US supermarket chain Albertsons Companies has reported a 1.2% increase in net sales and other revenue, reaching $18.77bn for the third quarter (Q3) of fiscal 2024 (FY24), compared to $18.56bn in the same period of the previous year.
The company primarily attributes this growth to a 2% rise in identical sales, with pharmacy sales a significant contributor.
Go deeper with GlobalData
The retailer also saw its digital sales surge by 23% in Q3 FY24, though somewhat offset by lower fuel sales.
Net income for the quarter stood at $400.6m, an improvement from $361.4m in the same period of the previous year.
Its basic income per diluted share was $0.69, up from $0.62 per share in Q3 FY23.
Despite these gains, Albertsons experienced a slight dip in gross margin rate to 27.9% during the quarter, down from 28% the year before.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe decrease is attributed to the lower margin rate of pharmacy sales and increased costs associated with picking and delivery for digital sales, despite productivity initiative benefits.
The grocer’s selling and administrative expenses rose to 25.1% of net sales and other revenue, up from 24.8%.
The company reported a net loss on property dispositions and impairment losses of $10.2m – an improvement on the $23.9m loss recorded in the previous year.
Albertsons CEO Vivek Sankaran said: “We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious.
“Investments in our Customers for Life strategy drove increased digital engagement across our platforms, evidenced by strong growth in our digital sales, pharmacy operations and membership in our loyalty programme.”
In December 2024, Albertsons terminated its proposed merger with Kroger after facing legal challenges that raised competition concerns.
Albertsons is seeking a $600m termination fee and compensation for merger-related expenditures.
Looking ahead to the remainder of fiscal 2024, Albertsons has updated its forecast, anticipating identical sales growth between 1.8% and 2.0%, slightly narrowed from its previous projection of 1.8% to 2.2%.
However, the company is cautious about potential risks and uncertainties that could impact future results, including ongoing litigation related to the failed merger with Kroger and challenges in optimising value-creating initiatives post-merger termination.
