Empire is reporting 8.3% net profit growth for Q2.

The parent of Sobeys, Farm Boy, IGA and FreshCo is reporting net earnings of $189.9 million, compared to $175.4 million last year, for the second quarter ending November 5.

Same-store sales, excluding fuel, grew 3.1%, including double-digit growth for Voilà, according to Michael Medline, Empire’s president & CEO.

This same-store sales growth compares to a decline of 1.3% in the same quarter last year and growth of 0.4% in the first quarter of fiscal 2023. The company reports that its margins will continue to benefit from Project Horizon initiatives and other operating improvements in fiscal 2023. In Q2, the company’s gross margin was 25.6% and its EBITDA margin was 7.6%. Excluding fuel, gross margin was 58 basis points higher than the same quarter last year.

“Despite a persistent inflationary environment, the fundamentals of our business remain strong,” Medline insists. “The continued momentum and solid performance seen across our full service and discount banners are a direct result of our Project Horizon initiatives.”

Project Horizon initiatives focused on loyalty, store optimization and customer experience will also provide financial benefits in fiscal 2024 and beyond, Empire notes.

In August, Empire successfully launched Scene+ at its grocery stores in Atlantic Canada, followed by Western Canada in September and Ontario in November. Additional regional launches expanding the points program in most of the company’s banners are planned across Canada by late fiscal 2023.

In the second quarter of fiscal 2023, the company’s ecommerce platforms experienced combined sales growth of 4.6% compared to the prior year. The increase is primarily driven by the continued growth of Voilà.

As at Dec. 14, Farm Boy has 45 stores and Empire expects to open three additional locations by the end of fiscal 2023. FreshCo’s store count is at 42 and the company expects to open two more by the end of fiscal 2023.