Albertsons Companies, Inc. Reports First Quarter Results
Boise, ID - July 24, 2019
Albertsons Companies, Inc. (the "Company") today reported results for the first quarter of fiscal 2019, which ended June 15, 2019.
First Quarter of Fiscal 2019 Highlights
Identical sales increased 1.5%
Adjusted EBITDA increased 7.5% to $877 million compared to last year
Net income of $49.0 million compared to a net loss of $17.7 million last year
Own Brands sales penetration reached 25.3%
Digital and eCommerce sales grew 33%
Net debt leverage reduced to 3.3x at end of first quarter
"I am pleased with the position of our business at Albertsons Companies," said Vivek Sankaran, President and Chief Executive Officer. "Identical sales were positive for the sixth consecutive quarter, and we continue to expand our eCommerce and digital capabilities. We are focused on our sales momentum and will continue to elevate the end-to-end customer experience as we work to create a next-generation food retailer. We recognize the ever-changing retail consumer and are working swiftly to adapt our business to allow customers to shop with us whenever, wherever and however they want."
"We also continue to delever the balance sheet, which will reduce interest expense and increase financial flexibility," added Sankaran.
First Quarter of Fiscal 2019 Results
Sales and other revenue increased 0.5% to $18.74 billion during the 16 weeks ended June 15, 2019 ("first quarter of fiscal 2019") compared to $18.65 billion during the 16 weeks ended June 16, 2018 ("first quarter of fiscal 2018"). The increase was driven by the Company's 1.5% increase in identical sales, partially offset by a reduction in sales related to the stores closed in fiscal 2018 and the first quarter of fiscal 2019.
Gross profit margin increased to 28.0% during the first quarter of fiscal 2019 compared to 27.7% during the first quarter of fiscal 2018. The Company's total gross profit margin benefited from better than expected fuel margins during the first quarter of fiscal 2019. Excluding the impact of fuel, gross profit margin increased 10 basis points compared to the first quarter of fiscal 2018. Improved shrink expense and lower advertising costs were partially offset by industry-wide reimbursement rate pressures in pharmacy.
Selling and administrative expenses decreased to 26.2% of sales during the first quarter of fiscal 2019 compared to 26.7% of sales for the first quarter of fiscal 2018. Excluding the impact of fuel, selling and administrative expenses as a percentage of sales also decreased 50 basis points. The decrease in selling and administrative expenses was primarily attributable to lower acquisition and integration costs as the store system conversions related to the Safeway integration were completed during fiscal 2018 and the continued realization of the Company's cost reduction initiatives, partially offset by higher employee wage and benefit costs.
The following information was filed by Albertsons Companies, Inc. on Wednesday, July 24, 2019 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.