Albertsons Companies Inc - Class A
Q4 2024 Earnings
Adjusted net income excludes $52.4M business transformation costs, $34.0M merger-related costs, $36.4M property disposition and impairment losses, $18.3M equity-based compensation, $5.7M LIFO expense, $11.0M amortization of intangible assets from acquisitions, $4.1M legal and regulatory accruals, and $(36.3)M miscellaneous adjustments
Did ACI Beat Earnings? Q4 2024 Results
Albertsons closed out its fiscal fourth quarter with a modest but clean beat, as the grocer posted adjusted EPS of $0.46, topping the $0.41 consensus estimate by 11.06%, while revenue of $18.80 billion edged just ahead of the $18.79 billion Wall Street expected. The primary engine behind the quarter was a 24% surge in digital sales paired with 2.3% identical sales growth, though a pronounced mix shift toward lower-margin pharmacy products compressed gross margin by 60 basis points to 27.4%, weighing on profitability and contributing to Adjusted EBITDA declining to $855.10 million from $915.80 million a year ago. Loyalty membership climbed 15% to 45.6 million members, reinforcing the company's "Customers for Life" strategy even as outgoing CEO Vivek Sankaran prepares to hand leadership to COO Susan Morris in May. Morris has characterized fiscal 2025 as an investment year, with the company guiding adjusted EPS of $2.03 to $2.16 and Adjusted EBITDA of $3.80 billion to $3.90 billion, while projecting that stronger EBITDA growth relative to identical sales will not materialize until fiscal 2026.
- Identical sales increased 2.3% in Q4, driven primarily by strong pharmacy sales growth
- Digital sales increased 24% in Q4
- Loyalty members increased 15% to 45.6 million
- Productivity initiatives including reductions in shrink expense helped fund customer value proposition investments
- Lower average outstanding borrowings reduced interest expense
“We delivered solid results in the fourth quarter and closed fiscal 2024 with positive momentum as we continued to invest in our Customers for Life strategy. This strategy has firmly positioned the Company for its next chapter of growth and value creation for shareholders. As previously announced, I am retiring as of May 1, 2025, and am delighted that the Board of Directors has selected Susan Morris to succeed me as CEO. Under Susan's leadership, I have the utmost confidence that she and the entire team will continue to drive future growth and continue to elevate our role with our customers and our communities.”
Albertsons CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025, Albertsons guided identical sales growth of 1.5% to 2.5%, Adjusted EBITDA in the range of $3.8 billion to $3.9 billion (including approximately $65 million from a 53rd week), adjusted net income per share of $2.03 to $2.16 (including approximately $0.03 from the 53rd week), an effective income tax rate of 23.5% to 24.5%, and capital expenditures of $1.7 billion to $1.9 billion. Management characterized fiscal 2025 as an 'investment year,' with growth consistent with a long-term algorithm of 2%+ identical sales and Adjusted EBITDA growth exceeding identical sales growth expected beginning in fiscal 2026.
ACI YoY Financials
Figures from SEC filings and company reports. Not investment advice.