Ingles Q4, FY Net Sales Edge Up

Net income, EPS were down, however
Bridget Goldschmidt
Managing Editor
Bridget Headshot
Ingles Shelby North Carolina Main Image
Ingles Markets operates 198 supermarkets in six southeastern states.

Ingles Markets Inc. has reported slightly better sales results for the three and 12 months ended Sept. 30. Net sales for the fourth quarter of fiscal 2023 totaled $1.58 billion, compared with $1.45 billion for the quarter ended Sept. 24, 2022. Gross profit for the fourth quarter of fiscal 2023 came to $369.7 million, or 23.3% of sales, while gross profit for the fourth quarter of fiscal 2022 was $364.8 million, or 25.1% of sales. 

Other results for the time period showed declines, however, perhaps due to the lingering effects of inflation. Net income was $52.6 million for the fourth quarter of fiscal 2023 quarter, versus $70.2 million for the fourth quarter of fiscal 2022. Basic and diluted earnings per share for Class A Common Stock were $2.83 and $2.77, respectively, for the quarter ended Sept. 30, 2023, compared with $3.78 and $3.69, respectively, for the quarter ended Sept. 24, 2022. Basic and diluted earnings per share for Class B Common Stock were each $2.57 for the latest quarter, whereas last year it was $3.43.

The fourth quarter of fiscal 2023 had 14 weeks versus 13 weeks for the fourth quarter of fiscal 2022.

For the fiscal year ended Sept. 30, 2023, net sales at Ingles totaled $5.89 billion, compared with $5.68 billion for the fiscal year ended Sept. 24, 2022. The company also managed to narrow its total debt by the end of fiscal 2023 to $550.2 million from last year's $571.9 million. 

Similar to the Q4 results, other metrics revealed declines, though. Gross profit for the fiscal year ended Sept. 30, 2023, totaled $1.40 billion, or 23.8% of sales, while gross profit for the fiscal year ended Sept. 24, 2022, came to $1.42 billion, or 24.9% of sales. Net income totaled $210.8 million for this fiscal year, versus $272.8 million last year. Basic and diluted earnings per share for Class A Common Stock were $11.35 and $11.10, respectively, for the fiscal year ended Sept. 30, 2023, compared with $14.69 and $14.36, respectively, for the fiscal year ended Sept. 24, 2022. Basic and diluted earnings per share for Class B Common Stock were each $10.32 for this fiscal year, compared with $13.35 of basic and diluted earnings per share for last year.

Capital expenditures for the 2023 fiscal year were $173.6 million, versus $119.6 million for the 2022 fiscal year. 

The fiscal year ended Sept. 30, 2023, had 53 weeks, while the fiscal year ended Sept. 24, 2022, had 52 weeks. 

According to Ingles, it currently has the full amount available under its $150 million line of credit. The company said that its financial resources, including the line of credit and other internal and anticipated external sources of funds, will be enough to meet planned cap ex, debt service and working capital requirements for the foreseeable future.

Asheville, N.C.-based Ingles operates 198 supermarkets in six southeastern states. In conjunction with its supermarket operations, the company operates 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. 56 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.

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