Albertsons Companies Inc (NYSE:ACI) reported first-quarter FY24 sales growth of 0.9% year-on-year to $24.27 billion, beating the analyst consensus estimate of $24.14 billion.
The increase was driven by a 1.4% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase. Digital sales increased 23%.
Gross margin rate expanded 10 basis points to 27.8%. The operating margin was 1.9%, and operating income for the quarter declined 26.1% to $459.6 million.
The company held $291.1 million in cash and equivalents as of June 15. Operating cash flow totaled $960.9 million.
Adjusted EBITDA of $1.183 billion decreased 10.2% Y/Y. Adjusted EPS of $0.66 missed the consensus estimate of $0.67.
Net debt totaled $7.57 billion as of June 15, 2024. Net debt ratio was 1.81.
"Our Customers for Life strategy is placing the customer at the center of everything we do, and we continued to drive strong year-over-year growth in loyalty members as we launched our new simplified 'for U' loyalty program. Amidst an evolving economic and industry backdrop, we continued to deliver outsized growth in our digital and pharmacy businesses," said CEO Vivek Sankaran.
Recently, Kroger Co. (NYSE:KR) reportedly revealed the comprehensive list of stores, distribution centers, and plants it plans to divest to gain regulatory approval for its proposed merger with Albertsons.
Price Action: ACI shares are trading higher by 0.75% at $20.09 at last check Tuesday.
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