Albertsons Companies Inc (NYSE:ACI) stock fell 0.57% (As on October 16, 11:23:22 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. Gross margin rate was unchanged at 27.6% during both the second quarter of fiscal 2024 and the second quarter of fiscal 2023. Excluding the impact of fuel and LIFO expense, gross margin rate decreased 44 basis points compared to the second quarter of fiscal 2023. The strong growth in pharmacy sales, which carries an overall lower gross margin rate, and increases in picking and delivery costs related to the continued growth in the digital sales were the primary drivers of the decrease, partially offset by the benefits from our procurement and sourcing productivity initiatives. Net loss on property dispositions and impairment losses was $43.9 million during the second quarter of fiscal 2024 compared to net gain of $8.4 million during the second quarter of fiscal 2023. The net loss on impairment during the second quarter of fiscal 2024 was primarily due to impairment losses of $39.8 million primarily related to equipment from the closing of our micro-fulfillment centers and $13.5 million of retail store impairment losses, partially offset by $9.4 million of gains from the sale of real estate assets. Adjusted net income was $301.0 million during the second quarter of fiscal 2024, compared to $367.7 million, during the second quarter of fiscal 2023. Adjusted EBITDA was $900.6 million, or 4.9% of Net sales and other revenue, during the second quarter of fiscal 2024 compared to $976.9 million, or 5.3% of Net sales and other revenue, during the second quarter of fiscal 2023.

ACI in the second quarter of FY 24 has reported the adjusted earnings per share of 51 cents, beating the analysts’ estimates for the adjusted earnings per share of 48 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 1.4 percent to $18.55 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $18.45 billion. The increase was driven by our 2.5% increase in identical sales, with strong growth in pharmacy sales driving the identical sales increase. The company also continued to grow the digital sales with a 24% increase during the second quarter of fiscal 2024. The increase in Net sales and other revenue was partially offset by lower fuel sales.