Albertsons Profits Improve in Q4, Jim Donald Comments
BOISE, ID - As we’ve reported previously, Jim Donald’s last day as Albertsons’ CEO is today, which coincides rather nicely with the retailer’s fourth quarter report results. As his sucessor, Vivek Sankaran, steps onto the scene, what state has Albertsons been left in? According to the Q4 results, it’s in a slightly better state than what Jim Donald inherited, thanks to growth in e-commerce and improving profitability.
“We are very pleased with the trends in our business as demonstrated by our strong results in the fourth quarter and full year,” stated Donald in a recent press release. “This performance in our core four-wall business is helping fund necessary investments into the business in both the four-wall and no-wall environments. We continue to deliver the balance sheet with a total net debt to Adjusted EBITDA ratio of 3.5x at the end of fiscal 2018, and have a clear path for further reduction.”
Highlights from the fourth quarter and full year reports include:
- Identical sales increased 1.1% during the fourth quarter and increased 1.0% for the full year
- Growth in GAAP pre-tax earnings in both the fourth quarter and full year
- Adjusted EBITDA of $727 million in the fourth quarter and $2,741 million during the full year representing over 14% growth in fiscal 2018
- eCommerce sales growth of 52% and 83% during the fourth quarter and full year, respectively
- Continued strong Own Brands sales penetration of 25.2% in the fourth quarter
- Total net debt to Adjusted EBITDA ratio reduced to 3.5x at the end of fiscal 2018
To read the entirety of Albertson’s financial report, please click here.
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