Ingles Posts Higher Q4 Net Sales
Ingles Markets Inc. has reported total sales of $3.79 billion for fiscal 2016, compared with $3.78 billion in fiscal 2015. For the fiscal years ended September 2016 and 2015, the company’s net income came to $54.2 million in 2016, versus $59.4 million in 2015.
For the fourth quarter of fiscal 2016, however, Ingles’ net sales were $962.4 million, compared with $952.8 million for the year-ago period. Comparable-store sales, excluding gasoline, inched up 1.6 percent.
Net sales rose for the quarter and the year despite considerably lower retail gasoline prices compared with the prior-year periods, the company noted, adding that gas prices were lower for both the fourth quarter and the full fiscal 2016 year versus the prior year.
Net income for the grocer’s fourth quarter of fiscal 2016 was $14.2 million, down from $16.2 million for the fourth quarter of fiscal 2015. Basic and diluted earnings per share for Ingles’ publicly traded Class A common stock were 72 cents and 70 cents per share, respectively, for the September 2016 quarter, compared with 83 cents and 80 cents per share, respectively, for the September 2015 quarter.
Gross profit for the grocer’s fourth quarter of fiscal 2016 grew to $237.2 million, compared with $228.1 million for the year-ago period. Gross profit as a percentage of sales was 24.7 percent and 23.9 percent for the 2016 and 2015 fourth quarters, respectively.
“During 2016, we worked very hard to improve our stores, resulting in positive customer response,” said Ingles CEO Robert P. Ingle II.
For the full fiscal year 2016 ended September 2016, Ingles’ net sales were $3.79 billion, versus $3.78 billion last year. Excluding gas, the grocer achieved record comps in fiscal 2016, increasing 2 percent from fiscal 2015.
The company’s gross profit for the fiscal year ended Sept. 24 rose $31.1 million, or 3.5 percent, to $924.4 million, or 24.4 percent of sales, compared with $893.3 million, or 23.6 percent of sales, for the fiscal year ended Sept. 26, 2015. Retail grocery gross profit as a percentage of total sales (excluding gasoline) increased 16 basis points comparing fiscal 2016 with fiscal 2015.
Ingles’ net income for fiscal 2016 came to $54.2 million, down from net income of $59.4 million last year. Basic and diluted earnings per share for the company’s publicly traded Class A common stock were $2.75 and $2.68 per share, respectively, for the year ended Sept. 24, 2016, versus $3.02 and $2.93 per share, respectively, for the year ended Sept. 26, 2015.
The company’s capital expenditures totaled $137.6 million and $104.1 million for fiscal 2016 and 2015, respectively. During fiscal 2016, Ingles opened two new store buildings and closed one store that’s being remodeled and will reopen in the future. The grocer’s other store improvement capital projects in fiscal 2016 focused on improving its merchandising, convenience and product assortment.
Asheville, N.C.-based Ingles operates 201 supermarkets in 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 its own supermarkets and unaffiliated customers.