US-based retailer Albertsons Companies, Inc. has reported better-than-expected results in the third quarter of its 2021/22 financial year.
Net sales and other revenue for Albertsons Companies, Inc was $16.7 billion during the 12 weeks ended December 4, 2021 compared to $15.4 billion during the 12 weeks ended December 5, 2020.
Like-For-Like Sales Increase
The firm reported a 5.2% increase in like-for-like sales, as well as higher fuel sales and sales related to stores acquired and opened since the third quarter of fiscal 2020.
Retail price inflation and incremental sales related to administering COVID-19 vaccines contributed to the 5.2% like-for-like sales increase.
Gross margin rate decreased to 28.9% during the third quarter of fiscal 2021 compared to 29.3% during the third quarter of fiscal 2020.
Excluding the impact of fuel, gross margin rate increased 10 basis points compared to the third quarter of fiscal 2020.
Selling and administrative expenses decreased to 25.4% of net sales and other revenue during the third quarter of fiscal 2021 compared to 28.0% during the third quarter of fiscal 2020.
The decrease in selling and administrative expenses was primarily attributable to lower COVID-19 related expenses and the execution of productivity initiatives, which were offset by higher employee costs, depreciation, and other expenses related to the company's investments in its digital and omnichannel capabilities and other strategic priorities, the retailer said.
Adjusted EBITDA was $1,051.2 million, or 6.3% of sales, during the third quarter of fiscal 2021 compared to $967.7 million, or 6.3% of sales, during the third quarter of fiscal 2020.
The food and drug retailer in the United States operates 2,278 retail food and drug stores with 1,722 pharmacies, 399 associated fuel centres, 22 dedicated distribution centres, and 20 manufacturing facilities across 32 states and the District of Columbia.