SUMMARY
Empire Company Ltd operates over 1,300 retail grocery stores such as Sobeys, IGA, and other labels across Canada announced an 18.5% rise in their first quarter which ended August 1. According to the company, profit has rose from $75.7 million ($1.15 a share) last year to $89.7 million ($1.31). Over the last quarter the company's revenue rose to $3.97 billion, up $190.3 million from the past year. However, Empire's real estate divisions are down 64% in the second quarter of 2008. Chief executive of Empire, Paul Sobey believes, "...operating earnings and financial condition continued to strengthen in the first quarter of fiscal 2010...performance overall is in line with our expectation..."
CONNECTIONS
The article is connected to Chapter one because we learn about the financial section in annual reports. Without the components of the financial section companies would not be able to determine the company's performance and status. The financial section is especially important for both internal and external users. Although there the financial section is only one of the five sections, I believe reading the one section itself will help users have a great understanding of the company, For example, with the financial statements users like Paul Sobey were able to make predictions on Empire's future.
REFLECTION
As I was studying the article, I was very amazed by the numbers from Empire Company Ltd's annual report. It is great that Canadian companies were able to pull through the economic depression we experienced last year and to come back the following year with such pleasing results. I believe the company's numbers would have looked even better if it wasn't for the downturn of its real estate. However, even with the fall, the company seems to be managing and looks like they are off to a good start for the new quarter.
2 comments:
I agree with your opinion, using good financial techniques and strategies can really improve the future of a company or business. Using the statistics of Empire Company, a rise of 18.5% in profits and shares is a very good outcome, even during a global recession. Although the real estate divisions are down by over a half, it is probably one of the leading factors to having such a huge increase in profits and shares for the company. Another important factor that affects all Canadian businesses is most likely the Canadian banking system, keeping the value of Canadian currency and trade in check.
I also find it quite amazing that Empire Company Ltd. could bring itself to such success even though there was an economic depression last year. Not only that, their profits have risen a little over $10 million over the past year. As long as the company keeps up the rate cash flow coming into the company, it's more likely that more people will invest in the company. By looking at the previous successes of a company shown of their financial statements and documents, people will have more confidence that the company they are researching will continue its success and that they won't suffer huge losses due to poor performance of the company.
Post a Comment