Ingles Sees Increased Sales, Profits in Q1

Asheville, N.C.-based Ingles Markets said net sales in its fiscal first quarter of 2022 jumped by 16.9% and profits soared to $350.5 million as at-home consumer behavior continues to dominate because of the pandemic.

Net sales for the quarter ending Dec. 25 totaled $1.39 billion for the retailer, which operates 197 Ingles supermarkets in the Southeast, according to a Feb. 3 statement.

Gross profits of $350.2 million represented 25.2% of sales. The company reported net earnings of $66.2 million, or $3.48 per diluted share.

“We were fortunate to have good sales and overall results for the quarter that includes Thanksgiving and Christmas,” said Robert P. Ingle II, chairman of the board, in a statement. “Despite supply chain disruptions from the omicron variant, our associates did an excellent job of meeting customer needs under difficult circumstances.”

Operating and administrative expenses for the December 2021 quarter totaled $260.1 million compared with $238.2 million for the December 2020 quarter. Most of the increase, the company said, was due to higher personnel costs that reflect a tight labor market.

Interest expense totaled $5.4 million for the first quarter of fiscal 2022 compared with $6.4 million for the first quarter of fiscal 2021.

Total debt at the end of December 2021 was $586.1 million vs. $587.9 million at the end of December 2020.

Capital expenditures for the December 2021 quarter totaled $21.3 million compared with $34.2 million for the December 2020 quarter.

The Southeastern regional grocer 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.

In other financial news, Ronald Freeman, VP of finance and CFO for Ingles Markets Inc., will retire this month after 17 years with the company.