Ingles Grows Q3 Net Sales

Ingles Markets Inc. saw its third-quarter sales grow in every retail product category and in nonretail operations, helped along by the timing of the 2017 Easter holiday.

For the third quarter ended June 24, Ingles Markets Inc. has reported net sales of $984.4 million, a 2.8 percent increase, and net income of $11.5 million, compared with $957.2 million and $12.7 million, respectively, for the year-ago period. For the nine months ended June 24, the company’s net sales came to $2.91 billion and net income was $34.5 million, versus $2.83 billion and $40 million, respectively, last year.

According to the grocer, the quarter benefited from extra sales in connection with Easter, which occurred in April this year, rather than in March, as it did in 2016. Excluding gasoline sales and the effect of extra Easter sales in the current quarter, retail grocery comparable-store sales edged up 0.8 percent over the year-ago period. The number of customer transactions, excluding gas, remained the same, while the average transaction size, excluding gas, rose 2 percent.

“We continue to improve our store base to offer more products and a great shopping experience to our customers,” noted Chairman Robert P. Ingle II. “We have a number of projects in process that will contribute to our long-term performance.”

Gross profit for the June 2017 quarter bumped up 1.8 percent to $237.1 million, versus $232.9 million last year. Gross profit, as a percentage of sales, was 24.1 percent for the June 2017 quarter, compared with 24.3 percent for the year-ago period. Excluding gas sales, retail grocery gross margin dropped 64 basis points, comparing the June 2017 and June 2016 fiscal quarters.

The nine-month net sales increase occurred across retail product categories and nonretail operations, according Ingles. Retail grocery comps, excluding gas, rose 0.8 percent. The number of customer transactions and the average transaction size, both excluding gas, went up 0.8 percent and 0.5 percent, respectively.

Gross profit for the nine months ended June 24, increased 2.2 percent and came to $702.3 million, compared with $687.2 million for the year-ago period. Gross profit, as a percentage of sales, was 24.1 percent for the June 2017 nine-month period, versus 24.3 percent last year. Retail grocery segment gross profit as a percentage of sales, excluding gas, fell five basis points, comparing the first nine months of fiscal 2017 and fiscal 2016.

Capital expenditures for the June 2017 nine-month period totaled $90.0 million, versus $107.8 million last year. Ingles noted that cap ex for this year were focused on store buildings opened in 2017 and slated to open in early 2018, in addition to continuing improvements to its existing stores. The company expected cap ex for the entire fiscal year of about $100 million to $140 million.

Asheville, N.C.-based Ingles operates 199 supermarkets across six southeastern states. The company also operates neighborhood shopping centers, most of which contain an Ingles supermarket, and owns a fluid dairy facility that supplies company supermarkets as well as unaffiliated customers.