Empire Company Ltd Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst : I have 2 questions. My first question is on Voila and you -- Michael, you're mentioning the access to the R&D and that you'll be able to use the new generation bot with the Vancouver facility. So Kroger this week also was talking about using those new-generation bots and that's going to lead to a lower cost to build for them on some of their later CFCs. I'm wondering if that's the same case for you? And then if you just think back to when you first did the partnership with Ocado on the Smart platform, have you taken advantage of any other R&D opportunities from Ocado since then to now?

Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And so then my next question really is kind of directed at that -- the gross margin. It was nice to see that you were to build on last year's margin performance there. But when we look at promotional optimization, how should we be thinking about that? Where are you in executing against that? And should we be thinking about something that as the gift that keeps on giving that it will be constantly having reiterations of improving promotional -- optimizing your promotions?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. Just on these new technologies that Ocado is offering up the grid and the robots. I'm just wondering why you're not incorporating that in Calgary? Is it just Calgary is too far down the road in terms of engineering and design at this point?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And when I was reading the Ocado stuff, like they had a little bit of trouble like a labor issue. They just couldn't get enough drivers. I may have asked the same question on the last conference call. But in new market here, are you able to recruit enough drivers to -- for all the vans that are running around the city?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : And when it is a bottleneck, Michael, like what is the constraint? Is it drivers or in the shed like pickers? Or what is the...

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then just like another -- just switching topics here. I think you still have that strike that work stoppage at DC in Quebec. I think it's in Terrebonne. And can you just explain a little bit more in detail how you're working around that? I assume you're using other DCs and direct drop and -- but would that have had a noticeable impact on results as we go through Q4? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2022 / 7:00PM, EMPa.TO - Q3 2022 Empire Company Ltd Earnings Call

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : I was wondering on the difference between delivery and in-store grocery and how they inflate differently given last mile is such a large component of delivery cost and fuel has gone significantly higher. And I know about the view to keep Voila pricing similar to in-store pricing. So I was hoping to get some context. Is there a big difference there on how they're inflating? And if so, how is that managed?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : Okay. Okay. Okay. And then on the same topic, I was hoping you could update me on the spoke model for -- I think, for Vaughan how many spokes it has and the cost for installing them? And how specifically do they improve efficiency?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : How specifically do they improve efficiency?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : Okay. So eventually, these spokes will go across wherever you've installed the CFC over 2x?

Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst : Yes. Sorry about that. My question was, eventually, these spokes will be installed in every market where you have CFCs, is that a correct way to view it?