Albertsons Companies Inc (NYSE:ACI) stock fell 0.38% (As on April 12, 11:11:59 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Gross margin rate decreased to 27.8% during the fourth quarter of fiscal 2022 compared to 28.7% during the fourth quarter of fiscal 2021. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 71 basis points compared to the fourth quarter of fiscal 2021. The pharmacy business drove approximately half of the rate decrease with the remaining decrease being the result of increases in product, shrink, supply chain and advertising costs, as well as increases in picking and delivery costs related to the continued growth in digital sales, partially offset by the benefits of ongoing productivity initiatives. The decrease related to the pharmacy business was primarily due to fewer COVID-19 vaccinations in the fourth quarter of fiscal 2022. We administered 0.4 million COVID-19 vaccinations during the fourth quarter of fiscal 2022, compared to 2.3 million during the fourth quarter of fiscal 2021. Net gain on property dispositions and impairment losses was $61.4 million during the fourth quarter of fiscal 2022 compared to $1.7 million during the fourth quarter of fiscal 2021.

ACI in the fourth quarter of FY 22 has reported the adjusted earnings per share of 79 cents, beating the analysts’ estimates for the adjusted earnings per share of 67 cents. The company had reported the adjusted revenue growth of 5.1 percent to $18.27 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $18.22 billion. The increase was driven by the Company’s 5.6% increase in identical sales, with retail price inflation, growth in pharmacy and increasing digital penetration contributing to the identical sales increase. Adjusted net income was $459.7 million, during the fourth quarter of fiscal 2022 compared to $436.8 million, during the fourth quarter of fiscal 2021.

Adjusted EBITDA was $1,050.2 million during the fourth quarter of fiscal 2022 compared to $1,073.7 million during the fourth quarter of fiscal 2021. The decrease in Adjusted EBITDA was driven by fewer COVID-19 vaccines in the fourth quarter of fiscal 2022. This trend of declining COVID-19 vaccinations is expected to continue into fiscal 2023, in addition to lower COVID-19 at-home test kit revenue, and as a result the company expects an approximate $200 million headwind to the Adjusted EBITDA in fiscal 2023 compared to fiscal 2022.