Albertsons Companies Reports First Quarter Fiscal 2022 Results

Albertsons Companies, Inc. reported results for the first quarter of fiscal 2022, which ended June 18, 2022.

First Quarter of Fiscal 2022 Highlights

• Identical sales increased 6.8 percent
• Digital sales increased 28 percent
• Net income of $484 million or $0.84 per share
• Adjusted net income of $582 million or $1 per share
• Adjusted EBITDA of $1,420 million

“In the first quarter, our teams continued to deliver strong operating and financial performance across all key metrics, and we continued to gain market share,” said Vivek Sankaran, CEO. “As we look forward to the balance of the year, while we are thoughtful about the macro environment and the possible implications on consumer behavior, our teams have consistently demonstrated their ability to adapt to a changing back drop-in real time. This puts us in a strong position to continue to execute against our Customers for Life strategy, including more deeply engaging our customers both digitally and in-store and delivering against our productivity agenda. We are so proud of the resilience, agility and passion of our teams and their ongoing service to our customers and communities.”

First Quarter of Fiscal 2022 Results

Net sales and other revenue was $23.3 billion during the 16 weeks ended June 18, 2022 (“first quarter of fiscal 2022”) compared to $21.3 billion during the 16 weeks ended June 19, 2021 (“first quarter of fiscal 2021”). The increase was driven by the Company’s 6.8 percent increase in identical sales and higher fuel sales, with retail price inflation contributing to the identical sales increase.

Gross margin rate decreased to 28.1 percent during the first quarter of fiscal 2022 compared to 29.1 percent during the first quarter of fiscal 2021. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 27 basis points compared to the first quarter of fiscal 2021. The decrease was driven by fewer Covid-19 vaccines in the first quarter of fiscal 2022 compared to last year. The Covid-19 impact was partially offset, however, by the gross margin rate benefits from our productivity initiatives, offset by inflationary increases in product and supply chain costs.

Selling and administrative expenses decreased to 25.2 percent of Net sales and other revenue during the first quarter of fiscal 2022 compared to 25.9 percent during the first quarter of fiscal 2021. Excluding the impact of fuel, Selling and administrative expenses as a percentage of Net sales and other revenue decreased 15 basis points. The decrease in Selling and administrative expenses was primarily attributable to lower Covid-19 related expenses and the execution of productivity initiatives, partially offset by expenses related to the Company’s investments in its digital and omnichannel capabilities and other strategic priorities, increased employee costs and higher depreciation and amortization. The increase in employee costs was the result of market-driven wage rate increases and higher equity-based compensation expense.

Net gain on property dispositions and impairment losses was $79.4 million during the first quarter of fiscal 2022 compared to net loss of $0.3 million during the first quarter of fiscal 2021.

Interest expense, net was $138.9 million during the first quarter of fiscal 2022 compared to $153.3 million during the first quarter of fiscal 2021.

Other income, net was $6.3 million during the first quarter of fiscal 2022 compared to $43.5 million during the first quarter of fiscal 2021.

Income tax expense was $143.3 million, representing a 22.8 percent effective tax rate, during the first quarter of fiscal 2022 compared to $132.5 million, representing a 23.0 percent effective tax rate, during the first quarter of fiscal 2021.

Net income was $484.2 million or $0.84 per share, during the first quarter of fiscal 2022 compared to $444.8 million or $0.78 per share, during the first quarter of fiscal 2021.

Adjusted net income was $582.0 million or $1 per share, during the first quarter of fiscal 2022 compared to $517.5 million or $0.89 per share, during the first quarter of fiscal 2021.

Adjusted EBITDA was $1,420.3 million or 6.1 percent of Net sales and other revenue, during the first quarter of fiscal 2022 compared to $1,308.1 million or 6.2 percent of Net sales and other revenue, during the first quarter of fiscal 2021.

For more information, visit the companies official press release.