Ready to bolster its go-to-market approach, SpartanNash has a lot to go on, following a successful second quarter that has the company holding steady on its projections for the rest of the year.
The Byron Center, Mich., retailer showed year-over-year gains in most categories, including a net earnings gain of $19.5 million, over $14 million more than second quarter 2022.
“Our team delivered solid results in the first half of 2023, leveraging transformational initiatives for growth and value. We are encouraged by the success to date, but also believe there is a long runway of benefits that will help us achieve our long-term strategic plan,” said SpartanNash President and CEO Tony Sarsam.
“We are now entering the next phase of our transformation, bolstering our go-to-market strategy and building on our signature strength of being the most customer-focused, innovative food solutions company. All of the elements of our long-term strategic plan differentiate SpartanNash as a growth-oriented organization, which further positions us to drive profitability and increase shareholder value.”
In the shorter term, SpartanNash is still looking at total net sales for the fiscal year to be as high as $10.2 billion and an adjusted EBITDA of $263 million. Last fiscal year, SpartanNash produced just over $9.6 billion in net sales with an adjusted EBITDA of $243 million.
For Q2 of 2023, the company had net sales of $2.31 billion, which is a 1.7% increase year-over-year and a retail comparable sales increase of 3.9% vs. Q2 2022. Gross profit was slightly off from a year ago — it was $352.4 million (15.2% of net sales) compared to $354.2 million (15.6% of net sales). The gross profit decline was driven by lower volumes while the gross profit decrease was due to lower inflation-related price change benefits in the wholesale segment compared to elevated levels in the prior year.
SpartanNash also reported operating earnings of $35.8 million, which is $23.5 million more than a year ago ($12.3 million).
At the wholesale level, net sales were up $31.9 million to $1.63 billion. Net sales were $1.60 billion in Q2 2022. Reported operating earnings were $21.5 million, which is $12.7 million more than last year.
Net sales for retail went up $6.6 million in Q2 2023 to $679 million, a 1% increase year-over-year. Reported operating earnings stood at $14.2 million, a big improvement over Q2 2022, where there was a $400,000 loss. Adjusted EBITDA increased $6.2 million to $25.4 million from $19.2 million a year ago.
