SuperValu is celebrating a successful close to its third quarter of fiscal 2018, including finalizing an acquisition deal and a boost in net sales.
"We're pleased to have completed our acquisition of AG Florida early in the fourth quarter," said President and CEO Mark Gross. "The work done in the third quarter concluded with this deal which, combined with the acquisition of Unified Grocers earlier this fiscal year, demonstrates our commitment to the strategic growth of our Wholesale business. Furthermore, we're extremely pleased with the integration work at Unified and the progress made in that market."
According to the financial release, net sales hit $3.94 billion and net earnings from continuing operations of $18 million, or $0.46 per diluted share, including $4 million of after-tax merger and integration costs and $1 million of after-tax store closure charges and costs.
The detailed highlights of the financial quarter included:
"In addition to these recent acquisitions, we continue to achieve strong underlying growth in our Wholesale business,” Gross continued. “With the influx of significant new business in certain distribution centers, we experienced a larger-than-anticipated increase in expenses, but we're encouraged by the work we are doing to address those costs and believe they are manageable going forward. We remain committed to investing in our Wholesale business to drive future growth.”
From its retail aspect, SuperValu stated that it saw $1.02 billion in net sales compared to $1.06 billion last year, a decrease of 4.1 percent. Net loss from continuing operations for last year’s third quarter was $11 million, including $25 million of net after-tax charges and costs.
As for what’s left on the horizon for the final quarter of SuperValu’s fiscal 2018, it currently expects net earnings from continuing operations to be in the range of $(20) million to $2 million. Adjusted EBITDA is expected to be in the range of $475 million to $485 million, including the contribution from Unified Grocers and Associated Grocers of Florida.
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