Ingles Markets reported a dip in sales during its second quarter financial results on Thursday.
Net sales were $1.37 billion dollars for the quarter ended March 30, a decrease of 0.95 percent year over year. Gross profits and net income also took a small hit. The Black Mountain, North Carolina-based grocer had $321.9 million dollars in gross profits during the second quarter versus $325.9 million dollars during the prior-year period.
Operating and administrative expenses for the second quarter of fiscal 2024 totaled $284.8 million, as compared with $268.9 million for the second quarter of fiscal 2023.
Interest expense totaled $5.6 million for the second quarter of fiscal 2024, as compared with $5.3 million for the second quarter of fiscal 2023.
Net income totaled $31.9 million for the second quarter of fiscal 2024, as compared with $40.5 million for the second quarter of fiscal 2023. Basic and diluted earnings per share for Class A Common Stock were $1.72 and $1.68, respectively, for the quarter ended March 30, 2024, as compared with $2.18 and $2.13, respectively, for the quarter ended March 25, 2023.
First half fiscal 2024 net sales totaled $2.85 billion, a decrease of 0.88% compared with $2.87 billion in the first half of fiscal 2023.
Gross profit for the six months ended March 30, 2024, totaled $670.7 million, as compared with $697.1 million for the first six months of last fiscal year. Gross profit, as a percentage of sales, was 23.5% for the first half of fiscal 2024, compared with 24.3% for the first half of fiscal 2023.
Operating and administrative expenses totaled $574.6 million for the six months ended March 30, 2024, as compared to $545.1 million for the six months ended March 25, 2023.
Interest expense increased to $11.3 million for the six-month period ended March 30, 2024, as compared with $10.7 million for the six-month period ended March 25, 2023. Total debt as of March 30, 2024, was $539.1 million compared with $556.7 million as of March 25, 2023.
Net income totaled $75.3 million for the six-month period ended March 30, 2024, as compared with $109.9 million for the six-month period ended March 25, 2023. Basic and diluted earnings per share for Class A Common Stock were $4.05 and $3.96, respectively, for the six months ended March 30, 2024, as compared to $5.92 and $5.79, respectively, for the six months ended March 25, 2023.
Capital expenditures for the first half of fiscal 2024 totaled $98.4 million compared with $91.4 million for the first half of fiscal 2023.
The company currently has no outstanding borrowings under its $150 million line of credit. Ingles said it believes its financial resources, including its line of credit and other internal and external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.
Headquartered in Asheville, N.C., Ingles Markets operates 198 supermarkets in six southeastern states. The retailer also operates neighborhood shopping centers, most of which contain an Ingles supermarket. The company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers.
