Albertsons preps for next stage of growth amid latest financial results

Continued investment in its Customers for Life strategy contributed to Albertsons’ solid results in the fourth quarter and its ability to close fiscal 2024 with positive momentum, said CEO Vivek Sankaran in presenting the company's results.

Sankaran also emphasized that this strategy has firmly positioned the company for its next chapter of growth and value creation for shareholders.

Sankaran, who is retiring on May 1, 2025, said, "I 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." 

[Read more: Albertsons restructures, consolidates divisions]

Susan Morris, COO and incoming CEO, said, "I am thrilled to be taking the helm of our company during this transformational time in our Customers for Life strategy. None of this would be possible without the support of our 285,000 associates who work tirelessly to make it all happen." Morris added, “As we look forward to fiscal 2025 and beyond, we are excited about the investments we have made in our core business, including the growth opportunity inherent in our digital platforms working together to generate deeper engagement, increased digital inventory and acceleration of growth in the Albertsons Media Collective. While fiscal 2025 will be an investment year, beginning in fiscal 2026 we expect to drive growth consistent with our long-term algorithm of 2+% identical sales and Adjusted EBITDA growth higher than identical sales growth."

Albertsons’ net sales and other revenue was $18.8 billion for the quarter compared to $18.3 billion during the prior year period. The increase was driven by Albertsons’ 2.3% increase in identical sales, with strong growth in pharmacy sales being the primary driver of the identical sales increase, the company said.

Albertsons also reported that its digital sales increased 24% during the fourth quarter of fiscal 2024.

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The Boise, Idaho-based retailer's net income was $171.8 million or 29 cents per share during the fourth quarter of fiscal 2024 compared to $250.5 million or $0.43 per share during the fourth quarter of fiscal 2023.

The company’s adjusted net income was $269.5 million, or 46 cents per share during the quarter compared to $318 million, or 54 cents per share during the prior year period. 

The retailer’s adjusted EBITDA was $855.1 million during the quarter compared to $915.8 million during the prior year period. 

Albertsons said its identical sales increased 2.3%, digital sales increased 24%, while loyalty members increased 15% to 45.6 million.

Fiscal 2024 highlights:

• Identical sales increased 2%
• Digital sales increased 24%
• Net income of $959 million, or $1.64 per share
• Adjusted net income of $1.3 billion, or $2.34 per share
• Adjusted EBITDA of $4,005 million

Fiscal 2025 outlook:

The company expects: 

• Identical sales growth in the range of 1.5% to 2.5%
• Adjusted EBITDA in the range of $3.8 billion to $3.9 billion, including approximately $65 million related to the company's 53rd week
• Adjusted net income per Class A common share in the range of $2.03 to $2.16 per share, including approximately 3 cents per share related to the company's 53rd week