US retailer Albertsons Companies saw net sales and other revenue increasing to $18.6 billion (€17 billion) in the third quarter of its financial year from $18.2 billion (€16.6 billion) in the same period in the previous financial year.
Albertsons attributed this growth to a 2.9% increase in same stores sales, driven by robust growth in pharmacy sales.
The retailer also saw 21% year-on-year growth in digital sales in this period.
Vivek Sankaran, CEO of Albertsons Companies said, "We delivered another solid quarter amidst a challenging economic backdrop.[...]
"As we look ahead, our ambition is to create customers for life, in part through our focus on operational excellence in our stores, driving growth in our digital and pharmacy operations, and deepening our relationships with our customers."
Quarterly Highlights
Net income for the quarter amounted to $361.4 million, or $0.62 per share, registering a decline from $375.5 million, or $0.20 per share, last year.
Adjusted EBITDA for the period amounted to $1.11 billion, or 6.0% of net sales and other revenue, down from $1.15 billion, or 6.4% of net sales and other revenue.
Sankaran added, "While we are benefiting from our productivity initiatives, we expect to continue to see the impacts of investments in associate wages and benefits, cycling significant prior year food inflation, customers receiving less government assistance, the resumption of student loan payments and other types of payment deferrals, inflationary cost increases and the outsized growth of our pharmacy and digital businesses as we continue to lean into increased customer engagement in our 'Customers for Life' strategy."
In October 2022, Kroger Co snapped up Albertsons in a $25 billion deal, creating a US grocery behemoth to better compete with leader Walmart Inc on prices while bracing for antitrust scrutiny.
In December 2023, Reuters reported that six US lawmakers wrote to the Federal Trade Commission (FTC) expressing their opposition to the proposed acquisition.
