. Additional financial information relating to Empire, including the Company's Annual Information Form, can be found on the Company's website at www.empireco.ca or on SEDAR at www.sedar.com.

Contact:

Tel: (905) 238-7124

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