Florida-based Publix Super Markets Inc. reported its 2024 results last week showing sales of $59.7 billion, a 4.6% increase from $57.1 billion in 2023.
Comparable-store sales for the fiscal year ended Dec. 28 increased 2.9%, Publix said in a news release.
“Publix’s success is due to our associates,” Publix CEO Kevin Murphy said in the release. “I’m so thankful to serve with them in making shopping at Publix a pleasure.”
Net earnings for the fiscal year ended Dec. 28 were $4.6 billion, compared with $4.3 billion in 2023, an increase of 6.6%.
Earnings per share for the fiscal year ended Dec. 28 increased to $1.41 per share, up from $1.31 per share in 2023.
Excluding the impact of net unrealized gains on equity securities in 2024 and 2023, net earnings for the fiscal year ended Dec. 28 would have been $4 billion, compared with $4.1 billion in 2023, a decrease of 1%.
Earnings per share for the fiscal years ended Dec. 28 and Dec. 30, 2023, would have been $1.23 per share.
Publix full report
A deeper dive into the company’s annual K-10 report shows same-store sales primarily increased because of inflation, which covered the higher cost of acquiring products to sell, according to Jennifer Wu Tucker, an accounting professor at the University of Florida.
Also, sales increased but earnings did not, she said.
“Inflation has affected them,” Tucker said. “The incoming costs of the goods increased and then they passed down the cost to customers then the sales price increased too.”
The 2.9% sales increase was for existing stores, not sales at Publix’s new supermarkets. This means that 1.7% of the overall sales reported last week was the sales increase at new supermarkets.
By comparison, sales for 2023 were an increase of 4.7% from 2022. The 2022 fiscal year, which ends on the last Saturday of the calendar year, had an additional week. Without excluding the extra week, sales would have jumped 6.7% from 2022 to 2023. Also in comparison to its latest filing, existing store sales in 2023 were 4.2%, and 2.5% was from opening new stores.
So inflation resulted in a rise in sales to a greater extent in 2023 (4.2%) than in 2024 (2.9%), she said.
Under operating costs, the grocer reduced operating and administrative expenses overall mostly from a change in the Medicaid reimbursement process at its pharmacies.
But the decrease was offset by an increase in overall payroll cost to cover higher wages to its workers.
Further, the change in Medicaid reimbursements − which was outside the control of the company − also resulted in lower pharmacy sales and reduced administration costs but lowered the gross profit for the company.
Operating profit in 2024 was 7.5%, which was lower than in 2023 at 7.8%, with 2022 as the highest in recent years at 8.7%.
“The decrease in operating profit was primarily caused by the increase in payroll costs,” Wu Tucker said. She added inflation was likely the motivation behind paying workers more in recent years.
Fourth quarter results
Fourth quarter results were also reported on Monday. Publix’s sales for the last three months of 2024 were $15.5 billion, a 5.5% increase from $14.7 billion in 2023.
Comparable-store sales for the three months ended Dec. 28 increased 4.1%. The company estimates sales for the three months ended Dec. 28 increased 1.4% because of the impact of Hurricane Milton.
Net earnings for the three months ended Dec. 28 and Dec. 30, 2023, were $1.2 billion.
Equity investments
Earnings per share for the three months ended Dec. 28 increased to 37 cents per share, up from 36 cents per share in 2023.
Excluding the impact of net unrealized gains (or paper gains) on equity securities in 2024 and 2023, net earnings for the three months ended Dec. 28 and Dec. 30, 2023, would have been $1.1 billion.
Earnings per share for the three months ended Dec. 28 would have been 34 cents per share, compared with 32 cents per share in 2023.
The results in the Publix press release are based on audited financial statements that were filed last week with the U.S. Securities and Exchange Commission. Publix provides further financial information on its website at corporate.publix.com/stock.
Publix stock price and expansion
Effective March 1, Publix’s stock price increased from $18.05 per share to $19.20 per share. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.
Publix expects to spend $2.5 billion in 2025 on new stores, remodeling existing stores, constructing and expanding warehouses, and new and enhanced technology including hardware and software.
Throughout an eight-state operating region in the Southeastern United States, Publix has 1,390 store locations, including 872 stores in Florida. Other states and store counts include Alabama, 94, Georgia, 217, Kentucky, 1, North Carolina, 55, South Carolina, 69, Tennessee, 59, and Virginia, 23.
Publix is one of the 10 largest-volume supermarket chains in the country with retail sales in 2022 of $54.5 billion.
Founded in 1930 in Winter Haven by George W. Jenkins, the grocer employs 255,000 people throughout its operating area.
