STELLARTON, N.S. - Empire Co. Ltd. says the unmitigated financial impact of the proposed minimum wage increases in Ontario and Alberta on its operations could be up to $25 million in its 2018 financial year and $70 million in its 2019 financial year.
The grocery retailer says the estimates represent only the wage increase for people earning less than the anticipated new rates and does not assume any changes to other wage bands.
It says it has developed plans to mitigate the impact in 2018 and is working on plans for 2019.
The estimate follows remarks by Loblaw and Metro which also noted that the rise in the minimum wage rates would increase its costs.
Empire said Thursday it earned $54 million or 20 cents per diluted share on $6.27 billion in sales in the first quarter of its 2018 financial year. That compared with a profit of $65.4 million or 24 cents per share diluted share on nearly $6.19 billion in sales a year earlier.
On an adjusted basis, the company said it earned 32 cents per share in the quarter ended Aug. 5, up from 27 cents per share.
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