Albertsons Companies reported strong results in Q1 of fiscal 2022, highlighted by a 6.8% increase in identical sales and a 28% increase in digital sales compared to the first quarter of fiscal 2021.
First covered by Store Brands’ sister publication Progressive Grocer, net income for Q1 was $484 million and adjusted net income was $582 million. Net sales and other revenue was $23.3 billion for the reporting period, up from $21.3 billion during the 16 weeks ended June 19, 2021.
The company’s 6.8% increase in identical sales and overall higher fuel sales helped account for the increase. Adjusted EBITDA for the quarter was $1,420 million, equivalent to 6.1% of net sales and other revenue.
“In the first quarter, our teams continued to deliver strong operating and financial performance across all key metrics, and we continued to gain market share," said Vivek Sankaran, Albertsons CEO. "As we look forward to the balance of the year, while we are thoughtful about the macro environment and the possible implications on consumer behavior, our teams have consistently demonstrated their ability to adapt to a changing backdrop in real time.”
Selling and administrative expenses represented 25.2% of net sales and other revenue, compared to 25.9% in the first quarter last year. This decrease was attributable to lower pandemic-related expenses and the execution of productivity initiatives. An increase in employee costs was the result of wage increases and higher equity-based compensation expenses.
The company’s fiscal results have prompted it to raise its 2022 outlook, including identical sales of approximately 3% to 4%, up from 2% to 3%, and adjusted EBITDA in the range of $4.25 billion to $4.35 billion, previously $4.15 billion to $4.25 billion.
“This puts us in a strong position to continue to execute against our Customers for Life strategy, including more deeply engaging our customers both digitally and in-store and delivering against our productivity agenda,” Sankaran continued. “We are so proud of the resilience, agility and passion of our teams and their ongoing service to our customers and communities."