Albertsons reports Q2 fiscal 2024 results
Albertsons investments in its Customer for Life strategy drove strong growth in the Boise, Idaho-based retailer’s digital sales and pharmacy operations. So said Vivek Sankaran, CEO in reporting results for the second quarter of fiscal 2024.
Sankaran added, "We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers, and accelerated growth in our Albertsons Media Collective. We want to thank our teams for their ongoing commitment to serving our customers and supporting the communities in which we operate."
Sankaran continued, "As we look ahead to the balance of fiscal 2024, we expect to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of our pharmacy and digital businesses which carry lower margins, and an increasingly competitive backdrop. We expect these headwinds to be partially offset by ongoing and new productivity initiatives."
Albertsons’ net sales and other revenue was $18.6 billion during the second quarter compared to $18.3 billion during the prior year period. The increase was driven by a 2.5% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase.
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The company also reported that it continued to grow its digital sales with a 24% increase during the second quarter of fiscal 2024. Lower fuel sales partially offset the increase in net sales and other revenue, the retailer said.
The retailer's net income was $145.5 million, or 25 cents per share, during the second quarter of fiscal 2024, compared to $266.9 million, or 46 cents per share, during the second quarter of fiscal 2023.
Adjusted net income was $301 million, or 51 cents per share, during the second quarter of fiscal 2024, compared to $367.7 million, or 63 cents per share, during the second quarter of fiscal 2023.
Albertsons' adjusted EBITDA was $900.6 million, or 4.9% of net sales and other revenue, during the second quarter of fiscal 2024 compared to $976.9 million, or 5.3% of bet sales and other revenue, during the second quarter of fiscal 2023.
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The company also reported that loyalty members increased by 15% to 43 million.