While Publix Sales Increase, Net Earnings Decrease 59% in Q1
Publix Super Market’s sales momentum has continued in the first quarter ended March 26. The Lakeland, Fla.-based grocer’s sales for the period were $13.2 billion, a 13.5% increase from $11.7 billion in 2021. The increase in sales was attributed primarily to new supermarket sales and an 11.7% increase in comparable-store sales. During the first quarter, the company opened five supermarkets (including two replacements) and remodeled 12. Comps increased primarily because of increased product costs.
Net earnings for the three months ended March 26 were $618 million, however, compared with $1.5 billion in 2021, a decrease of almost 59%. Net earnings as a percentage of sales were 4.7% compared with last year’s 12.8%. Earnings per share for the first quarter decreased to 90 cents per share, down from $2.16 per share in 2021. Excluding the impact of net unrealized losses on equity securities in 2022 and net unrealized gains on equity securities in 2021, net earnings would have been $1.1 billion, compared with $909.8 million in 2021, an increase of 15.5%. According to the company, the increase in net earnings as a percentage of sales for first quarter was primarily attributable to the increase in operating profit as a percentage of sales.
Meanwhile on April 1, Publix’s board of directors approved a 5-for-1 stock split. The stock split was effective as of the close of business on April 14. As a result, the company’s stock price was adjusted from $68.80 per share to $13.76 per share.
Effective May 1, Publix’s stock price increased from $13.76 per share to $14.91 per share.
“After two years of the difficult pandemic, we are delighted to share the news of a stock split and now a stock price increase,” said Publix CEO Todd Jones. “This good news is the result of the efforts of our associate owners and their dedication to serving our customers, communities and each other.”
Publix also noted an increase in the number of authorized shares of its common stock, from 1 billion to 4 billion shares, and that the board declared a quarterly dividend. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.
As it heads into its second quarter, Publix is looking to improve its e-commerce service. On April 28, the food retailer debuted 15-minute delivery to its Miami customers for the first time, courtesy of Instacart’s nano-fulfillment solution, Carrot Warehouses.
“As we continue to evolve our e-commerce strategy, 15-minute delivery is another example of how we’re committed to meeting our customers wherever they are – whether it’s in-store or online for a convenience need,” said Erik Katenkamp, VP of omnichannel and application development at Publix. “Instacart’s suite of solutions allows us to unlock and roll out 15-minute delivery in a major metro area like Miami. Introducing nano-fulfillment centers powered by the Instacart Platform is another step in our omnichannel strategy, and we look forward to continuing to exceed our customers’ expectations.”
As of March 26, employee-owned and -operated Publix had 1,296 supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The company plans to expand its operations into Kentucky in 2023. Publix is No. 11 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America.
