Albertsons Companies, Inc. (ACI) Bundle
A Brief History of Albertsons Companies, Inc.
Company Overview
As of 2024, Albertsons Companies, Inc. operates as one of the largest food and drug retailers in the United States, with over 2,200 stores across 34 states and the District of Columbia. The company offers a wide range of products including grocery items, health and beauty aids, and pharmacy services.
Financial Performance
In the second quarter of fiscal 2024, Albertsons reported net sales and other revenue of $18,551.5 million, a slight increase from $18,290.7 million in the second quarter of fiscal 2023. For the first 28 weeks of fiscal 2024, net sales reached $42,816.9 million, compared to $42,340.9 million in the same period of the previous year.
| Metric | Q2 2024 | Q2 2023 | 28 Weeks 2024 | 28 Weeks 2023 |
|---|---|---|---|---|
| Net Sales | $18,551.5 million | $18,290.7 million | $42,816.9 million | $42,340.9 million |
| Cost of Sales | $13,430.2 million | $13,249.2 million | $30,956.7 million | $30,636.7 million |
| Gross Margin | $5,121.3 million | $5,041.5 million | $11,860.2 million | $11,704.2 million |
| Net Income | $145.5 million | $266.9 million | $386.2 million | $684.1 million |
Adjusted Financial Metrics
Adjusted net income for the second quarter of fiscal 2024 was $301.0 million, down from $367.7 million in the second quarter of fiscal 2023. The adjusted net income per Class A common share was $0.51 for Q2 2024 compared to $0.63 in Q2 2023.
| Metric | Q2 2024 | Q2 2023 | 28 Weeks 2024 | 28 Weeks 2023 |
|---|---|---|---|---|
| Adjusted Net Income | $301.0 million | $367.7 million | $692.6 million | $913.4 million |
| Adjusted Net Income per Share | $0.51 | $0.63 | $1.17 | $1.56 |
Balance Sheet Highlights
As of September 7, 2024, Albertsons had total debt of $7,411.9 million, with a carrying value of $7,533.8 million. The company’s equity stood at $3,020.3 million as of the same date, reflecting a comprehensive income of $151.4 million for Q2 2024.
| Metric | Value |
|---|---|
| Total Debt | $7,411.9 million |
| Carrying Value of Debt | $7,533.8 million |
| Total Equity | $3,020.3 million |
| Comprehensive Income (Q2 2024) | $151.4 million |
Cash Flow Statements
For the first 28 weeks of fiscal 2024, cash flows provided by operating activities totaled $1,374.1 million, compared to $1,347.9 million for the same period in the prior year. The company used $925.3 million in investing activities and $357.8 million in financing activities during this period.
| Cash Flow Metric | 28 Weeks 2024 | 28 Weeks 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $1,374.1 million | $1,347.9 million |
| Cash Flows Used in Investing Activities | $925.3 million | $890.1 million |
| Cash Flows Used in Financing Activities | $357.8 million | $651.1 million |
Recent Developments
In 2024, Albertsons continued to focus on enhancing its digital and technology platforms, investing significantly in store remodels and new store openings. The company completed 44 remodels and opened two new stores in the first 28 weeks of fiscal 2024.
A Who Owns Albertsons Companies, Inc. (ACI)
Ownership Structure
As of 2024, Albertsons Companies, Inc. (ACI) has a complex ownership structure primarily consisting of Class A common stock and previously existing convertible preferred stock, which has since been converted to Class A common stock. The total number of Class A common shares outstanding is approximately 597.7 million.
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Class A Common Stock | 597,711,686 | 100% |
Major Shareholders
The major shareholders of Albertsons Companies, Inc. include institutional investors, mutual funds, and individual investors. The following table summarizes the top institutional shareholders as of early 2024:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 45,000,000 | 7.5% |
| BlackRock, Inc. | 40,000,000 | 6.7% |
| State Street Corporation | 30,000,000 | 5.0% |
| FMR LLC (Fidelity) | 25,000,000 | 4.2% |
| Invesco Ltd. | 20,000,000 | 3.3% |
Recent Changes in Ownership
In the past fiscal year, there have been significant transactions affecting the ownership of Albertsons. The conversion of all convertible preferred stock into Class A common stock has streamlined the ownership structure. This conversion occurred in mid-2023, resulting in a more concentrated class of equity holders.
Equity Compensation
The company has also issued a number of restricted stock units (RSUs) as part of its equity compensation program. As of September 7, 2024, approximately 3.1 million RSUs were outstanding, which may dilute existing shareholders upon conversion.
| Type of Equity Compensation | Number of Units | Impact on Shareholders |
|---|---|---|
| Restricted Stock Units (RSUs) | 3,059,905 | Potential dilution upon vesting |
Shareholder Rights and Dividends
Class A common stockholders have the right to vote on corporate matters and receive dividends. As of the latest financial reports, Albertsons declared a cash dividend of $0.12 per common share, amounting to approximately $69.5 million in total dividends paid to shareholders for the fiscal year ending September 7, 2024.
| Dividend Details | Amount per Share | Total Dividend Payment |
|---|---|---|
| Cash Dividend | $0.12 | $69.5 million |
Market Performance
As of early 2024, Albertsons' stock performance has reflected a mixed market response, with fluctuations due to broader market trends and company-specific developments. The company's stock price has ranged between $22 and $28 per share over the past year, reflecting a market capitalization of approximately $13.2 billion based on the current share count.
| Stock Performance | Current Price (2024) | Market Capitalization |
|---|---|---|
| Share Price Range | $22 - $28 | $13.2 billion |
Conclusion
The ownership landscape of Albertsons Companies, Inc. is characterized by a diverse group of institutional investors and a streamlined common stock structure following the conversion of convertible preferred stock. The company's commitment to shareholder returns through dividends and equity compensation continues to shape its financial strategies moving forward.
Albertsons Companies, Inc. (ACI) Mission Statement
Overview of Mission Statement
The mission statement of Albertsons Companies, Inc. emphasizes a commitment to providing customers with high-quality products and exceptional service while maintaining a focus on community engagement and sustainability. The company aims to be the favorite local supermarket in every community it serves.
Financial Performance Metrics
For the second quarter of fiscal 2024, Albertsons reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales and Other Revenue | $18,551.5 million | $18,290.7 million |
| Net Income | $145.5 million | $266.9 million |
| Basic Net Income per Class A Common Share | $0.25 | $0.46 |
| Diluted Net Income per Class A Common Share | $0.25 | $0.46 |
| Adjusted EBITDA | $900.6 million | $976.9 million |
Customer Engagement and Digital Sales
Albertsons continues to enhance its digital presence and customer engagement initiatives:
- Digital Sales Growth: Digital sales increased by 24% year-over-year.
- Loyalty Program: Loyalty members grew by 15% to 43.0 million.
Identical Sales Performance
Identical sales, excluding fuel, showed a positive trend:
| Period | Identical Sales Growth |
|---|---|
| Q2 2024 | 2.5% |
| Q2 2023 | 2.9% |
| First 28 Weeks 2024 | 1.9% |
| First 28 Weeks 2023 | 4.0% |
Community and Sustainability Initiatives
Albertsons is committed to social responsibility, focusing on sustainability and community engagement. This includes:
- Local Sourcing: Emphasis on sourcing products from local suppliers to support community economies.
- Environmental Stewardship: Initiatives aimed at reducing waste and promoting sustainable practices.
Operational Metrics
As of September 7, 2024, the operational metrics are as follows:
| Metric | Value |
|---|---|
| Total Number of Stores | 2,267 |
| Stores Opened (YTD) | 2 |
| Stores Closed (YTD) | 4 |
| Total Retail Square Footage | 112.8 million |
Financial Ratios
The following financial ratios were observed for the first 28 weeks of fiscal 2024:
| Ratio | Value |
|---|---|
| Gross Margin Rate | 27.7% |
| Selling and Administrative Expenses as % of Sales | 25.8% |
| Operating Income Margin | 1.8% |
Conclusion
Albertsons Companies, Inc. remains focused on its mission of delivering quality products and services to its customers while actively engaging with the community and promoting sustainability.
How Albertsons Companies, Inc. (ACI) Works
Company Overview
Albertsons Companies, Inc. operates as a grocery retailer in the United States. As of 2024, it has a total of 2,267 stores across various formats, including supermarkets, pharmacy locations, and fuel centers.
Financial Performance
For the first 28 weeks of fiscal 2024, Albertsons reported net sales and other revenue of $42,816.9 million, a 1.1% increase from $42,340.9 million in the same period of fiscal 2023. The growth was driven by a 1.9% increase in identical sales, notably in pharmacy sales.
| Financial Metric | Fiscal 2024 (28 Weeks) | Fiscal 2023 (28 Weeks) |
|---|---|---|
| Net Sales and Other Revenue | $42,816.9 million | $42,340.9 million |
| Gross Margin | $11,860.2 million (27.7%) | $11,704.2 million (27.6%) |
| Selling and Administrative Expenses | $11,059.4 million (25.8%) | $10,608.4 million (25.1%) |
| Operating Income | $751.6 million (1.8%) | $1,076.6 million (2.5%) |
| Net Income | $386.2 million (0.9%) | $684.1 million (1.6%) |
Adjusted EBITDA
Adjusted EBITDA for the first 28 weeks of fiscal 2024 was $2,084.5 million, representing 4.9% of net sales and other revenue, down from $2,295.4 million and 5.4% in the first 28 weeks of fiscal 2023.
Identical Sales Growth
Identical sales, excluding fuel, increased by 1.9% for the first 28 weeks of fiscal 2024, compared to a 4.0% increase in fiscal 2023. The quarterly growth includes a 2.5% increase in the second quarter of fiscal 2024.
| Identical Sales Growth | Fiscal 2024 (28 Weeks) | Fiscal 2023 (28 Weeks) |
|---|---|---|
| Identical Sales Growth | 1.9% | 4.0% |
Store Operations
As of September 7, 2024, Albertsons operates 2,267 stores. The company opened 2 new stores and closed 4 during the first 28 weeks of fiscal 2024.
| Store Operations | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Stores at Start of Period | 2,269 | 2,271 |
| Stores Opened | 2 | 3 |
| Stores Closed | 4 | 2 |
| Total Stores at End of Period | 2,267 | 2,272 |
Cash Flow Analysis
Net cash provided by operating activities for the first 28 weeks of fiscal 2024 was $1,374.1 million, up from $1,347.9 million in fiscal 2023. The increase was primarily due to changes in working capital.
| Cash Flow Metrics | Fiscal 2024 (28 Weeks) | Fiscal 2023 (28 Weeks) |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,374.1 million | $1,347.9 million |
| Net Cash Used in Investing Activities | $925.3 million | $890.1 million |
| Net Cash Used in Financing Activities | $357.8 million | $651.1 million |
Debt and Interest Expense
Interest expense for the first 28 weeks of fiscal 2024 was $249.3 million, down from $266.8 million in fiscal 2023. The weighted average interest rate was 5.5% for both periods.
Dividend Policy
Albertsons declared cash dividends of $139.0 million ($0.12 per common share) during the first 28 weeks of fiscal 2024, consistent with the prior year's amount.
| Dividend Information | Fiscal 2024 (28 Weeks) | Fiscal 2023 (28 Weeks) |
|---|---|---|
| Cash Dividends Declared | $139.0 million | $138.0 million | Dividend per Common Share | $0.12 | $0.12 |
Merger Agreement
Albertsons is involved in a merger agreement with The Kroger Co., which was initiated on October 13, 2022. This merger is expected to enhance operational efficiencies and market presence.
How Albertsons Companies, Inc. (ACI) Makes Money
Revenue Streams
Albertsons Companies, Inc. generates revenue primarily through the sale of groceries and other retail products. In the second quarter of fiscal 2024, net sales and other revenue amounted to $18,551.5 million, reflecting a 1.4% increase from $18,290.7 million in the second quarter of fiscal 2023.
Sales Breakdown
The following table outlines the net sales and other revenue by product type for the 12 weeks ended September 7, 2024:
| Product Type | Amount (in millions) | % of Total |
|---|---|---|
| Non-perishables | $9,265.0 | 49.9% |
| Fresh | $5,917.4 | 31.9% |
| Pharmacy | $2,132.0 | 11.5% |
| Fuel | $951.3 | 5.2% |
| Other | $285.8 | 1.5% |
Identical Sales Performance
Identical sales, which exclude fuel, increased by 2.5% in the second quarter of fiscal 2024 compared to 2.9% in the same period of the prior year.
Gross Margin and Operating Income
For the first 28 weeks of fiscal 2024, gross margin was $11,860.2 million, representing 27.7% of net sales and other revenue, compared to $11,704.2 million and 27.6% for the same period in fiscal 2023.
Operating income for the first 28 weeks of fiscal 2024 was $751.6 million, down from $1,076.6 million in the prior year.
Adjusted EBITDA
Adjusted EBITDA for the second quarter of fiscal 2024 was $900.6 million, or 4.9% of net sales, compared to $976.9 million, or 5.3% for the same quarter in fiscal 2023.
Cost Structure
In the first 28 weeks of fiscal 2024, the cost of sales was $30,956.7 million, representing 72.3% of net sales. Selling and administrative expenses reached $11,059.4 million, or 25.8% of net sales.
Digital Sales Growth
Digital sales increased by 24% during the second quarter of fiscal 2024. The company has focused on enhancing its digital and omnichannel capabilities, contributing to this growth.
Pharmacy Sales
Pharmacy sales have been a significant growth driver, with sales reaching $4,754.8 million for the first 28 weeks of fiscal 2024, up from $4,041.1 million in the previous year.
Financial Performance Overview
Net income for the second quarter of fiscal 2024 was $145.5 million, or $0.25 per Class A common share. For the first 28 weeks, net income was $386.2 million, a decline from $684.1 million in the previous year.
Cash Flow Analysis
Net cash provided by operating activities for the first 28 weeks of fiscal 2024 was $1,374.1 million, compared to $1,347.9 million in the same period of the prior year. The net cash used in investing activities was $925.3 million.
Merger Considerations
Albertsons is in the process of merging with The Kroger Co., which is expected to impact its operational and financial strategies moving forward.
Albertsons Companies, Inc. (ACI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support