Albertsons Reports Second Quarter Results
BOISE, ID - Yesterday, Albertsons Companies reported results for the second quarter of fiscal 2019, which ended September 7. With multiple strategic investments made in the business, Albertsons is leveraging its programs to promote growth.
The results showed another consecutive quarter (the seventh, to be exact) of identical sales growth at 2.4 percent. This is accounted for by the company’s continuous momentum. Additionally, net income rose to $294.8 million as opposed to the net loss of $32.4 million the previous year.
"The strong momentum in the business continued in the second quarter," said Vivek Sankaran, President and Chief Executive Officer. "Our identical sales were positive for the seventh consecutive quarter and represented our strongest identical sales performance in over three years as we continue to elevate the shopping experience for our customers. We are focused on driving sales growth by running the best stores, growing our loyal customer base, winning in e-commerce, and enhancing our Own Brands portfolio. At the same time, we are making strategic investments in the business to better leverage our scale, which is improving productivity and driving cost reductions."
Furthermore, adjusted EBITDA rose to $567.6 million, a 3.5 percent increase compared to 2018. As mentioned above, the enhanced Own Brands portfolio has also driven growth, as the report mentioned its sales penetration of 25.3 percent. Perhaps the most progressive program that paid off for Albertsons was its Online home delivery and Drive Up and Go services, which turned up sales growth by 40 percent.
According to a report, a handful of strategic technological investments led to the company’s net debt decrease to 2.9x. How will the retail powerhouse keep up its momentum? AndNowUKnow will continue to report.