Ingles Markets Increases Sales in Q1
Despite supply chain disruptions, Ingles Markets Inc. fared well during the 2021 holiday season, as shown by the increased sales and net income the company reported for its first quarter ended Dec. 25, 2021.
Net sales totaled $1.39 billion for the quarter, an increase of 16.9%, compared with $1.19 billion for the quarter ended Dec. 26, 2020. Net income came in at $66.2 million for first quarter, compared with $53.8 million for the December 2020 quarter. The Southeastern regional grocer also reported basic and diluted earnings per share for Class A Common Stock at $3.57 and $3.48, respectively, compared with $2.73 and $2.66, respectively, for the prior year.
“We were fortunate to have good sales and overall results for the quarter that includes Thanksgiving and Christmas,” said Robert P. Ingle II, chairman of the board. “Despite supply chain disruptions from the Omicron variant, our associates did an excellent job of meeting customer needs under difficult circumstances.”
Meanwhile, gross profit for the first quarter of fiscal 2022 totaled $350.5 million, or 25.2% of sales. Gross profit for the first quarter of fiscal 2021 was $314.2 million, or 26.4% of sales.
Operating and administrative expenses for Ingles increased to $260.1 million, compared with $248.9 million in the previous quarter. Most of this increase was due to higher personnel costs that reflect a tight labor market.
Interest expense totaled $5.4 million for the start of fiscal 2022, compared with $6.4 million for the first quarter of fiscal 2021. Ingles began its first quarter with total debt of $589.5 million. This slightly decreased to $586.1 million by the end of the first quarter.
Capital expenditures for the December 2021 quarter totaled $21.3 million, compared with $34.2 million in the prior year.
The company has no outstanding borrowings under its $150 million line of credit. Ingles believes its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be sufficient to meet planned cap ex, debt service and working capital requirements for the foreseeable future.
In other news, at the start of the first quarter, longtime finance exec Ron Freeman revealed his impending retirement as Ingles CFO. He will step away from the role on Feb. 16. Freeman was also an Ingles board member and will leave that role upon retirement.
Operating 198 supermarkets in six southeastern states, Asheville, N.C.-based Ingles Markets is No. 52 on The PG 100, Progressive Grocer’s list of the top food and consumables retailers in North America.
