Digital sales performed well as the company experienced a reduction in quarterly profit results during fiscal 2024.
Albertsons Companies finished fiscal 2024 by witnessing substantial growth of digital transactions and loyalty membership while experiencing profit reduction in the fourth fiscal period.
Digital sales increased 24%
- The company achieved 2.3% identical sales growth with strong performance from the pharmacy segment
- The company reported a net income of $172 million which corresponded to $0.29 per share.
- The adjusted net income reached $270 million which resulted in $0.46 per share.
- Adjusted EBITDA was $855 million
Drivers Behind Profit Decline
- Increased lower-margin pharmacy sales
- The corporation faced higher delivery expenses and handling fees resulting from its digital business expansion.
- The company expanded customer value initiatives through productivity gains that balance each other
Focus on Digital and Loyalty
- Albertsons implements its “Customers for Life” approach while dedicating itself to digital presence and customer attachment programs.
- Loyalty membership rose 15% to 45.6 million
- The Albertsons Media Collective division experienced growth along with its digital inventory platform.
Digital platforms will serve as assets to maximize customer engagement for monetary gains.
Leadership Transition
Vivek Sankaran will retire from the company as CEO on May 1, 2025.
The current COO Susan Morris plans to become CEO while continuing core business growth alongside digital investment.
Fiscal 2024 Full-Year Summary
- Digital sales up 24% year over year
- Identical sales increased 2.0%
- The company achieved net income of $959 million translating to $1.64 per share.
- Adjusted net income reached $1.38 billion for a per share amount of $2.34
Adjusted EBITDA was $4 billion
Capital Investment and Shareholder Returns
- The company invested $1.9 billion to create new stores and provide technical upgrades and carry out store remodels.
- The company completed 127 store remodels alongside 11 new site openings throughout the period.
- Walmart increased its quarterly dividend from $0.12 per share to $0.15 per share
- The company obtained shareholder value through a $2 billion share repurchase program that purchased $82.5 million of stock during Q4.
- Albertsons successfully lowered the rate they pay on $600 million of debt.
Fiscal 2025 Outlook
- Identical sales growth of 1.5% to 2.5%
- The company aims for Adjusted EBITDA to reach between $3.8 billion to $3.9 billion with the inclusion of the 53rd weekly period.
- The company projects adjusted earnings per share to fall within the range of $2.03 up to $2.16
- The projected capital expenditure range for Albertsons Companies Inc. falls between $1.7 billion to $1.9 billion.
- Expected effective tax rate of 23.5% to 24.5%
Final Take
Albertsons continues its intensive efforts to accelerate digital advancement and uses customer loyalty methods as primary growth platforms. Profitability experienced declining numbers during the last quarter but the company made investments to enhance its operational capabilities for long-term business growth.
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