WS Investor
15 Jul 2025, 14:44
Albertsons Reports Q1 Fiscal 2025 Results: Solid Sales and Digital Growth, Despite Lower Margins
Albertsons Companies, Inc. (NYSE: ACI) reported its financial results for the first quarter of fiscal 2025, which ended June 14, 2025.
Key Highlights:
• Identical sales rose 2.8% year-over-year.
• Digital sales surged 25%.
• Loyalty program membership climbed 14% to 47.3 million members.
• Net income was $236 million ($0.41 per share); adjusted net income was $319 million ($0.55 per share).
• Adjusted EBITDA totaled $1.11 billion, down from $1.18 billion a year earlier.
CEO Susan Morris noted that continued investments in digital platforms, pharmacy, and loyalty programs enhanced customer engagement and value, while internal efficiencies funded these efforts.
Financial Overview:
• Net sales increased 2.5% to $24.88 billion, driven by higher pharmacy and digital sales, offset by lower fuel sales.
• Gross margin fell to 27.1% from 27.8%, due to pricing investments, pharmacy mix, and digital fulfillment costs.
• Selling and administrative expenses improved to 25.4% of sales, helped by lower merger-related costs and operational efficiencies.
• Capital expenditures reached $584.6 million, including 36 store remodels and 3 new stores.
Outlook for Fiscal 2025 (Updated):
• Identical sales growth now expected between 2.0%–2.75% (up from 1.5%–2.5%).
• Adjusted EBITDA expected at $3.8–$3.9 billion.
• Adjusted EPS guidance remains $2.03–$2.16.
• Capital expenditures forecast unchanged at $1.7–$1.9 billion.
Albertsons also announced a $0.15/share quarterly dividend payable on August 8, 2025, and repurchased $314.8 million in stock during the quarter.
Albertsons Companies, Inc. (NYSE: ACI) reported its financial results for the first quarter of fiscal 2025, which ended June 14, 2025.
Key Highlights:
• Identical sales rose 2.8% year-over-year.
• Digital sales surged 25%.
• Loyalty program membership climbed 14% to 47.3 million members.
• Net income was $236 million ($0.41 per share); adjusted net income was $319 million ($0.55 per share).
• Adjusted EBITDA totaled $1.11 billion, down from $1.18 billion a year earlier.
CEO Susan Morris noted that continued investments in digital platforms, pharmacy, and loyalty programs enhanced customer engagement and value, while internal efficiencies funded these efforts.
Financial Overview:
• Net sales increased 2.5% to $24.88 billion, driven by higher pharmacy and digital sales, offset by lower fuel sales.
• Gross margin fell to 27.1% from 27.8%, due to pricing investments, pharmacy mix, and digital fulfillment costs.
• Selling and administrative expenses improved to 25.4% of sales, helped by lower merger-related costs and operational efficiencies.
• Capital expenditures reached $584.6 million, including 36 store remodels and 3 new stores.
Outlook for Fiscal 2025 (Updated):
• Identical sales growth now expected between 2.0%–2.75% (up from 1.5%–2.5%).
• Adjusted EBITDA expected at $3.8–$3.9 billion.
• Adjusted EPS guidance remains $2.03–$2.16.
• Capital expenditures forecast unchanged at $1.7–$1.9 billion.
Albertsons also announced a $0.15/share quarterly dividend payable on August 8, 2025, and repurchased $314.8 million in stock during the quarter.
