Ingles Markets Exceeds Prior Year-to-Date Performance

Southeast grocer Ingles Markets Inc. has reported increased sales for the three and nine months ended June 25.

Net sales totaled $1.46 billion for the third quarter ended June 25, 2022, compared with $1.28 billion for the quarter ended June 26, 2021. Excluding gasoline sales, total grocery comparable-store sales increased 5.7% over the comparative fiscal quarter.

Gross profit for the company's third quarter totaled $351.9 million, or 24.1% of sales. Gross profit for last year’s quarter was $337.5 million, or 26.4% of sales.

Ingles’ operating and administrative expenses totaled $257.3 million compared with $239.4 million in the prior year, while interest expense totaled $5.3 million, compared with last year’s $5.5 million.

Net income totaled $67.8 million for the grocer’s third quarter; in contrast, last year’s third quarter was $72.0 million. According to the company, net income is down compared with the prior year’s quarter due to rising fuel and food costs, supply chain issues, and the competitive labor market.

Basic and diluted earnings per share for Class A Common Stock were $3.65 and $3.57, respectively, for the quarter ended June 25, 2022, compared with $3.88 and $3.79, respectively, for the quarter ended June 26, 2021. Basic and diluted earnings per share for Class B Common Stock were each $3.32 for this year’s third quarter, and $3.52 for last year’s third quarter.

Robert P. Ingle II, chairman of the board, noted: “We were able to achieve strong results during the quarter, despite significant inflationary pressures. We applaud the hard work and dedication of our associates at all levels of our company for helping us exceed prior year-to-date performance.”

Ingles also reported capital expenditures for the June 2022 nine-month period, which totaled $73.2 million, compared with $108.0 million for the June 2021 nine-month period. Capital expenditures for the entire fiscal year are expected to be approximately $100 million to $120 million.

The company currently has full availability under its $150.0 million line of credit. According to Ingles, its financial resources, including the line of credit, will be sufficient to meet planned capital expenditures, debt service and working capital requirements for the foreseeable future.

Asheville, N.C.-based Ingles Markets operates 198 supermarkets in North Carolina, Georgia, South Carolina, Tennessee, Virginia and Alabama. As of June 25, the company operated 111 in-store pharmacies and 107 fuel centers. Ingles is No. 58 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.