Albertsons reports $18B in revenue ‘amidst a difficult industry backdrop’

Albertsons reported revenue of $18.3 billion for the fourth quarter ended Feb. 24, mirroring its revenue performance year over year. 

The fourth-quarter results were driven mainly by a 1% increase in identical sales, which were partially offset by wholesale revenue and lower fuel sales, the company said. The identical sales performance was due to growth in pharmacy sales.

The grocer also reported that its digital business grew by 24% during the fourth quarter, while participation in its loyalty program grew 16% to 39.8 million members. 

Albertsons reported a net income of $251 million ($0.43 per share), an adjusted net income of $318 million ($0.54 per share), and an adjusted EBITDA of $916 million.

For its fiscal year 2023 results, Albertsons increased identical sales by 3% and digital sales by 22%. Net income in 2023 was $1.3 billion ($2.23 per share), while adjusted net income hit $1.7 billion ($2.88 per share), and adjusted EBITDA reached $4.3 billion for the year. 

"We delivered another solid quarter amidst a difficult industry backdrop," said Vivek Sankaran, CEO, in a prepared statement. "Again this quarter, we focused on our strategy to create customers for life, which drove strong growth in digital and pharmacy, deepened our omnichannel relationships with our customers and improved our in-store experience. We are pleased with our fiscal 2023 financial results, particularly in omnichannel where we have increased our investments in technology, digital and in-store customer experience, and supply chain operations."

He added that the company faces “ongoing headwinds” from investments in associate wages and benefits, food inflation, cuts in government benefits, and reduced COVID-era income. 

“We expect these headwinds to be much stronger in the first half of fiscal 2024. These headwinds are expected, however, to be partially offset by ongoing productivity initiatives," he said.

The company said in a press release that its attempted $24.6 billion merger with Kroger still poses risks to its future performance. 

Kroger made its own news on Monday, announcing it is adding 166 stores to its divestiture plan, bringing the total number of stores it plans to sell to C&S Wholesale Grocers to 579. 

That acquisition faces an uphill battle with the Federal Trade Commission, which joined with attorneys general in eight states and the District of Columbia in late February to block the proposed deal. AGs in Colorado and Washington state have filed separate lawsuits to block the deal.