Empire Company (EMP-A) Q4 2024 earnings summary

Executive summary

• Q4 F2024 sales were nearly flat at $7,408M; adjusted EPS fell to $0.63 from $0.72 year over year.

• Same-store sales excluding fuel rose 0.2%, while gross margin excluding fuel expanded 68 bps.

• Voilà sales grew 23.5% and same-store sales rose 17.3%; actions to improve profitability included pausing CFC 4.

• Fiscal 2024 share repurchases totaled $400M and the annual dividend increased 9.6%.

• Fiscal 2024 free cash flow was $730.7M, up from $539.2M, aided by asset sales.

Financial highlights

• Q4 net earnings were $148.9M ($0.61 per share), down from $182.9M ($0.72 per share); adjusted net earnings were $154.0M and adjusted EPS was $0.63.

• Q4 sales were $7,408M versus $7,412M a year earlier; fiscal 2024 sales rose 0.8% to $30.73B.

• Q4 gross profit was $2,005M, up 2.4%; gross margin was 27.1%, versus 26.4% a year earlier.

• Adjusted EBITDA was $563M (7.6% margin), down from $599M (8.1%); reported EBITDA was $556.6M (7.5% margin).

• Q4 free cash flow was $104M, versus $209M a year earlier.

Outlook and guidance

• Fiscal 2025 capital spend planned at ~$700M, with half for renovations and new stores and 25% for IT and business development.

• Fiscal 2025 share repurchases planned at ~$400M under the renewed NCIB.

• Fiscal 2025 pre-tax earnings from other income and share of equity earnings expected at $135M–$155M, excluding major gains.

• Long-term adjusted EPS growth target is 8%–11% annually; margin expansion target is 10–20 bps annually over 3–4 years.

• Voilà profitability expected to improve in fiscal 2025 and 2026 as cost actions take effect and CFC expansion remains paused.