MINNEAPOLIS — Nash Finch Co. here said Thursday that the acquisition of the Bag ’N Save and No Frills chains last year boosted its top line, as the company posted a 9.1% gain in second-quarter sales, to $1.2 billion.
Net income for the quarter, which ended June 15, totaled $8.9 million, vs. a loss of $85 million after a large goodwill impairment charge a year ago.
As previously reported, the company unveiled an agreement on July 22 to merge with Grand Rapids, Mich.-based Spartan Stores in a transaction valued at about $1.3 billion.
"We are pleased to report strong sales growth across all three of our business segments in the second quarter,” said Alec Covington, president and chief executive officer of Nash Finch. “The strategic investments made last year are now becoming evident in our top-line.”
Read more: Nash Finch Q1 Sales Up, Earnings Down
Combined wholesale and retail segment sales increased 15.4% to $667.3 million in the second quarter of 2013 vs. the prior year period, primarily due to the Bag ’N Save and No Frills acquisitions, which added $50.9 million in sales year-over-year. Because they previously had been customers, these acquisitions were also responsible for a $27.8 million decrease in wholesale sales in the second quarter of 2013. Retail same-store sales declined 4.1% in 2013.
Retail/wholesale EBITDA was $20 million, or 3% of sales, in the recent quarter vs. $14.4 million, or 2.5% of sales, in the second quarter of 2012. The increase in second quarter EBITDA was primarily due to increased retail sales from the acquisitions and a gain on early termination of a long-term supply agreement with a food distribution customer, Nash Finch said.
Military-segment sales increased 2.2% to $537.5 million, and EBITDA was $6.9 million or 1.3% of sales, in the second quarter 2013 vs. $11.8 million, or 2.2% of sales, in the second quarter of 2012.
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