Albertsons’ Q3 delivers in operating, financial performance
Despite an environment where consumers remain cautious, Albertsons delivered solid operating and financial performance in the third quarter of fiscal 2024. So said Vivek Sankaran, CEO of Albertsons in reporting the companies’ third quarter 2024 results.
"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 program. We want to thank our teams for their ongoing commitment to serving our customers and supporting the communities in which we operate, especially during the holiday season," Sankaran said.
Sankaran added, "As we look ahead to the balance of fiscal 2024 and beyond, we are energized about our plans to accelerate growth through our Customers for Life strategy, leveraging investments to enhance digital engagement and omnichannel revenue growth, improve our value proposition with customers, and drive digital media growth. At the same time, we expect our robust productivity agenda to provide fuel to invest in the business. We look forward to driving growth and providing value to our customers and returns to our stockholders."
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The Boise, Idaho retailers' net sales and other revenue increased 1.2% to $18.8 billion for the quarter from $18.6 billion during the prior year period. The increase was driven by the company's 2% increase in identical sales, with strong growth in pharmacy sales being the primary driver of the identical sales increase, Albertsons said.
The company also continued to grow digital sales with a 23% increase during the third quarter of fiscal 2024. The increase in net sales and other revenue was partially offset by lower fuel sales, the company noted.
Albertsons also reported that loyalty members increased 15% to 44.3 million.
The retailer's net income was $400.6 million, or 69 cents per share, during the third quarter of fiscal 2024, compared to $361.4 million, or 62 cents per share, during the third quarter of fiscal 2023. The third quarter of fiscal 2024 included the $81 million or 14 cents per share benefit related to certain discrete state income tax benefits related to the settlement of audits.
Albertsons' adjusted net income was $420.3 million, or 71 cents per share, during the third quarter of fiscal 2024, compared to $462.3 million, or 79 cents per share, during the third quarter of fiscal 2023.
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The retailers' adjusted EBITDA was $1.1 billion, or 5.7% of net sales and other revenue, during the third quarter of fiscal 2024 compared to $1.1 billion, or 6% of net sales and other revenue, during the third quarter of fiscal 2023.
[Read more: Albertsons Media Collective debuts framework to improve retail media transparency]
Albertsons is providing an updated fiscal 2024 outlook and expects its financial results to be as follows:
- Identical sales growth in the range of 1.8% to 2.0% (previously 1.8% to 2.2%)
- Adjusted EBITDA in the range of $3.95 billion to $3.99 billion (previously $3.90 billion to $3.98 billion)
- Adjusted net income per Class A common share in the range of $2.25 to $2.31 per share (previously $2.20 to $2.30 per share)