Albertsons’ Profits Soar As Grocer Looks to Go Public This Year

(Bloomberg) -- Albertsons Companies Inc.’s profits almost tripled in its most recent fiscal year as the supermarket chain prepares to go public, according to a regulatory filing Tuesday.

The Boise, Idaho-based company earned $466 million in the 53 weeks ending Feb. 29 -- a 256% increase over the same period last year, it said in an amended filing with the U.S. Securities and Exchange Commission. Its revenue rose 3.2% to $62.5 billion.

Albertsons, which filed for an initial public offering in March, is committed to go public this year, according to people familiar with the matter, even as the coronavirus pandemic upends the equity markets and broader economy. It’s also moving ahead despite some investor concerns that the company has too much debt, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and Albertsons’ plans could change, they said.

The company’s total debt was $8.7 billion as of Feb. 29, down from $10.6 billion a year earlier, according to the filing.

Grocery chains are among the few segments of the economy to benefit from the lockdowns throughout the U.S. that began in March. Albertsons’ sales in March and April rose 34% year-over-year, according to the filing. It has also hired 55,000 people since March.

“The coronavirus (Covid-19) pandemic has significantly increased demand for food-at-home, particularly through our e-commerce offerings,” it said.

Albertsons is owned by private equity firm Cerberus Capital Management, which first invested in the company in 2006 and has been seeking an exit for years.

Representatives for Cerberus and Albertsons didn’t immediately respond to a requests for comment.

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