Investing.com -- Albertsons Companies reported better-than-expected second-quarter earnings and revenue on Tuesday, as the grocery chain saw growth in digital sales and pharmacy operations. The company's shares edged 0.9% higher following the announcement.
For the second quarter ended September 7, 2024, Albertsons (NYSE:ACI) posted adjusted earnings per share of $0.51, surpassing the analyst estimate of $0.48. Revenue came in at $18.6 billion, beating the consensus forecast of $18.47 billion and representing a 1.6% increase from $18.3 billion in the same quarter last year.
The company reported identical sales growth of 2.5% YoY, driven primarily by strong pharmacy sales. Digital sales surged 24% compared to the previous year, reflecting the ongoing expansion of Albertsons' omnichannel capabilities.
"In the second quarter of fiscal 2024, investments in our Customers for Life strategy continued to drive strong growth in our digital sales and pharmacy operations," said CEO Vivek Sankaran. He added, "We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers, and accelerated growth in our Albertsons Media Collective."
Despite the positive results, Albertsons faces challenges ahead. The company expects continuing headwinds related to investments in associate wages and benefits, an increasing mix of lower-margin pharmacy and digital businesses, and an increasingly competitive backdrop for the remainder of fiscal 2024.
Adjusted EBITDA for the quarter was $900.6 million, or 4.9% of net sales and other revenue, compared to $976.9 million, or 5.3% of net sales and other revenue, in the same period last year.
Albertsons completed 44 store remodels and opened two new stores during the first 28 weeks of fiscal 2024, with capital expenditures totaling $952.3 million.