- 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 basis points
- Project Horizon growth plan on track; second year successfully completed
- Announced new loyalty strategy; Scene+ rollout to begin in
Atlantic Canada inAugust 2022 - Annual dividend per share increased 10%
- Repurchased 6.4 million shares (
$249 million ) in fiscal 2022, an increase of 55% over fiscal 2021 - Intention to repurchase
$350 million of shares in fiscal 2023 - Capital investment program for fiscal 2023 expected to be approximately
$800 million
"Despite another quarter with a multitude of external pressures, particularly inflation rates we haven't seen in decades, our teams have been busy executing with excellence," said
PROJECT HORIZON
In the first quarter of fiscal 2021, the Company launched Project Horizon, a three-year strategy focused on core business expansion and the acceleration of e-commerce. The Company remains on track to achieve an incremental
In fiscal 2021, Project Horizon benefits were achieved from the expansion and renovation of the Company's store network, the addition of new stores, improvement in store operations and merchandising from data analytics along with continued efficiencies gained through strategic sourcing initiatives.
In fiscal 2022, earnings continued to be positively impacted by Project Horizon's strategic initiatives, including promotional optimization and data analytics, the continued expansion and renovation of the store network, and strategic sourcing efficiencies. Benefits in fiscal 2021 and fiscal 2022 were partially offset by the planned investment in the Company's e-commerce network.
These initiatives will continue to deliver benefits in fiscal 2023, and additional benefits are expected from strategic initiatives launched more recently as part of Project Horizon, including the Company's new loyalty program, Scene+, which will be rolled out gradually. Project Horizon initiatives focused on loyalty, store optimization and customer experience will primarily benefit fiscal 2024 and beyond.
Dividend Declaration
The Company declared a quarterly dividend of
Normal Course Issuer Bid ("NCIB")
On
The Company intends to repurchase
Based on average daily trading volume ("ADTV") of 382,234 over the last six months, daily purchases will be limited to 95,558 Class A shares (25% of the ADTV of the Class A shares), other than block purchase exemptions.
The Company has also renewed its automatic share purchase plan with its designated broker allowing the purchase of Class A shares for cancellation under its NCIB during trading black-out periods, subject to regulatory approval.
Under the Company's current NCIB, that commenced on
Shares purchased for the quarter and fiscal year ended
14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||||||||
($ in millions, except per share amounts) | ||||||||||||||
Number of shares | 413,100 | 2,079,443 | 6,378,983 | 4,124,260 | ||||||||||
Weighted average price per share | $ | 39.83 | $ | 38.77 | $ | 39.02 | $ | 37.24 | ||||||
Cash consideration paid | $ | 16.5 | $ | 80.6 | $ | 248.9 | $ | 153.6 | ||||||
CONSOLIDATED OPERATING RESULTS
The Company's fiscal year ends on the first Saturday in May. As a result, the fourth quarter and fiscal year are usually 13 weeks and 52 weeks, respectively, but include results for an additional week every five to six years. The quarters ended
($ in millions, except per | 14 Weeks Ended | 13 Weeks Ended | $ | 53 Weeks Ended | 52 Weeks Ended | $ | ||||||||||||
share amounts) | Change | Change | ||||||||||||||||
Sales | $ | 7,840.8 | $ | 6,920.0 | $ | 920.8 | $ | 30,162.4 | $ | 28,268.3 | $ | 1,894.1 | ||||||
Gross profit(1) | 2,004.0 | 1,795.7 | 208.3 | 7,659.7 | 7,199.3 | 460.4 | ||||||||||||
Operating income | 333.6 | 295.0 | 38.6 | 1,363.7 | 1,299.5 | 64.2 | ||||||||||||
EBITDA(1) | 586.2 | 514.4 | 71.8 | 2,330.8 | 2,143.8 | 187.0 | ||||||||||||
Net earnings(2) | 178.5 | 171.9 | 6.6 | 745.8 | 701.5 | 44.3 | ||||||||||||
Diluted earnings per | ||||||||||||||||||
share | ||||||||||||||||||
EPS(2)(3) | $ | 0.68 | $ | 0.64 | $ | 0.04 | $ | 2.80 | $ | 2.60 | $ | 0.20 | ||||||
Diluted weighted average | ||||||||||||||||||
number of shares | ||||||||||||||||||
outstanding (in millions) | 264.0 | 267.6 | 266.2 | 269.3 | ||||||||||||||
Dividend per share | $ | 0.15 | $ | 0.13 | $ | 0.60 | $ | 0.52 |
14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||
Gross margin(1) | 25.6 % | 25.9 % | 25.4 % | 25.5 % | ||||
EBITDA margin(1) | 7.5 % | 7.4 % | 7.7 % | 7.6 % | ||||
Same-store sales(1) (decline) growth | (0.1) % | (4.5) % | 0.0 % | 4.7 % | ||||
Same-store sales (decline) growth, excluding fuel | (2.5) % | (6.1) % | (2.1) % | 5.6 % | ||||
Effective income tax rate | 23.1 % | 19.7 % | 25.0 % | 25.8 % |
(1) See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release. |
(2) Attributable to owners of the Company. |
(3) Earnings per share ("EPS"). |
Outlook
During the fourth quarter of fiscal 2022, the majority of the novel coronavirus ("COVID-19" or "pandemic") restrictions by government agencies were lifted. The Company and industry continues to be affected by COVID-19 as well as additional impacts such as higher than normal inflationary pressures and labour shortages. Given the unpredictability of COVID-19, the Company expects consumer behaviour in fiscal 2023, related to the pandemic, to remain broadly consistent with those experienced through the second half of fiscal 2022.
During the fourth quarter of fiscal 2022, the cost of maintaining safety and sanitization measures was approximately
The industry continues to experience cost inflationary pressures, particularly related to cost of goods sold, including fuel. Although it is difficult to estimate how long these pressures will last, the Company is focused on supplier relationships and negotiations to ensure competitive pricing for consumers.
The industry continues to experience supply chain challenges primarily related to labour shortages. Although it is difficult to estimate the duration of these challenges, management, where necessary remains focused on utilizing alternative sourcing options and does not expect significant adverse impacts to its supply chain.
The Company expects same-store sales will grow in fiscal 2023. Margins will continue to benefit from Project Horizon initiatives and other operating improvements. These benefits could be partially offset by the effect of sales mix changes between banners and the impact of increasing fuel sales.
The Company expects continued improvements in the results of Voilà's
The Company continued the expansion of its discount business in
Management continues to expect to achieve its three-year Project Horizon targets and that associated benefits will continue into fiscal 2024 and beyond, including initiatives launching in fiscal 2023 that are focused on loyalty, store optimization and customer experience.
Sales
Sales for the quarter ended
Sales for the fiscal year ended
Gross Profit
Gross profit for the quarter ended
Gross margin for the quarter decreased to 25.6% from 25.9% in the prior year. Gross margin decreased due to the effect of higher fuel sales, higher supply chain costs, including costs as a result of the strike at the distribution centre in
Gross profit for the fiscal year ended
Operating Income
For the quarter ended
For the fiscal year ended
For the quarter ended
For the fiscal year ended
EBITDA
For the quarter ended
For the fiscal year ended
Income Taxes
The effective income tax rate for the quarter ended
The effective income tax rate for the fiscal year ended
Net Earnings
14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | |||||||||
($ in millions, except per share amounts) | ||||||||||||
Net earnings(1) | $ | 178.5 | $ | 171.9 | $ | 745.8 | $ | 701.5 | ||||
EPS (fully diluted) | $ | 0.68 | $ | 0.64 | $ | 2.80 | $ | 2.60 | ||||
Diluted weighted average number of | ||||||||||||
shares outstanding (in millions) | 264.0 | 267.6 | 266.2 | 269.3 | ||||||||
(1) Attributable to owners of the Company. |
Capital Expenditures
The Company invested
In fiscal 2023, capital spending is expected to be approximately
(1) Capital expenditures are calculated on an accrual basis and includes acquisitions of property, equipment and investment properties, and additions to intangibles. |
Free Cash Flow
14 Weeks Ended | 13 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | ||||||||||
($ in millions) | |||||||||||||
Cash flows from operating activities | $ | 469.5 | $ | 562.3 | $ | 2,107.1 | $ | 1,859.6 | |||||
Add: | proceeds on disposal of assets(1) and lease | ||||||||||||
terminations | 25.5 | 49.7 | 175.6 | 113.7 | |||||||||
Less: | interest paid | (22.0) | (21.7) | (56.2) | (60.4) | ||||||||
payments of lease liabilities, net of payments | |||||||||||||
received for finance subleases | (218.2) | (192.5) | (635.0) | (569.3) | |||||||||
acquisitions of property, equipment, investment | |||||||||||||
property and intangibles | (205.9) | (210.6) | (780.3) | (659.1) | |||||||||
Free cash flow (2) | $ | 48.9 | $ | 187.2 | $ | 811.2 | $ | 684.5 |
(1) Proceeds on disposal of assets include property, equipment and investment property. |
(2) See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release. |
Free cash flow for the quarter ended
Free cash flow for the fiscal year ended
FINANCIAL PERFORMANCE BY SEGMENT
Food Retailing
14 Weeks Ended | 13 Weeks Ended | $ | 53 Weeks Ended | 52 Weeks Ended | $ | |||||||||||||
($ in millions) | Change | Change | ||||||||||||||||
Sales | $ | 7,840.8 | $ | 6,920.0 | $ | 920.8 | $ | 30,162.4 | $ | 28,268.3 | $ | 1,894.1 | ||||||
Gross profit | 2,004.0 | 1,795.7 | 208.3 | 7,659.7 | 7,199.3 | 460.4 | ||||||||||||
Operating income | 321.2 | 279.8 | 41.4 | 1,277.0 | 1,251.3 | 25.7 | ||||||||||||
EBITDA | 573.8 | 499.1 | 74.7 | 2,243.9 | 2,094.7 | 149.2 | ||||||||||||
Net earnings(1) | 165.2 | 158.3 | 6.9 | 677.9 | 673.9 | 4.0 | ||||||||||||
(1) Attributable to owners of the Company. |
Investments and Other Operations
14 Weeks Ended | 13 Weeks Ended | $ | 53 Weeks Ended | 52 Weeks Ended | $ | |||||||||||||
($ in millions) | Change | Change | ||||||||||||||||
Operating income | ||||||||||||||||||
Crombie REIT | $ | 10.7 | $ | 11.8 | $ | (1.1) | $ | 61.0 | $ | 32.7 | $ | 28.3 | ||||||
Genstar | 3.3 | 4.4 | (1.1) | 32.4 | 21.3 | 11.1 | ||||||||||||
Other operations, net of | ||||||||||||||||||
corporate expenses | (1.6) | (1.0) | (0.6) | (6.7) | (5.8) | (0.9) | ||||||||||||
$ | 12.4 | $ | 15.2 | $ | (2.8) | $ | 86.7 | $ | 48.2 | $ | 38.5 | |||||||
For the fiscal year ended
CONSOLIDATED FINANCIAL CONDITION
($ in millions, except per share and ratio calculations) | |||||||
Shareholders' equity, net of non-controlling interest | $ | 4,991.5 | $ | 4,372.7 | $ | 3,924.6 | |
Book value per common share(1) | $ | 18.82 | $ | 16.30 | $ | 14.51 | |
Long-term debt, including current portion | $ | 1,176.7 | $ | 1,225.3 | $ | 1,675.2 | |
Long-term lease liabilities, including current portion | $ | 6,285.4 | $ | 5,908.1 | $ | 5,266.2 | |
Funded debt to total capital(1) | 59.9 % | 62.0 % | 63.9 % | ||||
Funded debt to EBITDA(1) | 3.2x | 3.3x | 3.7x | ||||
EBITDA to interest expense(1) | 8.3x | 8.0x | 6.8x | ||||
Current assets to current liabilities | 0.8x | 0.9x | 0.8x | ||||
Total assets | $ | 16,593.6 | $ | 15,173.9 | $ | 14,632.9 | |
Total non-current financial liabilities | $ | 7,220.0 | $ | 7,187.7 | $ | 6,559.0 |
(1) See "Non-GAAP Financial Measures & Financial Metrics" section of this News Release. |
During fiscal 2022, DBRS Morningstar ("DBRS") confirmed
Rating Agency | Credit Rating (Issuer rating) | Trend/Outlook |
DBRS | BBB (low) | Positive |
S&P | BBB- | Stable |
COMPANY STRATEGY
In the first quarter of fiscal 2021, the Company launched Project Horizon, a three-year strategy focused on core business expansion and the acceleration of e-commerce. For additional detail on Project Horizon, please refer to Empire's Management's Discussion and Analysis ("MD&A") for the fiscal year ended
BUSINESS UPDATES
Farm Boy
The acquisition of Farm Boy on
In fiscal 2023, the Company expects to open four additional Farm Boy stores in
In fiscal 2018, the Company announced plans to expand its
The Company opened three
- 40 stores are open in the following provinces:
- 16 in
British Columbia ("B.C .") - 12 in
Alberta - 6 in
Manitoba - 5 in
Saskatchewan - 1 in
Northern Ontario - 4 stores are expected to open in
Alberta in fiscal 2023
The Company expects to have 44
Business Acquisition
On
Store Closure, Conversion and Lease Terminations
In the fourth quarter and fiscal year ended
During the fourth quarter and fiscal year ended
Ratification of New Collective Bargaining Agreement in
During the first quarter of fiscal 2021, the Company announced the ratification of a new Collective Bargaining Agreement ("CBA") for Alberta Safeway stores with
Voilà
On
The Company will operate four CFCs across
The second CFC in
Crombie REIT has substantially completed the construction of the building for Voilà's third CFC in
In
In fiscal 2021, the Company launched Voilà Curbside Pickup service at 30 store locations across
With four CFCs, their supporting spokes and Curbside Pickup, the Company will be able to serve approximately 75% of Canadian households representing approximately 90% of Canadians' projected e-commerce spend.
The combination of improving results in
In
Other Business Updates
On
On
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 and plans. These forward-looking statements may not be appropriate for other purposes. Forward-looking statements are identified by words or phrases such as "anticipates", "expects", "believes", "estimates", "intends", "could", "may", "plans", "predicts", "projects", "will", "would", "foresees" and other similar expressions or the negative of these terms.
These forward-looking statements include, but are not limited to, the following items:
- The Company's expectations regarding the financial impact and benefits of Project Horizon and its underlying initiatives, which could be impacted by several factors, including resource capacity to execute and the time required by the Company to complete the initiatives;
- The Company's plans to repurchase for cancellation Class A shares under the normal course issuer bid which may be impacted by market and economic conditions, availability of sellers, changes in laws and regulations, and the results of operations;
- The Company's expectation of the impacts of cost inflationary pressures, which may be impacted by supplier relationships and negotiations and the macro-economic environment;
- The Company's expectation that labour shortages will not have further significant impact on supply chain challenges, which may be impacted by labour force availability;
- The Company's expectations that fiscal 2023 will achieve growth of same-store sales, which may be impacted by the duration and impact of COVID-19 on the business, supply chain and consumer behaviour;
- The Company's expectations that fiscal 2022 will reflect the highest net earnings dilution for the Voilà program and that fiscal 2023 net earnings dilution will be marginally better, expectations which may be impacted by future operating and capital costs, customer response and the performance of its technology provider, Ocado;
- The
FreshCo expansion inWestern Canada , and Farm Boy and Longo's expansion inOntario , including the Company's expectations regarding future operating results and profitability, the amount and timing of expenses, the projected number of store openings, and the location, feasibility and timing of construction, all of which may be impacted by construction schedules and permits, the economic environment and labour relations. - The Company's estimates regarding future capital expenditures, which may be impacted by operating results, impacts of COVID-19 and the economic environment; and
- The Company's expectations regarding the timing and amount of expenses relating to the completion of any future CFC, which may be impacted by supply of materials and equipment, construction schedules and capacity of construction contractors.
By its nature, forward-looking information requires the Company to make assumptions and is subject to inherent risks, uncertainties and other factors which may cause actual results to differ materially from forward-looking statements made. For more information on risks, uncertainties and assumptions that may impact the Company's forward-looking statements, please refer to the Company's materials filed with the Canadian securities regulatory authorities, including the "Risk Management" section of the fiscal 2022 annual MD&A.
Although the Company believes the predictions, forecasts, expectations or conclusions reflected in the forward-looking information are reasonable, it can provide no assurance that such matters will prove correct. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The forward-looking information in this document reflects the Company's current expectations and is subject to change. The Company does not undertake to update any forward-looking statements that may be made by or on behalf of the Company other than as required by applicable securities laws.
NON-GAAP FINANCIAL MEASURES & FINANCIAL METRICS
There are measures and metrics included in this news release that do not have a standardized meaning under generally accepted accounting principles ("GAAP") and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. Management believes that certain of these measures and metrics, including gross profit and EBITDA, are important indicators of the Company's ability to generate liquidity through operating cash flow to fund future working capital requirements, service outstanding debt and fund future capital expenditures and uses these metrics for these purposes.
The Company includes these measures and metrics because it believes certain investors use these measures and metrics as a means of assessing financial performance. Empire's definition of the non-GAAP terms included in this News Release are as follows:
- Same-store sales are sales from stores in the same location in both reporting periods.
- Gross profit is calculated as sales less cost of sales.
- Gross margin is gross profit divided by sales.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") is calculated as net earnings before finance costs (net of finance income), income tax expense, depreciation and amortization of intangibles.
The following tables reconciles net earnings to EBITDA:
14 Weeks Ended | 13 Weeks Ended | 13 Weeks Ended | ||||||||
($ in millions) | ||||||||||
Net earnings | $ | 193.4 | $ | 183.3 | $ | 188.8 | ||||
Income tax expense | 58.2 | 45.0 | 66.5 | |||||||
Finance costs, net | 82.0 | 66.7 | 69.0 | |||||||
Operating income | 333.6 | 295.0 | 324.3 | |||||||
Depreciation | 227.8 | 200.2 | 186.7 | |||||||
Amortization of intangibles | 24.8 | 19.2 | 16.8 | |||||||
EBITDA | $ | 586.2 | $ | 514.4 | $ | 527.8 | ||||
53 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||
($ in millions) | ||||||||||
Net earnings | $ | 811.3 | $ | 764.2 | $ | 612.8 | ||||
Income tax expense | 270.3 | 265.9 | 219.9 | |||||||
Finance costs, net | 282.1 | 269.4 | 279.1 | |||||||
Operating income | 1,363.7 | 1,299.5 | 1,111.8 | |||||||
Depreciation | 872.3 | 768.7 | 709.1 | |||||||
Amortization of intangibles | 94.8 | 75.6 | 71.5 | |||||||
EBITDA | $ | 2,330.8 | $ | 2,143.8 | $ | 1,892.4 |
- Management calculates interest expense as interest expense on financial liabilities measured at amortized cost and interest expense on lease liabilities.
- EBITDA margin is EBITDA divided by sales.
- Free cash flow is calculated as cash flows from operating activities, plus proceeds on disposal of property, equipment and investment property and lease terminations, less acquisitions of property, equipment, investment property and intangibles, interest paid, and payments of lease liabilities, net of payments received from finance subleases.
- Book value per common share is shareholders' equity, net of non-controlling interest, divided by total common shares outstanding.
The following table shows the calculation of Empire's book value per common share as at
($ in millions, except per share information) | |||||||||
Shareholders' equity, net of non-controlling interest | $ | 4,991.5 | $ | 4,372.7 | $ | 3,924.6 | |||
Shares outstanding (basic) | 265.2 | 268.3 | 270.4 | ||||||
Book value per common share | $ | 18.82 | $ | 16.30 | $ | 14.51 |
- Funded debt is all interest-bearing debt, which includes bank loans, bankers' acceptances, long-term debt and long-term lease liabilities.
- Total capital is calculated as funded debt plus shareholders' equity, net of non-controlling interest.
The following table reconciles the Company's funded debt and total capital to GAAP measures as reported on the balance sheets as at
($ in millions) | |||||||||
Long-term debt due within one year | $ | 581.0 | $ | 46.5 | $ | 570.0 | |||
Long-term debt | 595.7 | 1,178.8 | 1,105.2 | ||||||
Lease liabilities due within one year | 509.5 | 490.5 | 466.2 | ||||||
Long-term lease liabilities | 5,775.9 | 5,417.6 | 4,800.0 | ||||||
Funded debt | 7,462.1 | 7,133.4 | 6,941.4 | ||||||
Total shareholders' equity, net of non-controlling interest | 4,991.5 | 4,372.7 | 3,924.6 | ||||||
Total capital | $ | 12,453.6 | $ | 11,506.1 | $ | 10,866.0 |
- Funded debt to total capital ratio is funded debt divided by total capital.
- Funded debt to EBITDA ratio is funded debt divided by trailing four-quarter EBITDA.
- EBITDA to interest expense ratio is trailing four-quarter EBITDA divided by trailing four-quarter interest expense.
For a more complete description of Empire's non-GAAP measures and metrics, please see Empire's MD&A for the fiscal year ended
CONFERENCE CALL INFORMATION
The Company will hold an analyst call on
Replay will be available by dialing (888) 390-0541 and entering access code 014993 until midnight
SELECTED FINANCIAL INFORMATION
The following financial information is derived from our audited annual consolidated financial statements for the year ended
Consolidated Balance Sheets | ||||||
As At | ||||||
(in millions of Canadian dollars) | 2022 | 2021 | ||||
ASSETS | ||||||
Current | ||||||
Cash and cash equivalents | $ | 812.3 | $ | 890.5 | ||
Receivables | 558.8 | 547.0 | ||||
Inventories | 1,591.5 | 1,500.1 | ||||
Prepaid expenses | 127.6 | 101.0 | ||||
Leases and other receivables | 73.8 | 91.0 | ||||
Income taxes receivable | 48.7 | 60.5 | ||||
Assets held for sale | - | 3.4 | ||||
3,212.7 | 3,193.5 | |||||
Leases and other receivables | 549.1 | 544.2 | ||||
Investments, at equity | 681.5 | 570.1 | ||||
Other assets | 21.7 | 22.3 | ||||
Property and equipment | 3,159.2 | 2,977.6 | ||||
Right-of-use assets | 4,999.7 | 4,678.9 | ||||
Investment property | 146.8 | 158.6 | ||||
Intangibles | 1,338.5 | 976.0 | ||||
2,059.0 | 1,577.8 | |||||
Deferred tax assets | 425.4 | 474.9 | ||||
$ | 16,593.6 | $ | 15,173.9 | |||
LIABILITIES | ||||||
Current | ||||||
Accounts payable and accrued liabilities | $ | 2,988.9 | $ | 2,874.1 | ||
Income taxes payable | 127.6 | 22.1 | ||||
Provisions | 32.7 | 55.0 | ||||
Long-term debt due within one year | 581.0 | 46.5 | ||||
Lease liabilities due within one year | 509.5 | 490.5 | ||||
4,239.7 | 3,488.2 | |||||
Provisions | 44.2 | 46.5 | ||||
Long-term debt | 595.7 | 1,178.8 | ||||
Long-term lease liabilities | 5,775.9 | 5,417.6 | ||||
Other long-term liabilities | 366.0 | 100.1 | ||||
Employee future benefits | 178.2 | 254.0 | ||||
Deferred tax liabilities | 260.0 | 190.7 | ||||
11,459.7 | 10,675.9 | |||||
SHAREHOLDERS' EQUITY | ||||||
Capital stock | 2,026.1 | 1,969.8 | ||||
Contributed surplus | 37.2 | 25.2 | ||||
Retained earnings | 2,914.2 | 2,363.1 | ||||
Accumulated other comprehensive income | 14.0 | 14.6 | ||||
4,991.5 | 4,372.7 | |||||
Non-controlling interest | 142.4 | 125.3 | ||||
5,133.9 | 4,498.0 | |||||
$ | 16,593.6 | $ | 15,173.9 |
Condensed Consolidated Statements of Earnings | 14 and 13 Weeks Ended | 53 and 52 Weeks Ended | |||||||||
(in millions of Canadian dollars, | |||||||||||
except share and per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||
Sales | $ | 7,840.8 | $ | 6,920.0 | $ | 30,162.4 | $ | 28,268.3 | |||
Other income | 25.8 | 5.1 | 86.8 | 53.0 | |||||||
Share of earnings from investments, at equity | 14.7 | 15.5 | 93.1 | 51.4 | |||||||
Operating expenses | |||||||||||
Cost of sales | 5,836.8 | 5,124.3 | 22,502.7 | 21,069.0 | |||||||
Selling and administrative expenses | 1,710.9 | 1,521.3 | 6,475.9 | 6,004.2 | |||||||
Operating income | 333.6 | 295.0 | 1,363.7 | 1,299.5 | |||||||
Finance costs, net | 82.0 | 66.7 | 282.1 | 269.4 | |||||||
Earnings before income taxes | 251.6 | 228.3 | 1,081.6 | 1,030.1 | |||||||
Income tax expense | 58.2 | 45.0 | 270.3 | 265.9 | |||||||
Net earnings | $ | 193.4 | $ | 183.3 | $ | 811.3 | $ | 764.2 | |||
Earnings for the period attributable to: | |||||||||||
Non-controlling interest | $ | 14.9 | $ | 11.4 | $ | 65.5 | $ | 62.7 | |||
Owners of the Company | 178.5 | 171.9 | 745.8 | 701.5 | |||||||
$ | 193.4 | $ | 183.3 | $ | 811.3 | $ | 764.2 | ||||
Earnings per share | |||||||||||
Basic | $ | 0.68 | $ | 0.65 | $ | 2.81 | $ | 2.61 | |||
Diluted | $ | 0.68 | $ | 0.64 | $ | 2.80 | $ | 2.60 | |||
Weighted average number of common shares | |||||||||||
outstanding, in millions | |||||||||||
Basic | 263.0 | 266.5 | 265.2 | 268.3 | |||||||
Diluted | 264.0 | 267.6 | 266.2 | 269.3 |
14 and 13 Weeks Ended | 53 and 52 Weeks Ended | ||||||||||
Consolidated Statements of Cash Flows | |||||||||||
(in millions of Canadian dollars) | 2022 | 2021 | 2022 | 2021 | |||||||
Operations | |||||||||||
Net earnings | $ | 193.4 | $ | 183.3 | $ | 811.3 | $ | 764.2 | |||
Adjustments for: | |||||||||||
Depreciation | 227.8 | 200.2 | 872.3 | 768.7 | |||||||
Income tax expense | 58.2 | 45.0 | 270.3 | 265.9 | |||||||
Finance costs, net | 82.0 | 66.7 | 282.1 | 269.4 | |||||||
Amortization of intangibles | 24.8 | 19.2 | 94.8 | 75.6 | |||||||
Net gain on disposal of assets | (3.7) | (1.7) | (23.1) | (37.1) | |||||||
Net gain on lease terminations | (23.6) | - | (47.0) | - | |||||||
Impairment (reversals) losses of non-financial | |||||||||||
assets, net | (7.0) | 2.5 | (7.4) | 1.6 | |||||||
Amortization of deferred items | 0.6 | 0.8 | 1.8 | 2.2 | |||||||
Equity in earnings of other entities, net of | |||||||||||
distributions received | (0.9) | (0.7) | 9.5 | 35.7 | |||||||
Employee future benefits | (2.5) | (3.4) | (12.0) | (8.4) | |||||||
Increase (decrease) in long-term provisions | 2.8 | (5.2) | (0.7) | (10.5) | |||||||
Equity based compensation | 6.0 | 4.4 | 14.6 | 11.8 | |||||||
Net change in non-cash working capital | (37.9) | 105.0 | (46.8) | (80.9) | |||||||
Income taxes paid, net | (50.5) | (53.8) | (112.6) | (198.6) | |||||||
Cash flows from operating activities | 469.5 | 562.3 | 2,107.1 | 1,859.6 | |||||||
Investment | |||||||||||
Increase in equity investments | (83.0) | - | (124.5) | - | |||||||
Property, equipment and investment property | |||||||||||
purchases | (128.5) | (117.8) | (633.0) | (566.3) | |||||||
Intangible purchases | (77.4) | (92.8) | (147.3) | (92.8) | |||||||
Proceeds on disposal of assets | 25.5 | 49.7 | 165.6 | 113.7 | |||||||
Proceeds on lease terminations | - | - | 10.0 | - | |||||||
Leases and other receivables, net | 15.7 | (18.8) | 25.4 | (30.2) | |||||||
Other assets and other long-term liabilities | (2.1) | 5.0 | (28.9) | 4.6 | |||||||
Business acquisitions | (6.0) | (5.5) | (242.0) | (15.9) | |||||||
Payments received for finance subleases | 27.3 | 26.4 | 79.4 | 79.1 | |||||||
Interest received | 1.5 | 1.0 | 3.9 | 5.5 | |||||||
Cash flows used in investing activities | (227.0) | (152.8) | (891.4) | (502.3) | |||||||
Financing | |||||||||||
Issuance of long-term debt | 15.2 | 19.5 | 94.6 | 86.4 | |||||||
Repayments of long-term debt | (13.4) | (12.3) | (96.8) | (69.4) | |||||||
Repayments on credit facilities, net | 30.4 | 46.5 | (83.2) | (467.8) | |||||||
Interest paid | (22.0) | (21.7) | (56.2) | (60.4) | |||||||
Payments of lease liabilities (principal portion) | (182.6) | (161.8) | (482.8) | (420.1) | |||||||
Payments of lease liabilities (interest portion) | (62.9) | (57.1) | (231.6) | (228.3) | |||||||
Repurchase of common shares | (16.5) | (80.6) | (248.9) | (153.6) | |||||||
Dividends paid, common shares | (37.6) | (34.6) | (156.8) | (139.4) | |||||||
Non-controlling interest | (6.4) | (1.2) | (32.2) | (22.6) | |||||||
Cash flows used in financing activities | (295.8) | (303.3) | (1,293.9) | (1,475.2) | |||||||
(Decrease) increase in cash and cash equivalents | (53.3) | 106.2 | (78.2) | (117.9) | |||||||
Cash and cash equivalents, beginning of period | 865.6 | 784.3 | 890.5 | 1,008.4 | |||||||
Cash and cash equivalents, end of period | $ | 812.3 | $ | 890.5 | $ | 812.3 | $ | 890.5 |
2022 ANNUAL REPORT
The Company's audited consolidated financial statements and the notes thereto for the fiscal year ended
The Company's 2022 Annual Report will be available on or about
ABOUT EMPIRE
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.
SOURCE
© Canada Newswire, source