US grocery retailer Supervalu is performing strongly after its US$ 11.3 billion acquisition of rival Albertson’s premier retail properties, which transformed Supervalu into the country’s third-largest supermarket chain.
Supervalu reported record net sales of US $10.7 billion for the second quarter of fiscal 2007. This compared with sales of US $4.6 billion in the same period last year. It also recorded net earnings of US $132 million compared to US $33.8 million last year, and record diluted earnings per share of US $0.61 compared to US $0.24 last year.
Supervalu’s second quarter results include 12 weeks of results ended September 9, 2006 and 13 weeks of acquired operations, ended August 31, 2006.
Jeff Noddle, Supervalu’s chairman and chief executive officer said: “This quarter represents the first quarter of combined results since the June acquisition of Albertson’s premier retail properties. We produced doubledigit earnings per share growth by significantly increasing our after-tax earnings, demonstrating the accretive acquisition and the powerful improvement in our business model.
“The sizable transformation of Supervalu, where retail now accounts for the vast majority of total operating earnings, is apparent in these results. As a coast-to-coast grocery and pharmacy retailer with more than 2,500 stores which includes 928 instore pharmacies across the country, we hold leading market share positions in many of the largest cities in the country.”
Noddle added that Supervalu is implementing a sizable capital program and refining its national and in-store merchandising programs.
Supervalu is one of the largest companies in the USA’s grocery channel with annual sales of almost US $40 billion. The company holds leading market share positions across the USA with its 2,500 retail grocery locations. Through its nationwide supply chain network, Supervalu provides distribution and related logistics support services to more than 5,000 grocery endpoints across the country.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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