Albertsons Companies, LLC Reports First Quarter Results
Boise, ID - July 31, 2017
Albertsons Companies, LLC ("the Company") today reported results for the first quarter of fiscal 2017, which ended June 17, 2017.
First Quarter Fiscal 2017 Highlights
Accelerated expansion of the Company's eCommerce and digital offerings
Increased penetration of the Company's Own Brands portfolio
Opened ten new stores, including five acquired stores, and remodeled 42 stores
Completed the acquisition of MedCart Specialty Pharmacy
Converted IT systems of 132 Albertsons bannered stores in Southern California
"We remain focused on our customers' needs by providing full, fresh, friendly and clean stores and have accelerated the expansion of our eCommerce and digital offerings," said Bob Miller, Chairman and CEO. "While our identical store sales continued to experience headwinds, they improved sequentially compared to the fourth quarter of fiscal 2016 as deflationary trends in certain categories began to abate and our merchandising plans were tailored to meet our customers' needs. We continue to successfully execute on our Safeway integration plan, and are on track to deliver $800 million in annual run-rate synergies by the end of fiscal 2018. In addition, our Own Brands portfolio continues to have strong growth as we increase penetration with exciting new offerings that are responding well to changing consumer preferences, all at a great value."
Q1 2017 Results
For the 16 weeks ended June 17, 2017 ("first quarter of fiscal 2017"), Net sales and other revenue increased 0.4% to $18.5 billion from $18.4 billion for the 16 weeks ended June 18, 2016 ("first quarter of fiscal 2016"). The increase in sales and other revenue was primarily driven by sales of $309.9 million from new and acquired stores, net of sales related to store closings, and an increase in fuel sales of $131.3 million, partially offset by a decrease of $360.9 million from the decline in identical store sales ("ID Sales").
ID Sales decreased 2.1% in the first quarter of fiscal 2017 compared to an increase of 2.9% in the first quarter of fiscal 2016. During the first quarter of fiscal 2017, ID Sales were impacted by investments in price together with deflation in certain categories, including meat, eggs and dairy.
For the first quarter of fiscal 2017, gross profit margin decreased to 27.4% compared to 27.8% for the first quarter of fiscal 2016. Excluding the impact of fuel, gross profit margin also decreased 40 basis points. The decrease is primarily attributable to investments in price and a temporary increase in supply chain costs related to the integration and conversions of the Company's distribution centers.
For the first quarter of fiscal 2017, Selling and administrative expenses increased to 26.9% of sales, compared to 26.7% of sales for the first quarter of fiscal 2016. Excluding the impact of fuel, Selling and administrative expenses as a percent of sales increased 30 basis points during the first quarter of fiscal 2017 compared to the first quarter of fiscal 2016. The increase in Selling and administrative expenses was primarily attributable to higher depreciation and amortization expense, lower gains on property dispositions and higher employee wage and benefit costs during the first quarter of fiscal 2017 compared to the first quarter of fiscal 2016. These increases were partially offset by lower
The following information was filed by Albertsons Companies, Llc (ABS) on Monday, July 31, 2017 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.