Ingles Markets sees Q1 sales dip

Ingles Markets has reported its first quarter results for the three months ended December 30, 2023.

Net sales totaled $1.48 billion for the quarter ended December 30, 2023, a decrease of 0.8% compared with $1.49 billion for the quarter ended December 24, 2022.

Gross profit for the first quarter of fiscal 2024 totaled $348.8 million, or 23.6% of sales. Gross profit for the first quarter of fiscal 2023 was $371.2 million, or 24.9% of sales.

Operating and administrative expenses for the first quarter of fiscal 2024 totaled $289.8 million compared with $276.2 million for the first quarter of fiscal 2023.

Interest expense totaled $5.7 million for the first quarter of fiscal 2024 compared with $5.3 million for the first quarter of fiscal 2023. Total debt at the end of the first quarter of fiscal 2024 was $546.9 million compared with $564.5 million at the end of the first quarter of fiscal 2023.

Net income totaled $43.4 million for the first quarter of fiscal 2024 compared with $69.4 million for the first quarter of fiscal 2023. Basic and diluted earnings per share for Class A Common Stock were $2.33 and $2.28, respectively, for the quarter ended December 30, 2023, compared with $3.73 and $3.65, respectively, for the quarter ended December 24, 2022.

Capital expenditures for the first quarter of fiscal 2024 totaled $63.2 million compared with $59.3 million for the first quarter of fiscal 2023.

Ingles has no outstanding borrowings under its $150 million line of credit. The grocer said it believes its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.

Robert P. Ingle II, Ingles chairman of the board, said, “During the quarter, we remained focused on providing service and value to our customers. We are grateful to our associates for their continued dedication and service.”

Ingles Markets operates in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets in addition to neighborhood shopping centers, most of which contain an Ingles supermarket. The retailer also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers.