US-based grocery retailer Albertsons Companies generated $18.2bn in net sales and other revenue in the third quarter (Q3) of fiscal 2022 (FY22), up from $16.7bn in the same period of the prior fiscal year (FY21).
In the 12 weeks to 3 December, the retailer’s identical sales rose by 7.9% and its digital sales increased by 33%.
Albertsons saw its gross margin rate drop to 28.2% in Q3 2022 compared with 28.9% a year earlier.
This decline was primarily driven by increases in product, shrink and supply chain costs.
Albertsons’ net income also declined from $424.5m to $375.5m year-on-year, while its adjusted net income was $505.1m.
The retailer’s earnings for each diluted share were $0.20 in Q3 2023, compared with $0.74 a year earlier.
Albertsons reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.16bn for Q3, representing 6.4% of its net sales and other revenue.
Albertsons CEO Vivek Sankaran said: “Our team continues to deliver strong performance as we execute against our customers for Life strategy and bring people together around the joys of food and inspire well-being.
“Our investments in digital transformation, differentiation in Own Brands and Fresh offerings, and the modernisation of our operational capabilities contributed to these results.
“I want to thank all of our teams for their commitment to serving our customers and living our values every day.
“As we look ahead to the balance of the year and into fiscal 2023, we believe that all of these initiatives position us well to continue to drive top-line growth and deepen our customer and community engagement both online and in-store.”
In October last year, Albertsons reported $17.9bn in net sales and other revenue for the second quarter of FY22, up from $16.5bn a year earlier.
The results came shortly after grocery retailer Kroger agreed to buy Albertsons for around $24.6bn.