Ingles Markets reports increased sales for fiscal 2023 Q2 and first half

Asheville, North Carolina-based Ingles Markets on Thursday reported an increase in net sales for both the second quarter and first six months of fiscal 2023.

For the quarter ended March 25, Ingles reported net sales of $1.38 billion, up 0.25% from the year-ago period. Gross profits of $325.9 million represented 24.6.% of sales, which were lower compared with $68.6 million from the year-ago period.

Operating and administrative expenses for the second quarter of fiscal 2023 totaled $268.9 million, as compared with $254.7 million for the second quarter of fiscal 2022. Basic and diluted earnings per share for Class A Common Stock were $2.18 and $2.13, respectively, for the quarter, compared with $3.70 and $3.61, respectively, for the quarter ended March 26, 2022.

The first half of fiscal 2023 saw net sales edge up to $2.87 billion, a gain of 3.8% from $2.77 billion in the first half of fiscal 2022.

Gross profit, however, took a slight dip for the 2023 first half, totaling $697.1 million versus $699.1 million for the first six months of the last fiscal year. Gross profit, as a percentage of sales, dipped to 24.3% for the first half of 2023, compared with 25.3% for the first half of 2022.

Basic and diluted earnings per share for Class A Common Stock were $5.92 and $5.79, respectively, for the six months ended March 25, 2023, compared with $7.26 and $7.10, respectively, for the six months ended March 26, 2022.

“We are pleased with our results and appreciate the hard work and dedication of our customer-driven associates, who helped us provide affordable, high-quality products in an inflationary environment,” said Robert P. Ingle II, chairman of the board, in a statement.

Operating and administrative expenses totaled $545.1 million for the six months ended March 25, 2023, compared with $514.8 million for the six months ended March 26, 2022.

The Southeastern grocer reported that capital expenditures for the first half of fiscal 2023 totaled $91.4 million, compared with $34.1 million for the first half of fiscal 2022.

Ingles Market said it has no outstanding borrowings under its $150 million line of credit and 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.

Ingles operates nearly 200 supermarkets in six states. The company also operates neighborhood shopping centers, most of which contain an Ingles Market, as well as a dairy facility that supplies its grocery stores and other customers.