Albertsons Shopping Cart Filling – GuruFocus.com
Albertsons Companies Inc. (AIT, Financial) overcame both a labor shortage and higher costs to beat sales and profit estimates in its fiscal 2021 fourth quarter. On Tuesday, the Boise, In. Idaho, released results for its fourth quarter and full fiscal year 2021, which ended February 26, 2022. It also provided an outlook for fiscal 2022.
Revenue was $17.4 billion for the quarter, compared to revenue of $15.8 billion in the year-ago quarter. The increase is due to the company’s 7.5% increase in identical sales and higher fuel sales, with retail price inflation contributing to the increase in identical sales.
Net income was $455.1 million or 79 cents per share on a GAAP basis, which included the gain of $78.7 million (14 cents per share), net of tax, related to the withdrawal from the combination plan . This amount was well above the net loss of $144.2 million, or 37 cents per share, in the fourth quarter of fiscal 2020, which included the charge of $449.4 million (97 cents per share). ), net of tax, linked to the withdrawal from the combined plan.
Adjusted net income was $436.8 million, or 75 cents per share on an adjusted basis, in the fourth quarter of fiscal 2021, compared to $347.2 million, or 60 cents per share , during the fourth quarter of Fiscal 2020. Adjusted EBITDA was $1.07 billion during the fourth quarter of Fiscal 2021 compared to $916.9 million during the fourth quarter of Fiscal 2020. financial year 2020.
Gross margins were largely unchanged (not including soaring fuel costs) thanks to productivity gains and improved margins from its pharmaceutical operations.
Shortly before noon Tuesday, shares were trading at $32.71, down 5.64% despite the good news.
It’s worth noting in the report that online sales in the quarter fell to just 5% of sales, reflecting Americans’ declining distrust of the pandemic and a return to brick-and-mortar retailers. At the start of the pandemic, online sales soared by 287%. The slowdown in online ordering is also affecting competitors like The Kroger Co. (KR, Financial), Weis Markets, Inc. (WMK, Financial), Walmart Inc. (WMT, Financial) and the private company Stop & Shop.
Albertsons operated 2,276 retail stores with 1,722 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities as of February 26, 2022. The company operates stores in 34 U.S. states and the District of Columbia. It has 24 brands, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market.
“We are pleased with our fourth quarter and full year 2021 results and the continued momentum we are seeing heading into 2022,” CEO Vivek Sankaran said in a statement. “Our strategy is working and we are executing well against industry-wide pressures. We want to recognize and thank all of our retail, distribution and manufacturing teams for their commitment and care to our customers and their communities. .”
Albertson’s fiscal 2022 outlook calls for nearly identical sales in fiscal 2022, up about 2% to 3%, with Adjusted Ebitda between $4.15 billion and $4.25 billion. dollars and adjusted earnings per share between $2.70 and $2.85. According to executives, an effective tax rate in the range of 23% to 24%, excluding discrete items, will also be forthcoming.
Management also expects capital expenditures in the range of $2.0 billion to $2.1 billion. They cautioned that they were unable to provide a full reconciliation of GAAP and non-GAAP measures used in the outlook for fiscal year 2022 “without unreasonable effort because it is not possible to predict some of the elements of adjustment with a reasonable degree of certainty”.