INDIANAPOLIS -- Marsh Supermarkets here reported that net sales increased 3.2%, but net income decreased 18.1%, for the year ended April 1.
For the year, sales rose to $1.3 billion from $1.26 billion. Net income fell to $8.6 million from $10.5 million. Were it not for the cumulative effect of a change in accounting principles which resulted in a $1.9 million gain, last year's net income would have been $8.5 million, the company said.
Sales for the quarter declined 5% to $296.5 million from $312 million. Last year's quarter contained 13 weeks compared to 12 this year and revenues in the extra week amounted to approximately $23.6 million, according to the company.
"The current year's fourth quarter benefited from gains on the sale of real estate and a lower tax rate which offset the income effect generated by last year's extra week," the company said.
"In light of the competitive situation, we're extremely pleased," said Don Marsh, chairman, president and chief executive officer. "I anticipate next year to be even better."
The company will build three new supermarkets and three or four new convenience stores in existing markets this year, Marsh told SN.
Marsh Supermarkets operates 88 supermarkets and 181 convenience stores in Indiana and Ohio. The company also runs a wholesale business that services non-affiliated convenience stores throughout eight states, as well as a catering division.