Albertsons' Q2 Fiscal 2024 Results – Net Sales Up, Net Income Down

By Bobby Samwell • Tuesday, October 15 15:21 • Permanent Link

Albertsons Companies, Inc. (NYSE: ACI) has reported its second-quarter fiscal 2024 results, which ended on September 7, 2024. The company's net sales and other revenue for the quarter were $18.6 billion, marking an increase from the $18.3 billion in the same period in fiscal 2023. This growth was driven by a 2.5% increase in identical sales, with digital sales also showing a significant increase of 24% during the same period.

The company reported a net income of $146 million, or $0.25 per share, for the second quarter of fiscal 2024. Adjusted net income stood at $301 million, or $0.51 per share, showing a decline from the $367.7 million, or $0.63 per share, reported during the second quarter of fiscal 2023. Adjusted EBITDA for the quarter was $900.6 million, or 4.9% of net sales and other revenue, down from $976.9 million, or 5.3% of net sales and other revenue, in the same period last year.

The company also noted an increase in loyalty members, which grew by 15% to reach 43.0 million. Furthermore, Albertsons reported an increase in capital expenditures, totaling $952.3 million during the first 28 weeks of fiscal 2024, primarily driven by store remodels, new store openings, and continued investment in digital and technology platforms.

However, the company faced challenges such as increased operating expenses related to the development of digital and omnichannel capabilities, merger-related costs, higher employee costs, and increased business transformation costs during the second quarter of fiscal 2024.

Despite headwinds related to investments in associate wages and benefits, an increasing mix of pharmacy and digital businesses carrying lower margins, and an increasingly competitive backdrop, the company remains focused on ongoing and new productivity initiatives to offset these challenges.

Albertsons Companies operates 2,267 retail food and drug stores with 1,726 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities across 34 states and the District of Columbia under more than 20 well-known banners. Today the company's shares have moved 1.3% to a price of $18.5. For the full picture, make sure to review Albertsons's 8-K report.

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