Sobeys parent Empire boosts profit by 8% despite 'cybersecurity event'

Empire Co., the second largest grocery chain in Canada, boosted profit in the second quarter despite a cyberattack that disrupted operations.

Empire has 1,600 stores that include the Sobeys, IGA, Safeway, Foodland, Farm Boy and Fresh Co banners. The company made a profit of $189 million on sales of $7 billion in the third quarter.

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The profit rose over the previous year. The Wall Street Journal reported that the earnings per share was 73 cents.

The sales went up by 4% to $7 billion.

A subsidiary of Shell Canada will acquire Empire's 56 gas stations in Western Canada for about $100 million.

The results came amid heightened scrutiny of the Canadian food business after progressive think-tanks and consumer advocates accused the country's three publicly traded grocery chains. They used the inflation crisis to increase their profits.

As part of a parliamentary inquiry into whether corporate profits are driving food inflation, Pierre St-Laurent, the company's chief operating officer, told a House of Commons committee last week that this was not true.

In the quarter, Empire was hit with a cybersecurity event that shut down its pharmacy for four days and affected self checkouts, gift cards and Scene+ loyalty program.

Empire has been able to operate its retail network with little disruption and no disruption to the supply chain according to the company.

Customer data may have been leaked as a result of the attack. Empire is still looking into the matter. Empire said that if a conclusion is reached that data has been removed from the company's systems, the company will take all required steps.

The email address is jedmiston@nationalpost.com.

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