Ingles Sees Net Sales Increase 16.3% in Fiscal Q2

Ingles Markets reported double-digit net sales increases for its second quarter, as well as first-half fiscal 2022, the Asheville, N.C.-based retailer announced May 5.

Net sales totaled $1.38 billion for the quarter ending March 26, an increase of 16.3% compared with $1.18 billion for the quarter ending March 27, 2021.

Gross profit for the second quarter totaled 348.6 million, or 25.3% of sales vs. $310.5 million in second-quarter 2021, or 26.2% of sales.

“We are pleased with our strong results due to the dedication and hard work from our associates,” Robert P. Ingle II, chairman of the board, said in a release. “We continue to work hard to provide affordable products and selection to our customers during these challenging times.”

Grocers today are having to contend with inflation, labor shortages and the continuing effects of the COVID-19 pandemic.

Ingles, which promoted Patricia "Pat" Jackson to chief financial officer in February, reported in its earnings release higher personnel costs, reflective, it said, of the tight labor market. Operating and administrative expenses for the second quarter totaled $254.7 million vs. 236.9 million second-quarter 2021.

Ingles also said that pandemic has had a “significant impact” on its operations since being declared a national emergency on March 13, 2020, and as such, it cannot predict the impact of the pandemic on future periods.

Net income for second-quarter 2022 totaled $68.6 million vs. $52.2 million in 2021. Basic and diluted earnings per share for Class A Common Stock were $3.70 and $3.61, respectively, for the quarter.

First-Half Results

Ingles also reported strong results for the six months ending March 26, with net sales of $2.77 billion, an increase of 16.6% from $2.37 billion in first-half fiscal 2021.

Gross profit totaled $699.1 million, compared with $624.7 million for the first six months of last fiscal year. Gross profit as a percentage of sales was 25.3% for first-half 2022 vs. 26.3% the year prior.

Labor costs again contributed to an increase in operating and administrative expenses, which totaled $514.8 million for first-half 2022 vs. $475 million for first-half 2021.

Net income was $134.8 million for first-half 2022 vs. $106 million the prior year. Capital expenditures for the March 2022 six-month period totaled $34.1 million vs. $69.4 million for the March 2021 six-month period.

The retailer said it currently has no outstanding borrowings under its $150 million line of credit.

Ingles has 198 supermarkets in six southeastern states. In conjunction with its supermarket operations, it 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.