Albertsons Companies, Inc. Reports First Quarter Fiscal 2025 Results (Form 8-K)

Albertsons Companies, Inc. Reports First Quarter Fiscal 2025 Results

Boise, ID - July 15, 2025

Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today reported results for the first quarter of fiscal 2025, which ended June 14, 2025.

First Quarter of Fiscal 2025 Highlights

•Identical sales increased 2.8%

•Digital sales increased 25%

•Loyalty members increased 14% to 47.3 million

•Net income of $236 million, or $0.41 per share

•Adjusted net income of $319 million, or $0.55 per share

•Adjusted EBITDA of $1,111 million

"In the first quarter, we delivered solid operating and financial performance, while investing in our core operations and improving our customer value proposition," said Susan Morris, Chief Executive Officer. "Ongoing investments in our strategic priorities drove increased engagement across our digital platforms, evidenced by strong growth in our digital sales, pharmacy operations, and membership in our loyalty program. To fuel these investments, we leveraged our productivity engine to drive efficiencies throughout our operations."

Morris added, "As we look forward to the balance of fiscal 2025, we do so with continued confidence in our Customers for Life strategy. We want to thank our teams for delivering these results and for their ongoing commitment to serving our customers and supporting the communities in which we operate."

First Quarter of Fiscal 2025 Results

Net sales and other revenue increased 2.5% to $24,880.8 million for the 16 weeks ended June 14, 2025 ("first quarter of fiscal 2025") from $24,265.4 million during the 16 weeks ended June 15, 2024 ("first quarter of fiscal 2024"). This increase was driven by a 2.8% increase in identical sales, with strong growth in pharmacy sales being the primary driver of the identical sales increase. We also continued to grow our digital sales with a 25% increase during the first quarter of fiscal 2025. These increases in Net sales and other revenue were partially offset by lower fuel sales.

Gross margin rate decreased to 27.1% during the first quarter of fiscal 2025 compared to 27.8% during the first quarter of fiscal 2024. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 85 basis points compared to the first quarter of fiscal 2024. This decrease in gross margin rate was primarily driven by incremental investments in our customer value proposition, strong growth in pharmacy sales, which carries an overall lower gross margin rate, and increases in delivery and handling costs related to the continued growth in our digital sales, partially offset by the benefits from our productivity initiatives, which included reductions in shrink expense.

Selling and administrative expenses decreased to 25.4% of Net sales and other revenue during the first quarter of fiscal 2025 compared to 25.9% during the first quarter of fiscal 2024. Excluding the impact of fuel, Selling and administrative expenses as a percentage of Net sales and other revenue decreased 63 basis points. This decrease in

Selling and administrative expenses as a percentage of Net sales and other revenue was primarily attributable to lower merger-related costs, the leveraging of employee costs and operating expenses related to the continued development of our digital platforms and modernization of our technology, partially offset by increases in legal, professional and outside services as well as business transformation costs. The benefits from our productivity initiatives continue to help offset increasing wage rates and other inflationary pressures on our operating expenses.

Net gain on property dispositions and impairment losses was $31.9 million during the first quarter of fiscal 2025 compared to net loss of $5.3 million during the first quarter of fiscal 2024.

Interest expense, net was $141.8 million during the first quarter of fiscal 2025 compared to $145.7 million during the first quarter of fiscal 2024. This decrease in interest expense, net was primarily attributable to lower average outstanding borrowings.

Other income, net was $3.9 million during the first quarter of fiscal 2025 compared to other expense, net of $4.0 million during the first quarter of fiscal 2024.

Income tax expense was $75.0 million during the first quarter of fiscal 2025, representing a 24.1% effective tax rate, compared to $69.2 million during the first quarter of fiscal 2024, representing a 22.3% effective tax rate. This increase in the effective rate was primarily driven by the reduction of a reserve for an uncertain tax position due to the expiration of a state statute in the first quarter of fiscal 2024.

Net income was $236.4 million, or $0.41 per share, during the first quarter of fiscal 2025, compared to $240.7 million, or $0.41 per share, during the first quarter of fiscal 2024.

Adjusted net income was $318.9 million, or $0.55 per share, during the first quarter of fiscal 2025, compared to $391.6 million, or $0.66 per share, during the first quarter of fiscal 2024.

Adjusted EBITDA was $1,111.0 million, or 4.5% of Net sales and other revenue, during the first quarter of fiscal 2025 compared to $1,183.9 million, or 4.9% of Net sales and other revenue, during the first quarter of fiscal 2024.

Capital Allocation and Common Stock Repurchase Program

During the first quarter of fiscal 2025, capital expenditures were $584.6 million, which primarily included the completion of 36 remodels, the opening of three new stores and continued investment in our digital and technology platforms. During the first quarter of fiscal 2025, the Company paid its quarterly dividend of $0.15 per share on May 9, 2025 to stockholders of record as of April 25, 2025. On July 15, 2025, the Company announced the next quarterly dividend payment of $0.15 per share to be paid on August 8, 2025 to stockholders of record as of the close of business on July 25, 2025.

During the first quarter of fiscal 2025, the Company repurchased 14.2 million shares of common stock for a total of $314.8 million pursuant to the existing multi-year $2.0 billion repurchase authorization.

On March 11, 2025, the Company completed the issuance of $600.0 million in aggregate principal amount of 6.250% senior unsecured notes due March 15, 2033 (the "2033 Notes"). On March 17, 2025, proceeds from the 2033 Notes were used to redeem in full the $600.0 million outstanding of 7.500% senior unsecured notes due March 15, 2026.

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Fiscal 2025 Outlook

The Company is providing an updated fiscal 2025 outlook and expects its financial results to be as follows:

•Identical sales growth in the range of 2.0% to 2.75% (previously 1.5% to 2.5%)

•Adjusted EBITDA in the range of $3.8 billion to $3.9 billion, including approximately $65 million related to the Company's 53rd week (unchanged)

•Adjusted net income per Class A common share in the range of $2.03 to $2.16 per share (unchanged)

•Effective income tax rate in the range of 23.5% to 24.5% (unchanged)

•Capital expenditures in the range of $1.7 billion to $1.9 billion (unchanged)

The Company is unable to provide a full reconciliation of the GAAP and Non-GAAP Measures (as defined below) used in the updated fiscal 2025 outlook without unreasonable effort because it is not possible to predict certain of the adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2025. The expected effective tax rate does not reflect potential future rate adjustments for the resolution of tax audits or potential changes in tax laws, which cannot be predicted with reasonable certainty.

Conference Call

The Company will hold a conference call today at 8:30 a.m. Eastern Time, which will be hosted by Susan Morris, CEO, and Sharon McCollam, President & CFO. The call will be webcast and can be accessed at https://albertsonscompanies.com/investors/events-and-presentations. A replay of the webcast will be available for at least two weeks following the completion of the call.

About Albertsons Companies

Albertsons Companies is a leading food and drug retailer in the United States. As of June 14, 2025, the Company operated 2,264 retail stores with 1,725 in-store pharmacies, 408 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Company operates stores across 35 states and the District of Columbia under 22 well known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2024, along with the Albertsons Companies Foundation, the Company contributed more than $435 million in food and financial support, including more than $40 million through our Nourishing Neighbors Program to ensure those living in our communities and those impacted by disasters have enough to eat.

Albertsons, Safeway, Vons, Jewel-Osco, Tom Thumb, Randalls, United Supermarkets, Pavilions, Haggen and Balducci's Food Lovers Market are registered trademarks of Albertsons Companies Inc. or its subsidiaries. ACME, Carrs, Kings Food Markets, Shaw's, and Star Market are trademarks of Albertsons Companies Inc. or its subsidiaries. Albertsons associated logos, product names and services are trademarks of Albertsons Companies, Inc. All other trademarks are the property of their respective owners.