Empire's comeback continues with strong Q2 results

Empire Co. Ltd. topped expectations as it reported a profit of $103.8 million in its latest quarter compared with a loss in the same period last year.

The company behind Sobeys and Safeway grocery stores in Canada says the profit amounted to 38 cents per share for the quarter that ended Nov. 3. That compared with a loss of $23.6 million or nine cents per share a year ago.

On an adjusted basis, Empire says it earned 40 cents per share for the quarter, up from an adjusted profit of 27 cents per share in the same quarter last year.

Analysts on average had expected a profit of 32 cents per share, according to Thomson Reuters Eikon.

Sales totalled $6.21 billion for the 13-week period, up from nearly $6.03 billion a year ago, boosted by higher fuel prices.

Same-store sales were up 3.2%, while same-store sales excluding fuel were up 2.5%.

READ: Empire launches ‘major transformation’ to revive Sobeys

"In what has been our strongest quarter since we began the transformation of Empire, we are extremely pleased with the top and bottom line numbers the team put up on the board," Michael Medline, Empire's chief executive, said in statement.

"Our trajectory and momentum continue to trend in the right direction with strong sales and tonnage growth, stabilized margins, a significant decline in our costs, and a 48% earnings improvement."