First quarter earnings decline for Sobey’s parent
First quarter earnings decline for Sobey’s parent
Empire Co. Ltd., the Stellarton, NS-based parent company of Canadian supermarket chain Sobey’s, reported a 14 percent drop in its first quarter earnings. The decline is due to costs related to the integration of its Safeway business.
"Clearly there has been a significant amount of change in our Safeway business as we focus on the integration," Marc Poulin, president and chief executive officer of Empire, said in the company's earnings report. "Although we had identified the various risks associated with integration, including the amount and pace of change required, we underestimated the impact and the time needed for the organization to adapt to those changes.”
Adjusted net earnings were $121.7 million, down 5.7 per cent from $129.1 million. Sales were up $26.5 million or 0.4 per cent to $6.25 billion from $6.22 billion.
Poulin said that management had identified core issues and would use the necessary resources to ensure “we bring our performance back in line with our expectations in the coming quarters.”