Albertsons Companies Reports Fourth Quarter and Fiscal 2017 Results
Boise, ID - April 11, 2018
Albertsons Companies, Inc. (the "Company") today reported results for the fourth quarter of fiscal 2017 and fiscal year 2017, which ended February 24, 2018.
Fourth Quarter and Fiscal 2017 Highlights
Identical store sales, excluding fuel were positive at 0.6% in the fourth quarter
Net income was $388 million in the quarter, which includes an income tax benefit of $373 million
Adjusted EBITDA was $712 million, or 5.1% of sales, up $25 million in the quarter compared to last year; the Company's strongest fourth quarter since the acquisition of Safeway
Own Brands sales penetration increased 60 basis points to 23% in fiscal 2017 compared to last year
Instacart same day delivery offered in over 1,300 stores at end of fiscal 2017; targeting more than 2,000 stores in fiscal 2018
Drive-up and Go pick-up available in over 100 stores at end of fiscal 2017; targeting more than 500 stores in fiscal 2018
Announced Merger Agreement with Rite Aid, creating a leader in food, health and wellness
"We are very encouraged by the trends in our business as we returned to positive identical store sales and saw operating income and Adjusted EBITDA improvements during the fourth quarter," said Bob Miller, Chairman and CEO. "We expect to continue the positive momentum into fiscal 2018 with identical store sales growth, as we continue to build and expand our digital offerings to enhance loyalty in store and online, including the recent announcement of a new digital marketplace, which is being launched to expand selection for our customers later this year. In addition, we continue to enhance our Own Brand offerings and increase sales of these high-quality items that are unique to our stores. We believe that these efforts, together with incremental synergies from the Safeway acquisition and the additional cost reduction initiatives we outlined last quarter, will result in Adjusted EBITDA of approximately $2.7 billion in fiscal 2018."
"We are also looking forward to our merger with Rite Aid, which will create a leader in food, health and wellness, with excellent presence on the west coast and a strong position in the northeast," added Miller. "We will be uniquely positioned to serve our customers' needs. We expect to realize significant synergies, both increasing revenues and reducing our costs, that in turn should improve shareholder returns and enable us to reduce debt and enhance financial flexibility."
Q4 2017 Results
Sales and other revenue increased $217.1 million, or 1.6%, to $14.0 billion during the 12 weeks ended February 24, 2018 ("fourth quarter of fiscal 2017") from $13.8 billion during the 12 weeks ended February 25, 2017 ("fourth quarter of fiscal 2016"). The increase in sales was primarily driven by the Company's 0.6% increase in identical store sales and higher fuel sales. The Company's identical store sales growth during the quarter benefited from improvements in customer traffic trends and an increase in average ticket.
Gross profit margin decreased to 28.1% for the fourth quarter of fiscal 2017 compared to 28.5% for the fourth quarter of fiscal 2016. Excluding the impact of fuel, gross profit margin decreased 30 basis points. The decrease was primarily
The following information was filed by Albertsons Companies, Inc. on Wednesday, April 11, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.