US food and drug retailer Albertsons Companies has recorded $18.80 in net sales and other revenue in the fourth quarter (Q4) of fiscal 2024 (FY24), compared with $18.34bn in the corresponding quarter of the previous fiscal year.
The growth is attributed to a 2.3% increase in identical sales, with pharmacy sales contributing significantly.
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The company’s digital sales experienced a notable surge, increasing 24% during the fourth quarter of fiscal 2024.
The net income of Albertsons for the quarter stood at $171.8m, or $0.29 per share – a decrease from $250.5m, or $0.43 per share, reported in the fourth quarter of fiscal 2023.
The retailer also observed a decline in its gross margin rate to 27.4% in the fourth quarter of fiscal 2024 from 28% in the same period of the previous fiscal year.
Sales and administrative expenses of Albertsons remained consistent over the quarter at 25.7% of net sales and other revenue.
The retailer also reported net losses on property dispositions and impairment losses totalling $36.4m, which is a significant increase from $0.8m reported in the same period of the previous year.
For the full fiscal year 2024, Albertsons’ net sales and other revenue reached $80.39bn, with identical sales growing 2% and digital sales up 24%.
The company’s net income for the full year was $958.6m, down from $1.30bn in the previous fiscal year, resulting in diluted earnings per share of $1.64.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to $4.01bn in FY24.
Albertsons CEO Vivek Sankaran stated: “We delivered solid results in the fourth quarter and closed fiscal 2024 with positive momentum as we continued to invest in our Customers for Life strategy. This strategy has firmly positioned the company for its next chapter of growth and value creation for shareholders. As previously announced, I am retiring as of 1 May 2025 and am delighted that the board of directors has selected Susan Morris to succeed me as CEO. Under Susan’s leadership, I have the utmost confidence that she and the entire team will continue to drive future growth and continue to elevate our role with our customers and our communities.”
In fiscal 2025, Albertsons anticipates identical sales growth between 1.5% and 2.5%, with adjusted EBITDA projected to be between $3.8bn and $3.9bn, which includes an estimated $65m related to an additional week in the fiscal calendar.
The company has planned capital expenditures ranging from $1.7bn to $1.9bn for fiscal 2025.
In March 2024, Kroger submitted its formal response and counterclaims to the lawsuit initiated by rival chain Albertsons over their terminated merger deal.
In December 2024, Albertsons formally called off its $25bn merger with Kroger and is suing the grocer over the failed deal.
