Empire Company Limited has announced its financial results for the third quarter ended February 4, 2023. For the quarter, the company recorded net earnings of $125.7 million ($0.49 per share)—as the company rebounds from a cybersecurity event that occurred in the quarter—compared to $203.4 million ($0.77 per share) last year.
In its reported results, the company excluded the estimated impact of the November 2022 cybersecurity event in its adjusted metrics and recorded adjusted net earnings of $164.8 million ($0.64 per share). As reported: Management considers that the cybersecurity event temporarily reduced sales, and operational effectiveness, including impacts such as the temporary loss of advanced planning, promotion and fresh item management tools. This is estimated to have impacted third quarter net earnings by at least ($15.0) million (($0.06) per share). Consistent with regulatory guidance, these estimated impacts are not included in the adjustments above.
The prior year's EPS of $0.77 included $0.14 related to unusually large lease termination income and higher property sales from Crombie Real Estate Investment Trust.
"As this stubbornly high inflationary environment persists, and despite the challenges we faced due to the Cybersecurity Event, we delivered solid results, highlighting how much stronger we have become over the last six years. We look forward to inflation abating, which benefits Empire and all Canadians," said Michael Medline, president & chief executive officer, Empire. "This quarter we continued to advance our strategic initiatives, including efforts to expand the impact of our best-in-class grocery home delivery service Voilà and finalize our Scene+ launch across Canada."
The company has also announced that Longo's e-commerce business, Grocery Gateway, will be integrated into Voilà.