Albertsons Cos. Announces Strong Q2 Performance Following Kroger Deal Agreement

Following the announcement of the merger agreement with Kroger, Albertsons Companies has shared its Q2 2022 results from the period that ended Sept. 10, highlighted by increases in sales and net income.

"Our team continued to deliver strong performance during the second quarter," said Vivek Sankaran, CEO. "Throughout the quarter, we continued to invest in our digital transformation, our differentiation in Fresh, and the modernization of our capabilities. As we look ahead to the balance of the year, we believe we are well-positioned to further accelerate in each of these areas, as we continue to roll out our Customers for Life strategy. With ongoing productivity to support our investments and to cushion inflationary and consumer headwinds, we will continue to prioritize our investments in deepening our relationships with our customers and communities. Our teams' commitment to serving our customers is driving our performance while furthering our purpose to bring people together around the joys of food and to inspire well-being."

Net sales and other revenue was $17.9 billion in the quarter, compared to $16.5 billion in the year-over-year quarter. The increase was driven by the company's 7.4% increase in identical sales and higher fuel sales, with retail price inflation driving the identical sales increase. Selling and administrative expenses decreased to 25.0% of net sales and other revenue during the second quarter of fiscal 2022 compared to 25.6% in Q2 2021.

Identical sales increased 7.4%, and digital sales increased 36% in the second quarter. Net income was $342.7 million, or $0.59 per share, during the second quarter of fiscal 2022 compared to $295.2 million, or $0.52 per share, during Q2 2021.

As of Sept. 10, 2022, Albertsons Companies operated 2,272 retail food and drug stores with 1,722 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities.

Approved by the boards of directors of each company last week, Kroger will acquire all outstanding shares of Albertsons in a deal valued at approximately $24.6 billion, which includes the assumption of approximately $4.7 billion of Albertsons debt. The transaction is expected to close in early 2024, subject to the receipt of required regulatory clearance and other customary closing conditions, including receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.