Ingles Q3 Sales Rise, But Net Income Drops
Ingles Markets reported net sales of $1.06 billion and net income of $23.5 million for the third quarter ended June 29, compared with $1.03 billion and $24.5 million, respectively, for the year-ago period, while net sales came to $3.13 billion and net income was $60.7 million for the nine months ended June 29, versus $3.03 billion and $78.9 million, respectively, last year.
The grocer noted that its Q3 2019 benefited from extra Easter sales, as the holiday occurred in April this year. In 2018, Easter occurred in March, during Ingles’ Q2 2018. Ingles’ 2018 Q3 and nine-month net income benefited from lower income tax expense caused by the December 2017 drop in income tax rates and by changes in certain tax calculation methods.
“Our strong sales growth continues to drive operating results and provide capital for the ongoing improvement of our store base,” said Robert P. Ingle II, chairman of the board.
Ingles Q3 2019 net sales grew by $27.5 million, or 2.7 percent, to $1.06 billion, from $1.03 billion for the year-ago period. Excluding gasoline sales and the effect of this year’s extra Easter sales, retail grocery comparable-store sales rose 4.3 percent from last year.
Gross profit for the grocer’s Q3 2019 quarter climbed 6.2 percent to $258.9 million, compared with $243.9 million last year. Gross profit, as a percentage of sales, was 24.4 percent for the June 2019 quarter, versus 23.6 percent for the June 2018 quarter.
For the nine months ended June 29, Ingles’ retail grocery comps, excluding gas, increased 3.9 percent. Gross profit for the nine months ended June 29 increased 5.2 percent, totaling $761.7 million, versus $723.7 million for the year-ago period. The retailer’s gross profit, as a percentage of sales, was 24.4 percent for the June 2019 nine-month period, compared with 23.9 percent last year.
Ingles’ capital expenditures for the June 2019 nine-month period were $123.2 million, compared with $120.5 million for the year-ago period. Cap ex for the entire fiscal year is expected to be about $140 million to $180 million, according to the company.
Asheville, N.C.-based Ingles operates 199 supermarkets in six southeastern states, as well as neighborhood shopping centers, most of which contain an Ingles supermarket. No. 24 on Progressive Grocer’s 2019 Super 50 list of the top grocers in the United States, the company also owns a fluid-dairy facility that supplies its supermarkets and unaffiliated customers.