Albertsons Companies Inc. (NYSE:ACI) reported better-than-expected first-quarter earnings and sales Tuesday morning, but shares remained relatively flat amid margin pressure and a dip in cash reserves.
The company registered quarterly adjusted earnings per share of 55 cents, beating the analyst consensus estimate of 53 cents.
Quarterly sales of $24.88 billion (+2.5% year over year) outpaced the street view of $24.716 billion.
Identical sales increased 2.8%, driven by strong growth in pharmacy sales, while digital sales surged 25%, reflecting robust consumer engagement online.
Loyalty program membership grew 14%, reaching 47.3 million members.
Gross margin rate decreased to 27.1% during the first quarter of fiscal 2025 compared to 27.8% during the first quarter of fiscal 2024. Excluding the impact of fuel and LIFO expense, the gross margin rate decreased 85 basis points compared to the first quarter of fiscal 2024.
Net gain on property dispositions and impairment losses was $31.9 million during the quarter, wider than the net loss of $5.3 million in the year-ago period.
Adjusted EBITDA declined to $1.11 billion in Q1 FY25 from $1.18 billion a year earlier. Adjusted EBITDA margin slipped to 4.5% from 4.9% year-over-year.
The company exited the quarter with cash and equivalents of $151 million, significantly lower than the $293.6 million reported on February 22, 2025.
Dividend: On July 15, the company announced the next quarterly dividend payment of $0.15 per share, payable on August 8, 2025, to stockholders of record as of the close of business on July 25, 2025.
Outlook: Albertsons reaffirmed its FY25 adjusted EPS outlook of $2.03–$2.16, in line with estimates. It raised its identical sales growth forecast to 2%–2.75% from the prior 1.5%–2.5% range.
“As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy,” said CEO Susan Morris.
In a separate presentation, the company stated that it will deliver $1.5 billion in savings over FY25-FY27.
Price Action: ACI shares are trading higher by 0.09% to $22.15 premarket at last check on Tuesday.
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