Albertsons Companies posted a loss in the final quarter after a massive $600 million charge related to the opioid settlement framework.

The food and drug retailer reported a net loss of $481 million in the quarter ended February 28, compared to net income of $171.8 million a year ago.

This included a $599.8 million charge, net of tax, related to the opioid settlement framework, which is intended to resolve opioid-related claims that have been or may be asserted against the company by participating states, political subdivisions and Native American tribes. The company expects payments under this framework to be made over nine years. 

Adjusted net income, which excluded the charge, was $252 million.

Net sales for the quarter rose 8 per cent to $20.3 billion, mainly due to the extra 13th week. Identical sales increased by a more modest 0.7 per cent amid pricing headwinds related to the Inflation Reduction Act (IRA) and a mix shift within the broader pharmacy industry.

Digital sales soared 16 per cent, while loyalty members increased 12 per cent to 51.2 million

For the full year, net sales grew 3.5 per cent to $83.1 billion, with identical sales up 2 per cent. Net income went down from $958 million to $217 million.

“Fiscal 2025 was a year of disciplined execution and resilience, as we closed the year with a solid fourth quarter that delivered strong adjusted EBITDA despite meaningful top-line pharmacy-related headwinds,” said Susan Morris, CEO of Albertsons Companies.

“As we enter fiscal 2026, we are building on this foundation by scaling our productivity engine and positioning the company to deliver earnings growth, strong cash flow, and long-term shareholder returns.”

The retailer expects identical sales to be flat to up 1 per cent this year, reflecting about 150 basis points of headwind related to the IRA, which took effect on January 1.