Profit, earnings keep growing at Publix

Second-quarter profit and earnings at Lakeland, Fla.-based Publix Super Markets Inc. soared despite an increasingly competitive grocery landscape.

The company reported sales of $9.3 billion, a 6.8% increase from $8.8 billion in 2018. Same-store sales for the three months ending on June 29 increased 4.8%. The company estimates the increase in sales was 1.2% higher due to the effect of the Easter holiday being in the second quarter in 2019 and in the first quarter in 2018.

Net earnings were $661.1 million, compared to $616.2 million in 2018, an increase of 7.3%. Earnings per share increased to $0.92 per share, up from $0.84 per share in 2018. Net earnings and earnings per share were impacted by net unrealized gains on equity securities. Excluding the impact of net unrealized gains on equity securities in 2019 and 2018, net earnings would have been $637 million, compared to $571 million in 2018, an increase of 11.6%. Earnings per share would have been $0.89 per share, compared to $0.78 per share in 2018.

“I’m pleased that our Publix associates delivered good operating results,” said Publix CEO Todd Jones. “We continue to provide premier service to help offset the challenges in the stock market.”

The company says it adopted a new accounting standard in the first quarter of 2019 that changed the accounting for operating leases. The new standard required the company to recognize $2.9 billion of operating lease rights and obligations as assets and liabilities on the balance sheet.

Publix offers more than 3,000 SKUs of private brand products. The company operates 1,215 stores in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia.