On April 12th Albertsons Companies Inc. posted results for Q4 and FY2021 ending February 26th. Albertsons is the third largest retailer of groceries in the U.S. and is a pure supermarket-pharmacy play subject to the pressures of COVID and escalation in food, logistic and labor costs in common with national and regional competitors.
For the quarter, the company earned $455 million on revenue of $17,385 million with a diluted EPS of $0.79. For the corresponding Q4 of FY2020, Albertsons lost $(144) million on sales of $15,772 million with a diluted EPS of $(0.37). Revenue was 10.6 percent higher and gross margin increased by 9.3 percent.
For fiscal 2021, the Company posted net earnings of $1,620 million on revenue of $71,887 million with a diluted EPS of $2.70. For fiscal 2020, Albertsons posted net earnings of $850 million on revenue of $69,690 million with a diluted EPS of $1.47.
In commenting on FY 2021 results, Vivek Sankaran CEO, stated, "We are pleased with our fourth quarter and full-year 2021 results and the continuing momentum we are seeing as we enter 2022," He added "Our strategy is working, and we are executing well against industry-wide for their commitment to and care of our customers and their communities."
The report contained a note relating to ‘Strategic Alternatives’ aimed at enhancing the Company's growth and maximizing shareholder value. The Board review would include optimization of the balance sheet and ROI objectives with no specific timetable.
The Company release included FY 2022 Guidance:-
- Identical Sales growth without fuel of 2.0% to 3.0%
- Adjusted EPS of $2.70 to $2.80
- Capital expenditure of $2 billion
Comparable same-store sales for Q4 increased by 7.5 percent (excluding fuel) compared to Q4 FY 2020. During Q4 of FY 2021 digital sales increased by 287 percent as a two-year stack.
On February 26th Albertsons posted total assets of $28,123 million, up 5.7 percent from February 27th the end of FY2020. Long-term debt and lease obligations attained $13,834 million, 10.6 percent lower than at the end of the previous fiscal year.
At the end of FY2021, Albertsons operated approximately 2,276 stores with 1,772 pharmacies, under 24 banners in 34 states. Albertsons operates 20 food plants and 22 distribution centers.
The Albertsons Companies had an intraday market capitalization of $17,360 million on April 14th. The Company has traded over the past fifty-two weeks in a range of $17.72 to $37.99 with a 50-day moving average of $32.40. KR trades with a forward P/E of 12.5. On March 11th the share closed at $34.76 pre-release, but opened at $33.18 on April 12th.
Twelve-month trailing operating margin was 2.0 percent and profit margin 0.8 percent. The Company generated a return on assets of 3.4 percent and 10.5 percent on equity.