Albertsons Companies, Inc. Reports First Quarter Results
Boise, ID - July 16, 2018
Albertsons Companies, Inc. (the "Company") today reported results for the first quarter of fiscal 2018, which ended June 16, 2018.
First Quarter of Fiscal 2018 Highlights and Update on Fiscal 2018 Outlook
Identical sales increase of 0.2%
Adjusted EBITDA of $815.8 million, an increase of $44.1 million or 5.7%
Gross profit margin, excluding fuel, improved 60 basis points
Fiscal 2018 outlook reaffirmed including 1.5% to 2.0% identical sales growth and Adjusted EBITDA of $2.7 billion
Expanded Own Brands to include over 400 new items
Increased Own Brands sales penetration by 56 basis points to 24.0%
eCommerce sales, including sales of Plated meal kits, grew 108%
Converted 243 stores; on track with the Safeway integration efforts, with all store conversions to be completed by September 2018
"We are pleased with our first quarter results as both identical sales and Adjusted EBITDA increased for the second consecutive quarter," said Bob Miller, Chairman and CEO. "We continue to roll out unique options for our customers as we strive to differentiate through our best in class Own Brands and rapidly expanding eCommerce offerings. We are also reaffirming our fiscal 2018 guidance today and remain on track to deliver annual Adjusted EBITDA of $2.7 billion and complete the store conversions related to the Safeway integration by September, which we expect to allow us to further grow and enhance our operating performance."
"We are also looking forward to our merger with Rite Aid," added Jim Donald, President and COO. "Together we will be a differentiated leader in Food, Health and Wellness. We expect to realize $375 million in annual run-rate cost synergies within three years, and have the opportunity to generate $3.6 billion in annual sales synergies to fuel our future growth."
First Quarter of Fiscal 2018 Results
Sales and other revenue increased $193.4 million, or 1.0%, to $18.7 billion during the 16 weeks ended June 16, 2018 ("first quarter of fiscal 2018") compared to $18.5 billion during the 16 weeks ended June 17, 2017 ("first quarter of fiscal 2017"). The increase in sales was driven by an increase in fuel sales of $154.1 million and the Company's 0.2% increase in identical sales.
Gross profit margin increased to 27.7% during the first quarter of fiscal 2018 compared to 27.4% during the first quarter of fiscal 2017. Excluding the impact of fuel, gross profit margin increased 60 basis points. The increase was primarily attributable to lower advertising costs, improved product mix and lower shrink expense as a percentage of sales compared to the first quarter of fiscal 2017. Shrink expense improved sequentially by 45 basis points from the fourth quarter of fiscal 2017.
The following information was filed by Albertsons Companies, Inc. on Monday, July 16, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.