From Empire Company Sept 9 Release (Sobeys Parent Company)In the first quarter of fiscal 2021, the Company launched Project Horizon, a three-year growth plan focused on core business expansion and the acceleration of e-commerce. The Company is on track to achieve a targeted incremental $500 million in annualized EBITDA and an improvement in EBITDA margin of 100 basis points by fiscal 2023 by growing market share and building on cost and margin discipline
In the first quarter of fiscal 2022, earnings continued to be positively impacted by strategic initiatives, including the continued expansion and renovation of the store network, promotional optimization, data analytics and strategic sourcing efficiencies. Benefits were partially offset by the continued investment in the Company’s ecommerce network. Management expects these factors will continue to drive the majority of benefits through the remainder of fiscal 2022.
Gross profit for the first quarter increased by 3.4% primarily as a result of the inclusion of Longo’s results, benefits from Project Horizon initiatives, including the use of advanced analytics promotional optimization tools, and the expansion of Farm Boy, FreshCo and Voil. The increase is partially offset by reduced sales as a result of changes in consumer buying behaviour as COVID-19 restrictions are eased across the country