Albertsons' Net Sales Grow in Q1

First quarter sales at Albertsons were up slightly as the grocer reported net income that was lower than the comparable quarter the previous year. 

For the quarter ended June 17, net sales and other revenue was $24.1 billion compared to $23.3 billion for the comparable quarter the previous year. Company officials said the increase was driven by a 4.9% increase in identical sales, with retail price inflation across most categories, growth in pharmacy and increasing digital penetration contributing to the identical sales increase. The increase in net sales and other revenue was partially offset by lower fuel sales.

Adjusted net income was $545.7 million, or $0.93 per share, during the first quarter of fiscal 2023 compared to $582 million, or $1.00 per share, during the first quarter of fiscal 2022. Adjusted EBITDA was $1.32 billion, or 5.5% of net sales and other revenue, during the first quarter of fiscal 2023 compared to $1.42 billion, or 6.1% of net sales and other revenue, during the first quarter of fiscal 2022. 

"Our first quarter results demonstrate the resilience of our business, and the effectiveness of our Customers for Life transformation strategy, even as the economic environment has become more challenging,” said Vivek Sankaran, Albertsons CEO. "As we look ahead to the balance of the year, we remain focused on driving operational excellence in our stores and continued growth in our digital and pharmacy operations. We will also continue to drive the initiatives supporting our Customers for Life strategy, including delivering on our customer promises, deepening our relationships with them, and serving them where, when and how they want to be served."

During the first quarter, Albertsons announced the launch of its Signature SELECT brand as it moves away from its Signature Farms, Signature Care, and Signature Cafe brands. Signature SELECT is one of the largest brands in the grocer’s Own Brand portfolio featuring more than 8,000 products that includes packaged salads, ice cream, frozen pizza, coffee, paper goods, pasta, snacks, canned vegetables and fruit as well as ground beef, pork and chicken.