Empire Company Limited, a prominent Canadian corporation specializing in food and fuel retail, has unveiled its first-quarter financial results, showcasing improved earnings driven by robust food sales performance.

The company's net earnings for the quarter rose to C$212 million, up from C$208 million in the same period last year. This growth translated to an increase in earnings per share, which climbed to C$0.91 from C$0.86 in the previous year.

Adjusted EBITDA also saw an uptick, reaching C$671 million compared to C$659 million in the prior year's quarter. Total sales for the period increased to C$8.26 billion, marking a rise from C$8.14 billion reported a year earlier.

The food retail segment was a significant contributor to this growth, with sales expanding to C$7.80 billion from C$7.60 billion in the corresponding quarter last year. Same-store sales in the food category experienced a 1.9% increase.

However, the fuel retail segment faced headwinds, with sales declining to C$467 million from C$541 million in the previous year, primarily attributed to lower fuel prices.

In a move that underscores the company's confidence in its financial position and commitment to shareholder returns, Empire's board of directors has approved an increase in the quarterly dividend. The new dividend of C$0.22 per share for both Class A and Class B common shares represents a 10% increase from the C$0.20 per share distributed in the same quarter last year. Shareholders of record as of October 15 will receive the dividend payment on October 31.

Looking ahead to fiscal 2026, Empire Company has outlined its capital expenditure plans, projecting investments of approximately C$850 million. Additionally, the company has announced its intention to repurchase up to C$400 million of Class A shares during the same fiscal year, further demonstrating its commitment to enhancing shareholder value.

Despite these positive developments, Empire Company's shares experienced a decline in over-the-counter trading, falling 4.66% to $36.24. This market reaction suggests that investors may be digesting the full implications of the company's financial results and strategic initiatives.

As Empire Company continues to navigate the dynamic retail landscape, its focus on strengthening its core food business while managing challenges in the fuel segment will be crucial for sustaining growth and delivering value to shareholders in the coming quarters.