Albertsons 2007 Annual Report Download - page 28

Net
S
ales
Net sales for fiscal 2007 were $37,406 compared with $19,864 last
y
ear, an increase of 88 percent. Retail food
sales were approximatel
y
7
5
percent of Net sales and Suppl
y
chain services sales were approximatel
y
2
5
percen
t
o
f Net sales for fiscal 2007, compared with approximately 54 percent and approximately 46 percent, respectively
,
l
ast
y
ear.
R
etail food sales for fiscal 2007 were $28,016 compared with $10,635 last
y
ear, an increase of 163 percent. Th
e
i
ncrease was
d
ue pr
i
mar
il
ytot
h
e Acqu
i
s
i
t
i
on. I
d
ent
i
ca
l
store reta
il
sa
l
es growt
h
,
d
e
fi
ne
d
as stores operat
i
ng
f
o
r
f
our full quarters, includin
g
store expansions and excludin
g
fuel, for fiscal 2007 as compared to fiscal 200
6
was
ne
g
ative 1.1 percent. Identical store retail sales
g
rowth on a combined basis, as if the Acquired Operations stores
were
i
nt
h
e store
b
ase
f
or
f
our
f
u
ll
quarters, was pos
i
t
i
ve 0.4 percent
.
Dur
i
n
gfi
sca
l
2007, t
h
e Compan
y
acqu
i
re
d
1,117 stores t
h
rou
gh
t
h
e Acqu
i
s
i
t
i
on, a
dd
e
d
73 new stores t
h
rou
gh
new store development and closed 7
5
stores, 47 of which were acquired throu
g
h the Acquisition
.
T
ota
l
reta
il
square
f
ootage,
i
nc
l
u
di
ng acqu
i
re
d
stores an
dli
cense
d
stores an
d
exc
l
u
di
ng t
h
e
di
veste
d
Scott’s,
J
ewe
l
-Osco M
il
wau
k
ee, C
hi
ca
g
oan
d
P
i
tts
b
ur
gh
stores,
i
ncrease
d
to approx
i
mate
ly
84 m
illi
on square
f
eet at t
h
e
end of fiscal 2007 compared to approximatel
y
30 million square feet at the end of fiscal 2006.
Supply chain services sales for fiscal 2007 were
$
9,390 compared with
$
9,229 last year, an increase of 2 percent.
Thi
s
i
ncrease
i
spr
i
mar
ily d
ue to new
b
us
i
ness
f
rom t
h
e tra
di
t
i
ona
lf
oo
ddi
str
ib
ut
i
on
b
us
i
ness an
d
temporar
y
business, partiall
y
offset b
y
customer attrition.
G
ross Pro
fit
Gross profit, as a percent of Net sales, was 21.8 percent for fiscal 2007 compared with 14.
5
percent last year. The
i
ncrease
i
n Gross pro
fi
t, as a percent o
f
Net sa
l
es, pr
i
mar
il
yre
fl
ects t
h
e
i
ncrease
i
n Reta
il f
oo
d
sa
l
es, w
hi
c
hh
as
a
h
i
g
her
g
ross profit percenta
g
e than Suppl
y
chain services, as a percent of total Net sales as a result of th
e
Ac
q
uisition
.
S
elling and Administrative Expense
s
Se
lli
ng an
d
a
d
m
i
n
i
strat
i
ve expenses, as a percent o
f
Net sa
l
es, were 18.3 percent
f
or
fi
sca
l
2007 compare
d
w
i
t
h
12.3 percent
l
ast year. T
h
e
i
ncrease
i
nSe
lli
ng an
d
a
d
m
i
n
i
strat
i
ve expenses, as a percent o
f
Net sa
l
es, pr
i
mar
ily
reflects the hi
g
her percenta
g
e of Retail food sales as a percenta
g
e of total Net sales as a result of the Acquisition,
which was partially offset by Acquisition-related pre-tax costs of
$
65, a pre-tax charge for Scott’s of
$
26 and
incremental pre-tax stock option expense associated with the Company’s adoption of SFAS No. 123(R) of
$
25.
Fiscal 2006 included pre-tax char
g
es of $174 primaril
y
related to Chica
g
o and Pittsbur
g
h
.
O
perat
i
ng Earn
i
ngs
Operatin
g
earnin
g
s for fiscal 2007 were $1,305 compared with $435 last
y
ear, primaril
y
reflectin
g
the results o
f
the Acquisition. Operating earnings for fiscal 2007 were impacted by Acquisition-related pre-tax costs of
$
65,
a
pre-tax char
g
e for Scott’s of $26 and incremental pre-tax stock option expense associated with the Compan
y
’
s
a
doption of SFAS No. 123(R) of $25. Retail food Operatin
g
earnin
g
s for fiscal 2007 were $1,179, or 4.2 percent
o
f Retail food Net sales, compared with last year’s Retail food Operating earnings of
$
269, or 2.5 percent o
f
R
eta
il f
oo
d
Net sa
l
es. T
h
e
i
ncrease
i
n Reta
il f
oo
d
Operat
i
n
g
earn
i
n
g
s, as a percent o
f
Reta
il f
oo
d
Net sa
l
es
,
primaril
y
reflects the results of the Acquisition and pre-tax char
g
es of $174 in fiscal 2006 primaril
y
related t
o
C
hicago and Pittsburgh. Supply chain services Operating earnings for fiscal 2007 were
$
257, or 2.7 percent of
22