Ingles' Net Sales, Gross Profit Down in 4Q
Following a trend this fiscal year, for its fourth quarter ended Sept. 28, Ingles Markets Inc. reported net sales of $1.40 billion for the quarter, compared with $1.58 billion for the quarter ended Sept. 30, 2023. Q4 results of fiscal 2024 had 13 weeks versus 14 weeks for the fourth quarter of fiscal 2023.
Gross profit for Ingles’ fourth quarter totaled $299.4 million, or 21.4% of sales, while gross profit for the year-ago period was $369.7 million, or 23.3% of sales. The grocer’s net loss came to $1.5 million for the fourth quarter of fiscal 2024 quarter, compared with net income of $52.6 million for the fourth quarter of fiscal 2023. Basic and diluted losses per share for Class A Common Stock were 8 cents, for the quarter ended Sept. 28, 2024, versus basic and diluted earnings per share of $2.83 and $2.77, respectively, for the quarter ended Sept. 30, 2023. Basic and diluted losses per share for Class B Common Stock were each 7 cents for the quarter ended Sept 28, 2024, compared with basic and diluted income per share of $2.57 for the quarter ended Sept. 30, 2023.
Due to the impact of Hurricane Helene, which devastated western North Carolina, including the area where Ingles’ head office located, resulting in catastrophic flooding that caused power, communication and water outages and major road closures, the company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by the storm, along with a property and equipment impairment loss of $4.5 million, for the quarter and year ended Sept. 28, 2024. In October, Ingles estimated that the financial impact of inventory and property loss would be between $35 million and $55 million, for which it expected between $10 million to $15 million of insurance reimbursement.
“After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region,” noted Chairman of the Board Robert P. Ingle II. “We are truly thankful for all the volunteers and the outpouring of support for our region.”
For the fiscal year ended Sept. 28, 2024, Ingles’ net sales totaled $5.64 billion, compared with $5.89 billion for the fiscal year ended Sept.30, 2023. The fiscal year ended Sept. 28, 2024, had 52 weeks, while the fiscal year ended Sept. 30, 2023, had 53 weeks.
Gross profit for the fiscal year ended Sept. 28, 2024, came to $1.3 billion, or 23.1% of sales, while gross profit for the fiscal year ended Sep. 30, 2023, came to $1.4 billion, or 23.8% of sales. Net income totaled $105.5 million for the fiscal year ended Sept. 28, 2024, compared with $210.8 million for the fiscal year ended Sept. 30, 2023. Basic and diluted earnings per share for Class A Common Stock were $5.68 and $5.56, respectively, for the fiscal year ended Sept. 28, 2024, versus $11.35 and $11.10, respectively, for the prior fiscal year. Basic and diluted earnings per share for Class B Common Stock were each $5.16 for current fiscal year, compared with last fiscal year's basic and diluted earnings per share of $10.32.
Ingles’ capital expenditures for the 2024 fiscal year were $210.9 million, versus $173.6 million for the 2023 fiscal year. The company said that its financial resources, including its line of credit and other internal and anticipated external sources of funds, would be enough to meet planned cap ex, debt service and working capital requirements for the foreseeable future.
In other Ingles financial news, the company revealed that it had received a notice from The Nasdaq Stock Market LLC, noting that because the company has not yet filed its annual report on Form 10-K for the fiscal year ended Sept. 28, 2024, it’s no longer in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to file all required periodic financial reports with the SEC in a timely manner. The notice has no immediate effect on the listing of the company’s shares on Nasdaq. Ingles attributed the filing delay to the impact of Hurricane Helene and said that it intended to file its annual report within the required 60-day period to either complete the filing or to submit a plan to regain compliance with the Nasdaq Listing Rule.
Asheville, N.C.-based Ingles operates 198 supermarkets in six southeastern states. In conjunction with its supermarket operations, the company runs neighborhood shopping centers, most of which contain an Ingles supermarket. It also owns a fluid-dairy facility that supplies its supermarkets and unaffiliated customers. Ingles is No. 54 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
