Sponsored By

Sales and Profits Jump for Ingles in Q1, Aiding Debt Reduction

Year-over-year debt reduced by more than $250M. The retailer has used the pandemic sales windfall and low interest rates to reduce debts by more than $250M from the same period last year.

Jon Springer, Executive Editor

February 4, 2021

1 Min Read
Ingles Markets storefront
Ingles Markets storefrontWGB Staff photo

Ingles Markets said sales in its fiscal first quarter jumped by 10.4% and profits soared as it continues to reap the benefits of consumer behavior changes associated with the pandemic.

The Asheville, N.C.-based retailer, which operates 197 Ingles supermarkets in the Southeast, said sales for the quarter ending Dec. 26 totaled $1.19 billion. Gross profits of $314.2 million represented 26.4% of sales, up from 23.9% of sales in last year’s first quarter. Net earnings of $53.8 million, or $2.66 per diluted share, increased by 204% in the quarter.

“We are pleased with our results, and we all continue to work hard to provide a safe and reliable shopping environment for our associates and customers,” said Robert P. Ingle II, chairman of the board. “We are also honored to participate in the COVID-19 vaccine distribution.”

Ingles has used its recent financial windfall to strengthen its balance sheet, taking advantage of low interest rates to refinance loans and pay down debt. The company has reduced its total debt to $587.9 million at the end of the quarter vs. $850 million at the same point in 2019. During the most recent quarter Ingles incurred $3.7 million of debt extinguishment costs associated with $155 million of early repayment of debt.

Capital expenditures for the quarter totaled $34.2 million compared with $31.1 million for the December 2019 quarter. Ingles said its investment is focused on stores that opened this fiscal year as well as stores scheduled to open later.

Read more about:

Ingles

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like