Sobeys and Safeway parent Empire Co. reports Q4 profit up, raises dividend

Empire Co. Ltd. raised its quarterly dividend as it reported its fourth-quarter profit and sales rose compared with a year ago.

The grocery retailer, which operates Sobeys, Safeway and other banners, says it will now pay a quarterly dividend of 22 cents per share, up from 20 cents.

The increased payment to shareholders came as Empire says it earned a profit attributable to owners of the company of $173 million or 74 cents per diluted share for the quarter ended May 3. The result was up from a profit of $149 million or 61 cents per diluted share a year ago.

Sales for the quarter totalled $7.64 billion, up from $7.41 billion in the same quarter last year.

Same-store rose 3% as same-store sales for fuel fell 7.8% driven by lower prices due to the removal of the government carbon tax. Food same-store sales rose 3.8%.

On an adjusted basis, Empire says it earned 74 cents per diluted share in its latest quarter, up from an adjusted profit of 63 cents per diluted share a year ago.