Albertsons names Susan Morris as next CEO

BOISE, Idaho - Albertsons Companies , Inc. (NYSE: NYSE:ACI), a prominent player in the Consumer Staples Distribution & Retail industry with a market capitalization of $11.96 billion, announced a transition in leadership as Susan Morris, currently Executive Vice President and Chief Operations Officer, is set to take over as CEO on May 1, 2025, succeeding Vivek Sankaran. The company confirmed Morris will also join the Albertsons Cos. Board of Directors upon Sankaran’s retirement. According to InvestingPro data, the company maintains a GOOD overall financial health score, suggesting a solid foundation for this leadership transition.

Jim Donald, Chair of the Albertsons Cos. Board of Directors, expressed confidence in Morris’s capabilities, citing her nearly four-decade tenure with the company and her comprehensive understanding of the business. Morris’s appointment comes after a rigorous search that included both internal and external candidates.

Morris, who has held various leadership roles within Albertsons, is poised to continue the company’s "Customers for Life" strategy, a plan she has been instrumental in developing alongside Sankaran and the leadership team. Her focus will be on accelerating growth and maintaining the company’s strong financial position.

Sankaran praised Morris for her leadership qualities and commitment to the company’s culture. He expressed full confidence in her ability to lead Albertsons into a new phase of growth and improve the company’s value proposition to customers and communities.

In addition to the leadership change, Albertsons reaffirmed its Fiscal 2024 Outlook, maintaining its projections for identical sales growth, adjusted EBITDA, adjusted net income per Class A common share, and capital expenditures. The company, which trades at an attractive P/E ratio of 11.46 and generated nearly $80 billion in revenue over the last twelve months, noted that it could not provide a full reconciliation of GAAP and Non-GAAP measures due to the unpredictability of certain adjustment items. InvestingPro analysis shows 14 analysts have revised their earnings downward for the upcoming period, with detailed insights available in the Pro Research Report.

Albertsons operates 2,273 retail food and drug stores across 34 states and the District of Columbia, with a commitment to making a meaningful difference in the communities it serves. The company, which maintains a healthy gross profit margin of 28.41%, alongside the Albertsons Companies Foundation, contributed more than $350 million in food and financial support in 2023. For comprehensive analysis and additional insights about Albertsons’ performance and outlook, investors can access the full company profile and detailed metrics through InvestingPro.

This leadership announcement and financial outlook are based on a press release statement from Albertsons Companies, Inc.

In other recent news, Albertsons Companies, Inc. announced the pricing of a $600 million private offering of 6.250% senior notes due in 2033. The proceeds, alongside available cash, will be used to redeem the existing $600 million 7.500% senior notes due in 2026. This financial strategy aims to manage the company’s debt more effectively. Additionally, Albertsons has decided to redeem these notes ahead of their maturity date, scheduled for March 17, 2025.

In corporate governance updates, Albertsons reported the resignation of Stephen Feinberg from its Board of Directors, with Frank Bruno, affiliated with Cerberus Capital Management, stepping in as a new board member. This appointment aligns with a Stockholders’ Agreement between Albertsons and Cerberus. In another development, Citi resumed its coverage of Albertsons with a Buy rating and set a price target of $26.00. This follows the cessation of a merger attempt with Kroger Co (NYSE:KR). and reflects optimism regarding Albertsons’ potential to enhance sales and profitability.

These updates come as Albertsons navigates the competitive landscape of the grocery retail sector.

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