Page 1

EMPIRE COMPANY LIMITED FOR IMMEDIATE RELEASE September 9 , 2021 Empire Delivers Strong Fiscal 2022 First Quarter Results First Quarter Summary Earnings per share of $ 0.70 compared to $ 0.71 last year Same - store sales excluding fuel decreased by 2.2 % compared to elevated sales last year • • • • Project Horizon growth plan on track Excluding fuel , gross margin increased by 40 basis points • $ 133 million of shares repurchased to date ; fully offsetting shares issued as part of the Longo's acquisition Stellarton , NS - Empire Company Limited ( " Empire " or the " Company " ) ( TSX : EMP.A ) today announced its financial results for the first quarter ended July 31 , 2021. For the quarter , the Company recorded net earnings of $ 188.5 million ( $ 0.70 per share ) compared to $ 191.9 million ( $ 0.71 per share ) last year . Earnings per share from the prior year included a net positive impact of $ 0.04 as a result of a gain on a significant real estate transaction partly offset by a lump sum payment related to collective bargaining in Alberta . Excluding this impact , total earnings per share increased by 4.5 % . " We continue to perform strongly and consistently , especially considering we are comparing our results to extraordinary COVID - driven results from last year , " said Michael Medline , President and CEO , Empire . " Sales , market share and margins are robust . I have great confidence in the underlying strength of our business and our team . We are in an enviable position with our execution and Horizon initiatives . " 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 e- commerce network . Management expects these factors will continue to drive the majority of benefits through the remainder of fiscal 2022 . Recently the Company announced the next two locations for the expansion of its FreshCo discount banner in Western Canada . There will be a new site in Cornerstone , Calgary , and the second location is Medicine Hat Mall in Calgary which will be converting from a Safeway store . The Safeway store will close for renovation in the third quarter of fiscal 2022. Both stores are expected to open in the first half of fiscal 2023 . With this announcement , the Company has now confirmed 42 FreshCo locations in Western Canada with 29 open and operating . Empire also recently announced the next location for its expanding Farm Boy banner in Toronto , Ontario . With this announcement , the Company has now confirmed 45 locations in Ontario . The new Farm Boy location is converting from a Sobeys Urban Fresh location by Yonge and St. Clair and will open in fiscal 2023 . Costs related to the store closure and conversion to FreshCo and Farm Boy will be charged to earnings in the second quarter of fiscal 2022 and are estimated to be approximately $ 2.6 million before tax . 115 King Street • Stellarton , NS • BOK 1S0 1