Albertsons Reports 2% Identical Sales Growth in Q3 2024

By Tamara Parker • Wednesday, January 08 15:18 • Permanent Link

Albertsons Companies, Inc. has reported its third-quarter fiscal 2024 results, which ended November 30, 2024. The company's identical sales increased by 2.0% compared to the third quarter of fiscal 2023, with digital sales experiencing a significant 23% increase. The number of loyalty members also grew by 15% to 44.3 million.

Net income for the third quarter of fiscal 2024 was $401 million, or $0.69 per share, while adjusted net income stood at $420 million, or $0.71 per share. Adjusted EBITDA was reported at $1,065 million.

Net sales and other revenue increased by 1.2% to $18,774.5 million compared to the same period in the previous fiscal year. The company saw a 23% increase in digital sales and a 2.0% growth in identical sales, driven primarily by strong growth in pharmacy sales.

However, the gross margin rate decreased to 27.9% during the third quarter of fiscal 2024 compared to 28.0% during the third quarter of fiscal 2023. Excluding the impact of fuel and lifo expense, the gross margin rate decreased 27 basis points compared to the third quarter of fiscal 2023.

Selling and administrative expenses increased to 25.1% of net sales and other revenue during the third quarter of fiscal 2024 compared to 24.8% during the third quarter of fiscal 2023.

The company also increased its quarterly common stock dividend by 25% to $0.15 per share.

The fiscal 2024 outlook includes an updated range for identical sales growth, adjusted EBITDA, adjusted net income per class A common share, and the effective income tax rate. The company now expects the effective income tax rate to be in the range of 15% to 16%, down from the previous estimate of 23%.

Albertsons Companies operated 2,273 retail food and drug stores with 1,732 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities as of November 30, 2024, across 34 states and the District of Columbia.

The company will hold a conference call to discuss these results, and the webcast can be accessed at the company's investor relations website. Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $19.73. For the full picture, make sure to review Albertsons's 8-K report.

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