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Albertsons Companies Inc. Class A (ACI-1.37%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports net sales and other revenue of $18,774.5 million for the third quarter of fiscal 2024, a 1.2% increase from the previous year's third quarter. This growth was primarily driven by a 2.0% increase in identical sales, excluding fuel, with a significant contribution from pharmacy sales.
Gross margin for the quarter was 27.9%, slightly down from 28.0% in the same period last year. The decrease in gross margin was attributed to the growth in pharmacy sales and increased costs related to digital sales, partially offset by productivity initiatives.
Selling and administrative expenses rose to 25.1% of net sales, up from 24.8% in the prior year. This increase was due to merger-related costs and higher occupancy expenses, despite some offset from productivity gains.
Net income for the quarter was $400.6 million, or $0.69 per Class A common share, compared to $361.4 million, or $0.62 per share, in the previous year. The increase was partly due to an $81.0 million tax benefit from state income tax settlements.
Adjusted net income was reported at $420.3 million, or $0.71 per Class A common share, down from $462.3 million, or $0.79 per share, in the prior year.
The report also discusses the termination of the merger agreement with The Kroger Co., following a preliminary injunction by the United States District Court. Albertsons has filed a lawsuit against Kroger for alleged breach of the merger agreement.
Cash provided by operating activities was $1,922.1 million for the first 40 weeks of fiscal 2024, compared to $1,730.8 million in the previous year, driven by changes in working capital and lower tax payments.
Capital expenditures for the period were $1,447 million, used primarily for store remodels, new store openings, and investments in digital and technology platforms.
The company announced an increase in its quarterly dividend from $0.12 to $0.15 per share and authorized a new $2.0 billion share repurchase program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Albertsons Companies Inc. Class A quarterly 10-Q report dated January 8, 2025. To report an error, please email earnings@qz.com.