This week Albertsons Companies, Inc. reported results for the third quarter of fiscal 2022, which ended December 3, 2022.
Third Quarter of Fiscal 2022 Highlights
- Identical sales increased 7.9%
- Digital sales increased 33%
- Loyalty members increased 16% to 33 million
- Net income of $376 million, or $0.20 per share
- Adjusted net income of $505 million, or $0.87 per share
- Adjusted EBITDA of $1,158 million
“Our team continues to deliver strong performance as we execute against our Customers for Life strategy and bring people together around the joys of food and inspire well-being,” said Vivek Sankaran, CEO. “Our investments in digital transformation, differentiation in Own Brands and Fresh offerings, and the modernization of our operational capabilities contributed to these results. I want to thank all of our teams for their commitment to serving our customers and living our values every day.”
Mr. Sankaran continued, “As we look ahead to the balance of the year and into fiscal 2023, we believe that all of these initiatives position us well to continue to drive top-line growth and deepen our customer and community engagement both online and in-store. At the same time, our ongoing productivity engine is expected to continue to support our investments and partially offset anticipated inflationary cost increases, declines in COVID-19 vaccination and at-home test kit revenue, and macro-consumer headwinds.”
Third Quarter of Fiscal 2022 Results
Net sales and other revenue was $18.2 billion during the 12 weeks ended December 3, 2022 (“third quarter of fiscal 2022”) compared to $16.7 billion during the 12 weeks ended December 4, 2021 (“third quarter of fiscal 2021”). The increase was driven by the retailer’s 7.9% increase in identical sales and higher fuel sales, with retail price inflation as the primary driver of the identical sales increase.
Gross margin rate decreased to 28.2% during the third quarter of fiscal 2022 compared to 28.9% during the third quarter of fiscal 2021. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 47 basis points compared to the third quarter of fiscal 2021. The decrease was primarily driven by increases in product, shrink and supply chain costs, a decline in COVID-related revenue due to administering fewer vaccines, partially offset by increased COVID at-home test kit revenue, and increases in picking and delivery costs related to the growth in digital sales, partially offset by the benefits of ongoing productivity initiatives.