A fourth quarter decline in volume for both its wholesale and retail segments at SpartanNash resulted in a net sales growth drop of 2.8% to $2.25 billion, the company reported on Thursday.
Wholesale net sales dropped 2% to $1.6 billion in the fourth quarter ended Dec. 30, SpartanNash said. Meanwhile, retail sales were down 4.5% to $647 million, a decline driven primarily by reduced food assistance program benefits and a drop in fuel sales.
“Our team is proud of another strong year in which we have demonstrated year-over-year growth, delivered record profitability, and performed in line with our expectations, all in spite of a challenging macroeconomic environment,” said SpartanNash President and CEO Tony Sarsam in a press release. “We are on track to achieve the objectives in our long-term strategic plan as we focus on creating enhanced customer value and capturing additional cost savings from our transformational initiatives.
“We expect 2024 to be another pivotal year of market share growth in our wholesale and Retail segments. Our talented associates have built a strong foundation for us to pursue both organic and inorganic opportunities.”
SpartanNash reported an increased adjusted EBITDA of $53.6 million, up from $47.2 million during the same period in 2022.
Net earnings were also up at $0.30 per diluted share for the quarter. That’s compared to $0.02 year over year. “The increase was primarily due to a higher gross profit rate and lower incentive compensation. This favorability was partially offset by lower unit volumes and an increase in restructuring and asset impairment charges,” the company said.
For the fiscal year, net sales at SpartanNash grew 0.9% to $9.73 billion. Wholesale net sales increased 1.1% to $6.92 billion, and retail increased 0.4% to $2.81 billion.
