Ingles Markets reports mediocre Q3 results

Ingles Markets on Thursday reported mediocre third-quarter results, with net sales totaling $1.43 billion for the quarter ended June 24, compared with $1.46 billion for the quarter the previous year.

The Asheville, North Carolina-based grocery retailer also reported a dip in gross profit, which totaled $338.1 million compared with $351.9 million for the quarter the previous year. Gross profit, as a percentage of sales, dipped to 23.6% for the third quarter, compared with 24.1% for the quarter the previous year.

Also taking a tumble was net income, which totaled $48.3 million, as compared with $67.8 million for the third quarter the previous year.

Basic and diluted earnings per share for Class A Common Stock were $2.60 and $2.54, respectively, for the quarter, as compared with $3.65 and $3.57, respectively, for the quarter the previous year.

The grocery retailer also reported its earnings for the first nine months of fiscal 2023 which revealed net sales that totaled $4.31 billion were down compared with $4.23 billion for the nine months ended June 25 of last year.

Gross profit, as a percentage of sales, dipped slightly to 24.0% for the first nine months of fiscal 2023, compared with 24.9% for the quarter the previous year.

Ingles Markets said it has no outstanding debt 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.

“It is our goal to provide the best customer experience with fresh quality products at affordable prices,” said Robert P. Ingle II, chairman of the board, in a statement. “We appreciate our customers and associates for their continued dedication and loyalty.”

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.