Albertsons Cos. Raised year-round guidance on what is seen as a positive background for consumers, despite rising supply chain costs in the second quarter.
Boise, Idaho-based supermarket company had net revenue and other revenue of $ 16.51 billion for the three months to September 11, up 4.7% year-over-year. That’s more than $ 15.86 billion expected by FactSet polled analysts.
The company said on Monday that sales increased, partly due to increased fuel sales.
Net income was $ 295.2 million, compared with $ 284.5 million in the previous year. Adjusted revenue was 64 cents per share, above Wall Street estimates.
Gross margin fell from 29% in the quarter to 28.6%. Excluding the impact of fuel, indicators have been flat since the same period last year, primarily due to higher product, supply chain and advertising costs.
Large food companies are raising prices to address rising costs and labor and transportation issues that are blocking the flow of staples to grocery store shelves. Their supply chain problems are exacerbated when consumers are spending heavily on food in supermarkets and restaurants. According to US Census Bureau data, consumer spending in grocery stores increased by 4% in August from the same month last year.
At the same time, the company raised its quarterly dividend to 12 cents, up 20% per share, taking into account performance and free cash flow generation. The company said it will pay a next quarterly dividend of 12 cents per share on November 12.
Vivek Sankaran, Chief Executive Officer, said:
The company expects adjusted earnings in 2021 to be $ 2.50 to $ 2.60 per share, but earlier forecasts are expected to be $ 2.20 to $ 2.30 per share.
Albertsons expects same sales, including stores operating in the same period both this year and the previous year, to fall 2.5% to 3.5%, compared to the previous guidance of 5% to 6%. Said that.
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Albertsons Increases Sales, Raises Guidance, Announces Dividends Despite Supply Chain Costs
Source link Albertsons Increases Sales, Raises Guidance, Announces Dividends Despite Supply Chain Costs