by Food Trade News Team
Albertsons Companies reported a fourth-quarter loss for fiscal 2025 after booking a significant charge tied to a nationwide opioid settlement. Underlying earnings topped expectations and the company raised its dividend.
The chain posted a net loss of $480.8 million, or 94 cents per share, for the quarter ended Feb. 28, compared with net income of $171.8 million a year earlier. The loss was driven by a roughly $774 million settlement framework intended to resolve substantially all opioid-related claims brought by state, local, and tribal governments.
Excluding the charge and other items, adjusted earnings rose to 48 cents per share, beating analyst expectations and marking continued underlying profitability.
Net sales increased to about $20.3 billion from $18.8 billion a year earlier but fell short of Wall Street forecasts. Of this increase, $1.4 billion was attributed to an extra week in Q4 fiscal 2025. Identical sales rose 0.7%; driven by pharmacy sales, but below expectations.
The opioid agreement, which the company said is not an admission of wrongdoing, would be paid out over nine years and is designed to resolve most outstanding litigation tied to prescription opioid dispensing practices.
The settlement overshadowed otherwise steady operating performance. For the full fiscal year, Albertsons reported net income of about $217 million. Digital sales continue to grow.
Company executives pointed to ongoing pressure on lower-income consumers, including reduced government assistance and higher fuel costs, as factors weighing on sales trends.Â
Albertsons increased its quarterly dividend 13% to 17 cents per share, part of a broader capital return strategy that includes share repurchases.
Looking ahead, the company forecast identical sales growth ranging from flat to up 1% in fiscal 2026, reflecting a cautious outlook amid persistent economic pressures and moderating pharmacy growth.
The results place Albertsons amongst major retailers navigating both consumer belt-tightening and the financial fallout from opioid litigation, which has led to multibillion-dollar settlements across the industry. Kroger settled opioid claims in 2024 in a $1.37 billion settlement, while Walmart agreed to pay $3.1 billion in 2022.
