Ingles ‘Off to a Good Start’ in Q1

Ingles Markets Inc. has posted higher sales and net income for the three months ended Dec. 24, 2016, compared with the year-ago first-quarter period. With a favorable 3.3 percent sales gain over the comparative quarters, net income for the Asheville, N.C.-based Ingles, which operates 202 stores in six southeastern states, rang up $13.8 million for the quarter ended Dec. 24, 2016, versus  $13 million the previous year.

“We are off to a good start this year with increased sales and net income, and have planned improvements to our store base in 2017 that we believe our customers will appreciate,” noted Ingles Chairman Robert P. Ingle II.

Ingles’ net sales totaled $982.8 million for the quarter ended Dec. 24, 2016, compared with $951.1 million for the year-ago period, a rise of $31.7 million. Comparable-store sales, excluding gasoline, edged up 1.8 percent. Gallons of gas sold and the average price per gallon both increased from the December 2015 quarter to the December 2016 quarter. The number of customer transactions (excluding gas) rose 2.2 percent, while the comparable average transaction size (excluding gas) grew slightly compared with last year.

Gross profit for the company’s December 2016 quarter increased to $237.1 million, or 24.1 percent of sales. Retail gross margin (excluding gas) rose 50 basis points from December 2015 to December 2016. Gross profit for the December 2015 quarter came to $225.6 million, or 23.7 percent of sales.

Basic and diluted earnings per share for Class A Common Stock were 70 cents and 68 cents, respectively, for the quarter ended Dec. 24, 2016, compared with 66 cents and 64 cents per share, respectively, for the quarter ended Dec. 26, 2015. Basic and diluted earnings per share for Class B Common Stock were each 64 cents for the quarter ended Dec. 24, 2016, compared with 60 cents per basic and diluted Class B share for the year-ago period.

Capital expenditures totaled $29.3 million for the December 2016 quarter, versus $40.6 million for the December 2015 quarter. Ingles attributed this decrease mainly to the timing of larger development projects and sites purchased in the previous year for future store development. During the 12 months ended December 2016, the grocer opened two new stores, and closed one store that’s currently being rebuilt. The company anticipates total fiscal 2017 capital expenditures of between $100 million and $140 million.

In addition to its supermarkets, Ingles also operates neighborhood shopping centers, most of which contain a namesake anchor supermarket, as well as a fluid dairy facility that supplies its own supermarkets and unaffiliated customers.