Albertsons Companies(ACI) - 2024 Q4 - Annual Report

Store Operations and Market Position - Albertsons operates 2,269 stores across 34 states and the District of Columbia as of February 24, 2024[26] - The company operates 1,725 pharmacies, 1,336 in-store branded coffee shops, and 402 adjacent fuel centers[26] - Albertsons holds a 1 or 2 market share position in 70% of the 121 metropolitan statistical areas (MSAs) it operates in[26] - Albertsons Media Collective (AMC) leverages a strong market share, holding a 1 or 2 position in 70% of MSAs[37] Own Brands and Manufacturing - Own Brands sales reached $16.5 billion in fiscal 2023, offering over 14,000 unique items[30] - 10.1% of the company's Own Brands products were manufactured in company-owned facilities in fiscal 2023, with the remainder sourced from third parties[31] - The company operates 19 food production plants, including 7 milk plants, 3 soft drink bottling plants, and 3 bakery plants as of February 24, 2024[31] Distribution and Supply Chain - The company has 22 dedicated distribution centers and 19 manufacturing facilities[26] - 22 distribution centers are strategically located, with approximately 36% owned or ground-leased, collectively providing 63% of products to retail operating areas[33] Digital and Delivery Services - The company offers Drive Up & Go curbside pickup service in more than 2,200 locations and delivery services across more than 2,100 stores[26] - Albertsons partners with Instacart, DoorDash, and Uber for third-party delivery services[26] Financial Performance and Metrics - The company's EBITDA and Adjusted EBITDA are key non-GAAP financial measures used for performance evaluation[21] - The company defines Adjusted EBITDA as earnings before interest, taxes, depreciation, and amortization, adjusted for items not considered in core performance assessment[21] - Albertsons' fiscal years consist of 52 weeks, with fiscal 2023 ending on February 24, 2024, and fiscal 2024 ending on February 22, 2025[7] Loyalty Program and Customer Engagement - The loyalty program has 39.8 million members, driving higher sales and customer retention[36] - The company's loyalty program leverages data-driven analytics to provide personalized deals, digital coupons, and gas and grocery rewards[36] Sustainability and Environmental Initiatives - In fiscal 2023, the company recycled over 865 million pounds of cardboard and 25 million pounds of plastic bags and film, completing over 500 energy efficiency projects[40] Workforce and Employee Engagement - The company serves 35.3 million customers weekly and employs approximately 285,000 associates, with 62% being part-time and 200,000 covered by collective bargaining agreements[41] - Over 61,000 associates celebrated at least 15 years of service, and more than 44,000 celebrated over 20 years of service in fiscal 2023[41] - The company's DEI&B initiatives include 7,000 members across associate resource groups (ARGs), with the addition of the Women of Color (WOC) Alliance in fiscal 2023[43] Leadership and Executive Team - Evan Rainwater has served as Executive Vice President, Supply Chain, Manufacturing and Strategic Sourcing since March 2020 and Senior Vice President, Supply Manufacturing since May 2019[60] - Jennifer Saenz has served as Executive Vice President, Pharmacy & eCommerce since April 2024 and Chief Merchandising Officer since July 2021[60] - Jennifer Saenz previously served as Global Chief Marketing Officer for PepsiCo from October 2019 to July 2021[60] - Michael Theilmann has served as Executive Vice President and Chief Human Resources Officer since August 2019[61] - Michael Theilmann previously served as Global Practice Managing Partner, Human Resources at Heidrick & Struggles International Incorporated from February 2018 to August 2019[63] Risks and Challenges - Albertsons faces risks related to the Merger, including potential delays or failure to complete the transaction[12] - Albertsons faces risks related to the Merger, including potential delays or failure to complete the transaction and restrictions on business activities while the Merger Agreement is in effect[12] - The company operates in a highly competitive environment with intense competition from supercenters, online retailers, and other food and drug retailers[51] Supplier and Sourcing Strategy - The company is not dependent on any single supplier, with only one third-party supplier representing more than 5% of sales in fiscal 2023[29]