Food and drug retailer Albertsons Companies has posted lower profit for the second quarter despite an uplift in same-store sales.

For the quarter ended September 7, net income was $145.5 million, compared to $266.9 million in the same period last year.

The company’s net sales were flat at $18.6 billion, while identical sales rose 2.5 per cent, driven by higher pharmacy sales. Its digital sales jumped 24 per cent, and loyalty members increased 15 per cent to 43 million.

Albertsons CEO Vivek Sankaran attributed the strong growth in digital sales and pharmacy operations to the company’s investments in its ‘Customers for Life’ strategy.

“We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers, and accelerated growth in our Albertsons Media Collective,” he said.

Sankaran expects headwinds related to investments in associate wages and benefits and higher competitions to continue in the coming months. The headwinds will be partially offset by ongoing and new productivity initiatives, he added.

As of September 7, Albertsons operated 2267 retail food and drug stores with 1726 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The company owns more than 20 banners including Albertsons, Safeway, Vons, Jewel-Osco, and Shaw’s among others.