In announcing third quarter financial results, Vivek Sankaran, Albertsons Cos. CEO, stated that the company had positioned itself for future growth, despite a planned merger with The Kroger Co. falling through due to opposition from United States Federal and a group of state governments.
Albertsons beat a Zacks Investment Research analyst consensus earnings estimate of 66 cents per adjusted diluted share and essentially matched a revenues forecast of $18.8 billion.
In the quarter, identical sales increased 2% as net sales and other revenue increased 1.2% to $18.77 billion in the year-prior period. The 2% increase in idents and a digital sales increase of 23% drove the sales increase, partially offset by lower fuel revenues, Albertsons pointed out.
Operating income was $518.5 million versus $566.1 million in the year-before quarter.
In a conference call on company financial results, Vivek Sankaran, Albertsons CEO, said that the past two years spent pursuing the now defunct Kroger merger were not idle ones. Significant investments in the core business and strengthened capabilities and technologies, as well as gains in the company’s loyalty program and digital operations, are among the initiatives that position Albertson’s to make gains in the market, he maintained.
In addressing the company’s performance, he said, “We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious. Investments in our Customers for Life strategy drove increased digital engagement across our platforms, evidenced by strong growth in our digital sales, pharmacy operations and membership in our loyalty program. As we look ahead to the balance of fiscal 2024 and beyond, we are energized about our plans to accelerate growth through our Customers for Life strategy, leveraging investments to enhance digital engagement and omnichannel revenue growth, improve our value proposition with customers, and drive digital media growth. At the same time, we expect our robust productivity agenda to provide fuel to invest in the business. We look forward to driving growth and providing value to our customers and returns to our stockholders.”
